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 savings rate to 0.01 percent at the end of November and the savings rate at ABN Amro is also at that level.
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.
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