This is a good call.
Reminder: when primary interest rates go up, mortgage and loans rates go up, but saving ratings should go up as well.
The whole point of high interest rates is to get people to spend less and save more in order to bring down inflation.
If people are spending less, but they aren't incentivised to save more, then the equation is broken. Not incentivised to spend or borrow, they'll just put their savings in riskier assets that yield higher returns. Banks that don't share interest profits with their customers are selfish and uncooperative enemies of the common good.
And the system is broken solely because of 3 banks (ABN, ING and Rabo) who hold 90% of all Dutch bank accounts. These banks were quick to adjust saving interests during the 2018-2019 period, when at some point those rates became negative, but they've been extremely slow to bring them back up as the ECB increased those rates. As a result, those banks are enjoying record profits - they get high returns on their deposits, but those returns don't trickle down on their customers.
We need a EU law that clearly sets expectations on the maximum acceptable gap between the interests a bank pays/receives and those that it's customers pay/receive. If that doesn't work, then redistribution should be forced - either via taxes or fines.
And we also need more variety: this problem is common throughout Europe, but it's particularly acute in the Netherlands because of our banking oligopoly. If a bank doesn't offer me a good deal, I should be able to walk away and find a better one.
https://dutchreview.com/news/why-are-dutch-savings-rates-so-low/
Fabio Manganiello
npub1v7…ukv0u
2023-10-31 10:30:40 UTC
Author Public Key
npub1v78mmuz20p6qd6nve30axhqu74avwn4f6z4grhug7755rat7wh3syukv0uPublished at
2023-10-31 10:30:40 UTCEvent JSON
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"content": "This is a good call.\n\nReminder: when primary interest rates go up, mortgage and loans rates go up, but saving ratings should go up as well.\n\nThe whole point of high interest rates is to get people to spend less and save more in order to bring down inflation.\n\nIf people are spending less, but they aren't incentivised to save more, then the equation is broken. Not incentivised to spend or borrow, they'll just put their savings in riskier assets that yield higher returns. Banks that don't share interest profits with their customers are selfish and uncooperative enemies of the common good.\n\nAnd the system is broken solely because of 3 banks (ABN, ING and Rabo) who hold 90% of all Dutch bank accounts. These banks were quick to adjust saving interests during the 2018-2019 period, when at some point those rates became negative, but they've been extremely slow to bring them back up as the ECB increased those rates. As a result, those banks are enjoying record profits - they get high returns on their deposits, but those returns don't trickle down on their customers.\n\nWe need a EU law that clearly sets expectations on the maximum acceptable gap between the interests a bank pays/receives and those that it's customers pay/receive. If that doesn't work, then redistribution should be forced - either via taxes or fines.\n\nAnd we also need more variety: this problem is common throughout Europe, but it's particularly acute in the Netherlands because of our banking oligopoly. If a bank doesn't offer me a good deal, I should be able to walk away and find a better one.\n\nhttps://dutchreview.com/news/why-are-dutch-savings-rates-so-low/",
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