The major banks ING, Rabobank and ABN Amro, where the vast majority of Dutch people have an account, currently offer savings interest rates between 1.25 and 1.5 percent. Reason for Dutch households to transfer their savings to banks in other (euro) countries.
This is also happening with an increasing share of our savings. In the first three months of this year, 900 million euros were deposited in foreign accounts, according to figures from De Nederlandsche Bank (DNB). As a result, there was a total of 8.6 billion euros in accounts in other euro countries.
There are two explanations for this increase, says Henk Klein Teeselink, economist at DNB. The bank balances – and thus the savings – of Dutch households have been increasing rapidly since the lockdowns during the corona crisis. “As a result, the amount of savings accounts abroad is also rising.”
According to Klein Teeselink, the increase in Dutch savings in countries such as Estonia and Italy can be linked to the higher interest rates of some banks in those countries.
Neighboring countries popular
Savings accounts in these countries, but also in Slovakia, Spain and France, for example, are also becoming more popular. In the first quarter of this year, Estonia, France, Slovakia and Spain managed more than 3 billion euros from the Dutch. A quarter earlier that was slightly less than 2.5 billion.
It is not surprising that precisely those countries are popular. The Estonian Bigbank now offers 2.7 percent interest on savings accounts; the French Renault Bank 2.65 percent. You can open an account with these banks with a few clicks of a button through various Dutch intermediaries.
Traditionally, the Dutch mainly opt for savings accounts in other European countries. Our neighboring countries are particularly popular. For example, there are more than 2 billion Dutch savings in German accounts and more than 1 billion in Belgian accounts.
Foreigners still store more balances with banks in the Netherlands than Dutch people with banks abroad: more than 10 billion euros. Moreover, the vast majority of Dutch savings are still held in Dutch accounts: 573 billion euros.
“We see that people are hesitant to switch to another bank,” says financial expert Amanda Bulthuis. This is mainly due to the familiar feeling that your bank gives you, she says, especially if you also have your current account and mortgage with that bank.
Trunk sloppy
“On the other hand, people still have DSB and Icesave in the back of their mind and think, what happens to my savings if the bank goes bust?”
Switching does result in some red tape, Klein Teeselink agrees. “Moreover, saving is only one aspect of a bank. Payments, for example, could be a reason to keep a Dutch account.”
ABN Amro CEO Robert Swaak agrees with him, as you can see in the video below:
Anyone considering transferring savings to an account with a higher interest rate in another country would do well to read the fine print. For example, a minimum investment of a few thousand euros and a minimum term often apply. You may also receive the interest less often than you are used to from your Dutch bank.
2023-08-12 12:22:29
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