Dutch households' deposits in foreign banks doubled in two years

At the end of June 2024, Dutch households had around 15 billion euros in banks in other euro countries. That is more than double the 7.3 million euros in foreign deposits at the same time two years ago, De Nederlandsche Bank (DNB) reported. “Foreign savings keep growing,” the central bank said.

In the same period, Dutch households’ deposits in Dutch banks increased by 7.5 percent to 597.3 billion euros. Bank deposits include money in both savings and payment accounts.

Money held in bank accounts abroad represents only a tiny proportion of Dutch households’ total bank balance, but it is on the rise, from 1.3 percent in June 2022 to 2.4 percent in June 2024. DNB attributes the increase to higher savings interest rates offered by many foreign banks. The Dutch banks were recently criticized for not increasing their interest rates on savings in line with their interest rates on loans when the European Central Bank implemented hikes to counter inflation.

Italy has gained a lot of popularity among Dutch savers in recent years. At the end of June 2024, Dutch households had around 2.6 billion euros in deposits in Italy, about the same as in Germany. “For many years, Germany has been the euro area country where the Dutch held the most bank deposits,” DNB said. Estonia has also gained popularity since the ECB started hiking interest rates.

Bank deposits in the Netherlands from households in other euro countries also increased, but much less significantly. In June 2024, households in other euro countries had around 12.7 billion euros deposited in Dutch banks, compared to 10.6 billion euros two years ago. This category includes Dutch emigrates who have been living abroad for more than a year.