The highest savings interest rate will fall again this week by 0.1%. It has been less than a month since the last interest rate cut. A race to the bottom?
Highest savings interest rate is falling
On Friday 9 December, Good Finance lowered the savings interest rate from 0.7% to 0.6%. This means that the highest savings interest rate in the Netherlands also falls by 0.1%. The interest rate cut gives the savings bank competition from.
Less than a month after the last interest rate cut
It has been less than a month since the highest savings rate has been lowered. Good Finance then also reduced its savings rate by 0.1%. The number of interest rate cuts seems to have accelerated. In the past month, no fewer than 15 banks have lowered their savings rates, including twice the highest rate in the market.
Cause race to the bottom
We cannot give a clear cause for this sudden race to the bottom (a negative savings interest rate coming ever closer). The most important policy rate has remained unchanged since March. Another indicator, the Good Finance interest rate, has hardly changed in the second half of this year. See also our savings interest expectation.
Good Finance believes that market interest rates are currently low. The recent interest rate cuts may still be a correction for falling market rates from six months ago. Afraid to scare customers away, the savings banks opt to gradually lower the interest on savings.
Mortgage interest rate is rising. Where are the savings banks?
While savings rates are falling further, mortgage rates are rising for the first time in years. Does this also mean the turnaround for savings? Every homeowner knows that if the mortgage interest rate is high, the savings interest rate is also high. However, this is not a certainty. In this article we explain that the interest on savings does not automatically increase with mortgage interest.
Make the best of it
We must make the best of it for now. We have a number of tips for this:
- Savers with a large bank can still double their savings interest by opting for a higher savings interest.
- By temporarily fixing your savings or agreeing on additional conditions, you can increase your savings interest.
- Invest for more return: read more about starting to invest (in 5 steps) or compare the various investment products.