:format(jpeg):fill(f8f8f8,true)/s3/static.nrc.nl/bvhw/wp-content/blogs.dir/114/files/2023/01/heijden-vierkant.png)
to updateThree banks announced on Friday that they will raise interest rates on savings accounts. KBC will do so starting August 1, and Argenta will do so starting July 17. And the price breaker will give MeDirect some extra attention from July 4th.
York Dupont
Last updated:
06-30-23, 13:24
source:
Special Reports, Belgium
KBC It will soon be offering its customers a premium prime interest rate of 0.45 percent over regular savings accounts. The bank reported this in a press release. So it’s all about 0.90 percent. Some banks are already offering more than doubled.
KBC has two specific Start2Save accounts that yield a slightly higher yield, but customers can only deposit €500 per month into them. The interest on those accounts goes to 1.50 percent (0.40% base rate and 1.10% fidelity premium).
The electronic savings account and the Maxi account in Argenta had higher returns than on July 17, the bank said in a press release. The base interest rate rises to 0.5 percent and the trust premium rises to 0.35 percent. The total interest rate rises to 0.85 percent.
With the Growth Account there will be 0.75 percent base interest and 1.25 percent fulfillment premium or 2 percent In total. The account offers a higher return, but the client can only save up to €500 per month.
New is the loyalty account, also from July 17th. It offers 0.15 percent principal interest and 1.1 percent fidelity premium or 1.25 percent In total. With the account, Argenta is targeting customers who want to save for the long term, but still want immediate access to their money.
Friday also announced the online bank MeDirect to raise interest rates. For example, your Fidelity savings account totals July 4 2.30 percent interest, consisting of 0.60% basic interest and 1.70% fulfillment premium. With dynamic arithmetic, there’s a total 1.90 percent interest, consisting of 1.20% basic interest and 0.30% fulfillment premium. The bank announced this in a press release.
Banks are under stress
Banks are under pressure to raise interest rates. The federal government is looking at ways to encourage banks to charge higher fees for savings accounts. The first proposal received negative advice from the National Bank, after which the Minister of Finance submitted a second proposal.
Belvius was the first major bank to announce earlier this month that it would raise interest rates on savings starting July 1. Several smaller banks followed. Among the major banks, ING and BNP Paribas Fortis have not yet released anything on interest rate increases.
Belgians are saving again thanks to wage indexation
Spurred on by the annual wage index, the so-called “savings ratio” of Belgian households recovered in the first quarter. The National Bank of Belgium announced this on Friday.
The savings rate rose to 13.9 percent in the first quarter of this year. It is the share of income that is saved. Household disposable income will increase sharply, plus 4.9 percent, while consumption expenditure will rise less sharply (+1.2 percent). This increases the savings rate.
The explanation seems to be that given the annual wage index, “which was applied to a significant portion of employees in the first quarter,” it is employee salaries that primarily contribute to the strong growth in disposable income.
With the increase to just under 14 percent, the big drop will be reversed in the fourth quarter of 2022. At that time, the savings rate has fallen to 10.8%. On the other hand, household investment, including construction and renovation, decreased slightly. The investment percentage of households increased from 10.1% to 9.8%.
See also. How much interest on savings do you need to be able to live on your own? Sven and Ank ask financier Pascal Babin
Unlimited free access to Showbytes? Which can!
Log in or create an account and never miss a thing from the stars.
“Total coffee specialist. Hardcore reader. Incurable music scholar. Web guru. Freelance troublemaker. Problem solver. Travel trailblazer.”
More Stories
European stock markets open in the green
A record number of people in Belgium are moving to another region
Helpful change at checkout: “Easier and saves you time at checkout”