ABN Amro savings rate down to 1%

The interest on ABN Amro direct savings account will be lowered from 1.10 to 1.00 percent on September 30th. In mid September savers received an average of 1.30 percent. The average savings rate has been declining for years and is now at a historically low level. One of the major causes of the falling interest rates, is the policy of the European Central Bank (ECB). ECB recently lowered the interest rat at which banks can borrow to 0.5 percent, a record low. An interest rate of 1 percent will mean that returns disappear instantly, as inflation is also at 1 percent. Rabobank and ING offer a slightly higher percentage on freely available savings than ABN Amro. They offer 1.10 and 1.15 percent respectively. Aegon subsidiary Knab leads with an interest rate of 1.75 percent.