ING will reduce the interest rate on freely withdrawable savings accounts to 0.01 percent on 19 December, the bank announced on Monday. The lower interest rate applies to savings amounts up to 1 million euros. In August the savings interest was already reduced from 0.03 to 0.02 percent.

ING is not the first bank with such a low savings rate; Rabobank also lowered the interest rate at the end of November to 0.01 percent and at ABN AMRO the interest rate is also 0.01 percent. Some smaller banks still offer savings rates of up to 0.20 percent, but Triodos Bank, for example, has already had interest rates at 0 percent.

The fact that many banks have recently lowered their savings rates is due to the European Central Bank (ECB), which is constantly reducing deposit rates. Banks usually receive this interest from the ECB for storing money. However, because interest rates are currently negative, banks now have to pay for storing their surplus cash.

Whether the lower interest rate at ING will also lead to a negative interest rate is not known. The bank said it would take a closer look at savings policy. "The question is: are you going to count negative interest rates on savings or are there other ways to compensate," said Ralph Hamers in July.

In the Netherlands there are two banks that exclude a negative savings interest: ABN AMRO and De Volksbank. At the beginning of November, ABN AMRO promised not to charge a negative savings interest for customers with less than 100,000 euros in their savings account. De Volksbank also decided earlier this year after customer research in 2020 not to charge a negative savings interest on savings accounts. It is not known how that will happen next year.

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