Dutch households put 34.1 billion euros in their savings and bank accounts last year, bringing the total to 562.5 billion euros. This is evident from figures published this week by De Nederlandsche Bank (DNB).
With this, the Dutch still saved considerably more than before the corona years. In the years between 2012 and 2019, an average of 9.2 billion euros was saved per year. This increased sharply in the corona years, to 42.6 billion euros in 2020 and 36.8 billion euros in 2021. During the corona pandemic, lockdowns put a significant pressure on consumption, while incomes in many households remained stable due to the extensive government support.
According to DNB, last year’s higher savings balance may be due to the uncertainty about the economy and own finances due to the war in Ukraine, the energy crisis and the high inflation caused by this. As a result, households mainly postponed larger purchases – which is not necessarily rational from an economic point of view, because inflation can make a later purchase more expensive.
It is striking that households had the financial room to save last year, given the same high inflation. After all, they spent more on groceries and energy, and also more often used their wallets for catering and holidays after the corona years.
DNB has no figures on the distribution of savings by income group, but it is likely that the growth of savings is not spread evenly. The latest figures from Statistics Netherlands, for 2021, showed that 20 percent of Dutch households had a maximum of 2,500 euros in their (savings) account. The average savings balance in 2022 was 46,300 euros per household. One in ten households had at least a ton on their bill.
Historically low interest
Deposits in 2022 mainly increased on savings accounts, DNB reports, by 23.2 billion euros. In the corona years before, the extra money was mainly deposited in checking accounts. The difference can probably be explained by the fact that banks have been giving a little interest on savings accounts since the summer, after the interest rate hikes by the central banks.
The credited interest in 2022 was historically low. Of the increase in savings of 34.1 billion euros, only half a billion euros came from interest credited. That is the lowest amount since DNB started keeping the figures in 1998. That has sometimes been different: in 2012, net interest peaked at 6 billion euros. That was then a third of the increase in savings.
It is expected that the lowest point of the net interest credit has now been reached. ABN Amro and Rabobank announced last week that they will increase their savings interest from 0.25 to 0.5 percent in the coming months. Other banks are likely to follow. If, as it has itself announced, the European Central Bank (ECB) raises the base rate further in the course of the year, there is a good chance that savings rates will also rise. On Thursday, the ECB will probably raise the interest rate for which banks can store their deposits at the central bank from 2.0 to 2.5 percent.
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