Rabobank raises savings rates for the second time in response to high inflation

Rabobank is raising interest rates on savings balances for the second time in a short period of time. As of August 15, most savers will receive 1.5 percent interest on their balances, up from 1.25 percent currently. Rabobank is thus aiming for the highest savings rate of the three major Dutch banks.

Customers who invest their savings on a fixed basis for up to one year will benefit from the interest rate increase two weeks earlier. Those who leave their savings untouched for longer can receive higher interest rates.

Market interest rates, which are the rates at which banks lend money to each other, for example, have risen sharply recently due to central banks' actions to combat high inflation. The new increase in savings interest rates at Rabobank is a response to this, the bank’s spokesperson said.

According to the spokesperson, savings interest rates always follow market rates with a certain delay. This is because banks often invest savers' money in longer-term products such as mortgages, and interest rates on these products were very low until about two years ago.

Earlier this month, interest rates at Rabobank were also raised, from 1 to 1.25 percent. ABN AMRO recently announced it would raise rates by a quarter percentage point in August to 1.25 percent for all deposits up to 1 million euros. ING also said it will raise rates by the middle of next month. All ING retail customers will then receive 1.25 percent interest on savings balances up to 10,000 euros. Beyond that, ING's interest will be 1.15 percent on balances up to and including 1 million euros.

The three big banks manage around 80 percent of all savings accounts in the Netherlands, but by no means offer customers the highest interest rates. The relatively new online bank Bunq is trying to entice customers with 2.46 percent interest. Other banks also offer significantly higher interest rates. Openbank, a subsidiary of Spain's Santander, hopes to attract savers with an interest rate of 3 percent in the first six months.