Inflation will cost Dutch savers more than a billion in October

High inflation continues to occupy the minds of people around the world: inflation in the United States (6.2%) has reached its highest level in more than thirty years, and in the Netherlands it has risen to the highest level since April 2002. But what exactly does this percentage mean for the purchasing power of Dutch savers? Rice calculated.

According to the savings platform, consumers will have to raise prices more and more while they will not “get anything back” in the form of savings interest. Using the official savings figures of De Nederlandsche Bank – Raisin estimates that the total savings of Dutch households is approximately € 410 billion. This includes € 350 billion in daily call savings accounts and € 61 billion in fixed term savings accounts.

At an average annual savings rate (in September) of 0.01% of daily savings accounts, savings in the Netherlands earn about € 3 million a month in interest. நில 61 billion in fixed term savings accounts earns € 86 million per month with an average interest rate of 1.7%. In total, € 89 million in interest will be credited in October.

“If annual inflation is 3.4%, purchasing power for October is down 0.283% (3.4% divided by twelve).” With savings of € 411 billion, this equates to 1.165 billion. Therefore, the savings site says that the interest credited is no more than a drop in the hot ‘savings bank’. “Comparing purchasing power losses due to inflation with credit interest, it is now clear that the Dutch now lose an average of one month’s annual savings interest compensation (approximately € 1 billion).”

wry

Eelco Habets, Country Manager for the Netherlands in Raisin, is surprised to find that the Dutch are losing more than a billion purchases a month. “It only covers € 89 million in accumulated interest. Low interest rates in the Netherlands have hit savers directly in their wallets. Wealthy savers have a lot of fuss about negative interest rates, but small savers also spend a lot of money – every month.”