Prevent the value of your savings from declining

Rise and fall in upper savings rates

This week, interest rates on free-for-all savings accounts plummeted. Instead of 0.3% you will now get 0.22% of your bank savings at Big Bank. The highest savings rate is now in the hands of Renault Bank from France. Now you get 0.25%.

At the same time, many European banks have raised interest rates on deposits. With this you now get 1.15% interest Czech J&D Bank If you deposit your savings for 3 years.

For very high savings rates these days you have to look beyond the boundaries. Fortunately, with the advent of storage sites, saving overseas has become much easier. Like grapes. You can easily open one or more savings accounts in Europe with a personal account. Fully in Dutch and under the European Deposit Guarantee Scheme.

Negative savings interest in the Netherlands

Looking at Dutch banks, the trend for savings rates is still declining. Earlier this year, ABN AMRO and ING set interest rates of 0% on all customers’ free withdrawal savings accounts.

The rich have been using savings accounts without interest for a long time. They now have to fear a negative savings interest rate. At most Dutch banks you pay-100,000 to -0.5%.

What will savings interest do in 2022?

Savings banks are now viewed with great trepidation as mortgage interest rates continue to rise. Can we expect savings interest to increase this year?

High inflation is currently causing global interest rates to rise. But where mortgage interest mainly follows the financial markets, the savings interest rate is determined by the policy of the European Central Bank (ECB). The savings banks there still pay -0.5% to save the extra money.

The ECB keeps key interest rates low to boost the economy. However, due to skyrocketing inflation it is becoming less and less desirable. Federal banks in the United Kingdom and the United States are cutting interest rates this year to cool the economy.

The interest rate hierarchy on ECB 2022 can also be followed. According to Glasnot, chairman of De Nederlandsche Bank (DNB) and one of the ECB’s policymakers, this will be very soon in the fourth quarter of this year. Until then, savings rates are expected to be lower and further lower.
Tips for saving with higher income
In the meantime, the value of your savings will be lower and lower due to higher inflation and perhaps a negative savings interest rate. Here are some tips for saving with higher income.

Open a free withdrawal savings account with a savings specialist (up to 0.35%).
See Savings Deposit Range at various interesting European banks (up to 1.15%)
Select savings with conditions such as monthly savings or savings insurance. (Up to 2.00%)
Or you can choose to invest if you want and take a little more risk with a portion of your savings