ABN Amro is lowering the interest rate on its savings accounts to 0 percent as of April 1st. Customers with more than 2.5 million euros in their saving accounts will face negative interest. The bank is the first of the large banks in the Netherlands to take this step, NU.nl reports.
ABN Amro will not implement negative interest on savings accounts with less than 100 thousand euros in them, the bank promised. The bank's interest rate on savings currently stands at 0.01 percent. It can, theoretically, still drop for zero. But most customers will not have to pay to keep their savings at ABN Amro, NOS reports.
ABN Amro is lowering the interest on its freely withdrawable savings accounts from 0.02 percent to 0.01 percent as of November 1st, the bank said on its website on Friday. Savings interest at ING is still 0.02 percent and at Rabobank 0.03 percent, NU.nl reports
Minister Wopke Hoekstra of Finance does not want to outright ban a negative interest rate on savings. Such a "hard ban" would be a "very significant intervention in the market" which can have negative effects, he said in response to parliamentary questions from the CDA and PvdA, NU.nl reports.
Dutch consumers will start paying interest on their savings accounts in the near future, various analysts told Financieele Dagblad. They describe negative interest rates on savings as an unavoidable future.
The cash that Dutch banks keep and are required to deposit at the European Central Bank currently costs them more than half a billion euros per year, due to the negative deposit interest rate. "Dutch banks together have 138 billion euros in surplus liquidity, and they pay 0.4 percent on that", Elwin de Groot of Rabobank said to FD.
ING customers are furious by the prospect of their bank maybe charging negative interest on their savings accounts. CEO Ralph Hamers mentioned this as an option to cushion the blow should the European Central Bank decide to cut interest rates again, RTL Z reports.
Triodos bank is the first Dutch bank to drop its interest rate to 0.0 percent. From April Triodos customers will no longer get any interest on their regular internet savings account, NOS reports. Triodos already had the lowest interest rate of all Dutch banks. In October the bank lowered its interest rate to 0.1 percent.
Triodos Bank halved the savings interests for its normal internet savings account from 0.2 percent to 0.1 percent. And with that the Netherlands is one step closer to a negative savings interest rate
ABN Amro business clients may soon feel the effects of the European Central Bank's low interest rates. From October 1st, the Dutch bank is adjusting its conditions to state that the bank can give negative interest rates to account holders with a business checking or -savings account