Statistical News Release: Rise in Dutch household savings while net deposits fall

Statistical news
Datum 2 februari 2018

At the end of 2017 Dutch households' savings deposits held by banks in the Netherlands amounted to over EUR 339 billion, up EUR 2.3 billion on the previous year. The largest portion of this increase is attributable to credited interest, totalling EUR 2 billion. Net deposits (EUR 300 million) returned down to levels seen in 2015, following an upswing in 2016 (EUR 2 billion).

Of the total EUR 339 billion in savings, deposits with fixed maturity amounted to EUR 50 billion (15%), which also included tax-advantaged savings accounts for mortgage loan repayments and retirement. The remaining EUR 289 billion (85%) comprised instant access savings accounts such as internet savings accounts.

Net deposits in 2017 were lower than in 2016, but not particularly low compared with recent years. Net deposits fell substantially as of 2013, a year which even saw net savings withdrawals (EUR -3 billion). The observable change since 2013 can partly be explained by the decline in real disposable income between 2012 and 2014, and falling interest on savings. Households therefore had less ability to save, and also sought more advantageous alternatives for their savings, such as mortgage loan repayments and investments in equity and investment fund shares.

The housing market revival has also put pressure on savings, partly because (first-time) buyers increasingly have to put up more of their own money to secure the purchase of a new home due to stricter loan-to-value requirements and higher house prices.

At the end of 2017 households held over EUR 5.5 billion more in demand deposits than in the prior year, which may be because they favour flexibility over the return on savings, and do not therefore deposit funds into their savings accounts.

As a result of falling interest rates, credited interest declined by EUR 2.9 billion in 2016 to EUR 2 billion in 2017, continuing the downward trend observed from 2012. Average interest rates on deposits with an agreed maturity and instant access savings accounts stood at 0.50% at the end of 2017, down 26 basis points on 2016.

DNB's new statistics website now also includes a household savings dashboard in addition to the regular table.