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The ECB has raised its key rates, Nieuws.nl reports, but Dutch savers will only benefit if their banks choose to pay more interest.
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Nieuws.nl reports that the European Central Bank raised its three main interest rates by 0.25 percentage points on 10 September. From 16 September, the rate banks receive for deposits held at the ECB stood at 2.50%, it says. That is a rate for banks, not the interest paid on household savings accounts. [1]
Dutch banks set their own savings rates, weighing factors including competition and their need for deposits. Nieuws.nl cites the Dutch central bank, DNB, on why savings rates have lagged earlier ECB rises: banks do not immediately earn more from existing fixed-rate loans, while raising variable savings rates increases their costs straight away. [1]
A higher savings rate would not necessarily mean greater purchasing power, either. At 2% interest, €10,000 would grow to €10,200 in a year; if the same goods and services cost 3% more, they would cost €10,300. That is an illustration, not a current savings offer. [1]
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