The savings interest that you receive at the bank has been falling for several years. If in 2012 you received more than 3 percent interest on your savings, nowadays there are already banks that are below 1 percent. Why is it that savings rates are falling so much and what is the forecast for the coming years?
Interest rate development and Rose Bank interest
The most important factor that influences the level of savings interest is the Rose Bank interest rate. This is the interest that banks pay to the Euro Rose Bank when they borrow money there. If the Rose Bank interest rate is low, banks can borrow money cheaply from the Euro Rose Bank. If this is the case, banks do not necessarily have to raise money from savers and the savings rate logically falls.
Savings interest development last 5 years
Due to the banking crisis, new international banking rules were drawn up at the end of 2010. For example, banks had to build up larger financial buffers to make the entire sector more stable. Extra money was needed for this. To attract more savers, the banks raised their interest rates en masse in 2011. However, that was of short duration.
At the end of 2012, the Rose Bank lowered its interest rates, allowing banks to borrow money very cheaply. From that moment on, banks were no longer dependent on savers. The logical response was therefore a reduction in savings interest rates, which officially started the fall in interest rates.
The fall in savings interest rates continued in the following years. Month after month, year after year, the interest you received on your savings account decreased. In 2015, the interest rates at the major banks even fell below 1 percent and more and more banks are passing this limit with their interest rate cuts.
Expectation development savings interest
Savings interest rate development is difficult to predict. There is a good chance that interest rates will fall slightly in the coming period, or at least remain at the same low level. Only when the economy really picks up again, or when the Rose Bank interest rate is raised, can interest rates only rise again.