Dutch residents have put more money into savings accounts this year than they did in 2023, bringing the total in savings at Dutch banks to over 400 billion euros. However, low savings interest rates at banks in the Netherlands could result in many savers being more likely to start investing their funds. 

Amount of savings increased at Dutch banks

In June 2024, bank customers had saved 33 billion euros more than they had in the same month last year. This means that throughout all Dutch banks in the Netherlands, there was a total of 481 billion euros in savings accounts, which amounts to around 27.000 euros per resident. 

According to Dutch broadcaster NOS, 90 percent of all the savings in the Netherlands is controlled by the four largest Dutch banks, namely ING, ABN Amro, Rabobank and Volksbank. The Authority for Consumers & Markets (ACM) has previously said that this is because there is not enough competition among banks and that the larger banks coordinate with each other to offer low savings interest rates to their customers - a reason why many are choosing to keep their savings abroad.

The organisation claimed that measures are needed to stop this and to also make it easier for customers to switch banks that have higher savings interest rates.

More account holders investing their money

The four large Dutch banks all reported a rise in customers who were investing in the first six months of 2024. Rabobank noticed a 10 percent increase to 6 billion euros in investment accounts compared to the same period last year. “2 billion is new money from customers who come to Rabobank to invest,” said Rabobank financial director Bas Brouwers.

ING saw a similar trend with a 15 percent increase in the number of Simple Investing accounts up to and including August of this year. The bank stated that the growth was due to new and existing customers. 

Switching threshold at Dutch banks

Opening an investment account at ING, ABN Amro or Rabobank requires customers to have an existing account. "We saw the same dynamic in our research with savings accounts: there is a group of consumers who want to save with the major banks, but do not switch from one major bank to another major bank for the savings account because they would then have to take a checking account - with additional costs,” said ACM. “They do not seem to trust other banks enough, which is why they stay with their bank. That is at the expense of competition."

This creates what ACM calls a “switching threshold” which is likely part of the reason more customers are investing as the rising stock prices could add more to their nest eggs than a low interest rate for their savings account.

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