Savings are a major source of funding for banks. A good understanding of savers' reasons for switching banks is therefore essential to get an accurate picture of savings as a stable source of funding. This is why we linked information from surveys on saving and switching behaviour to information on the daily interest rates offered on savings accounts. Figure 1 shows the development of savings rates for the relevant research period. The bold line shows the average rate offered by the large banks, while the shaded area presents its spread. The dotted line shows the average rate offered by the small banks. In general, the large banks' rates are lower than those offered by the small banks. From the end of 2005 to the end of 2008, the difference in rates between large and small banks steadily increased to 1 percentage point. From 2009 onwards the rates of both large and small banks decreased again, and the difference narrowed.
Figure 1. Development of savings rates, December 2004 to December 2014