Dutch banks lag as European one-year deposit rates hit 3%

A renewed interest-rate battle on the European savings market has pushed term-deposit rates sharply higher, with banks now offering 3 percent a year or more on deposits of one to five years — including the psychological 3.00 percent barrier on one-year fixed deposits for the first time since December 2024.

After cautious gains earlier, rates accelerated clearly in April. Banks are passing recent capital-market increases directly to consumers to lock in stable funding, with especially large jumps on medium-term maturities.

Major Dutch banks have not joined the upward move. Because of abundant liquidity, they have left rates for loyal savers unchanged. The resulting opportunity cost for savers has widened to nearly one percentage point on many terms this month. On a 50,000-euro balance, the average Dutch saver is now missing nearly 500 euros a year compared with the best international rates.

Jasper Berkhout, a researcher at Raisin Nederland, said the increases reflect banks’ expectations that capital-market rates will stay elevated.

“The ongoing rise in deposit rates shows that banks are anticipating a scenario in which capital market rates will remain high for longer,” Berkhout said. “Especially on the terms of 1 and 2 years we see a significant catch-up. The psychological barrier of 3 percent for 1 year fixed is being touched. That the compensation for only 12 months now competes with that of 5 years is a rare phenomenon that gives savers a lot of flexibility to secure returns on the shorter term without conceding on the interest compensation.”