The Netherlands, an outsider's view.

The Netherlands, an outsider's view.

FINANCE

ABN AMRO first major Dutch bank to lower savings interest to 0%

From 1 April, ABN AMRO will become the first major Dutch bank to lower savings rates to 0% for customers with a balance of less than €2.5 million. Additionally, the bank says on their website that “every client – whether retail or commercial – who has deposited more than €2.5 million will be charged 0.5% interest per annum on the balance above €2.5 million.”

The bank says that “Savings deposits are increasing…And saving deposits are relatively costly for banks. ABN AMRO pays 0.5% interest per annum on deposits placed with the European Central Bank.”

Twitter responses have been generally negative since the bank informed its customers of the change Monday. User @ShadeStar81 asks, “What’s the point of putting anything on a savings account now?”

User @Crypto_NLD asks, “What’s next? Negative interest rates? Storing money at home? Money influx to #Bitcoin? All of the above?”

User @MLugtmeijer1995 tweets, “Why would you put money in a bank with negative interest? Placing your money in another bank or hiding your money yourself is more advantageous.”

Twitter user @MarcovanderPol writes, “#abnamro bring the savings interest rate to 0%. That saves the bank 25 million euros a year. In 2018, it made a profit of 2.3 billion.”

The savings interest at ING and Rabobank remains +0.01%.

Source: Wikimedia, Donald Trung The picture is licensed under the Creative Commons Attribution-Share Alike 4.0 International license.