Rabobank raises savings account interest rate above 1 percent; First major Dutch bank

Rabobank will increase the interest rates on savings accounts from 0.75 percent to 1 percent on June 1. It is the first of the large Dutch banks to hit the 1 percent mark on savings interest.

ING and ABN Amro still offer 0.75 percent interest on their savings account. At ING, this rate applies to amounts up to 10,000 euros. In earlier interest rate hikes, ING and ABN Amro followed Rabobank’s lead, according to NU.nl.

Until November 2022, savers in the Netherlands received virtually no interest on their savings at the three big banks. But since the European Central Bank started hiking interest rates to try and temper the high inflation caused by the Russian war in Ukraine, the Dutch banks have raised savings interest rates several times. Higher interest rates at the ECB are reflected in the interest rates on savings and loans from banks.

Earlier this month, Minister Sigrid Kaag of Finance called the large banks out for lagging behind the ECB when it comes to rising interest rates on savings. Some smaller banks are already offering up to 2.3 percent interest on savings. She wanted the big banks to explain why they were dragging their feet for savers.

“Market interest rates always have a slightly delayed effect on our savings interest,” a Rabobank spokesperson told NU.nl. “This is because the savings are invested for the longer term.”