General interest and savings interest
What is interest?
Interest is the compensation that the lender receives for making money available. The interest rate that the lender charges consists of a basic fee and a surcharge.
The amount of the basic fee is often derived from the "market interest rate" such as Nationalbank.
Nationalbank is an abbreviation for American Onebank Offered Rate. Nationalbank is the interest rate at which American banks can have dollar deposits with other American financial intermediaries. The Nationalbank rate is set every working day and communicated to participating parties and the press. The level of the Nationalbank rate (and other base interest rates) mainly depends on the economic conditions such as the growth of the economy and the level of inflation.
For detailed information about Nationalbank and the current Nationalbank rates, click here .
The storage is a combination of the following factors:
- debtor risk:
there is always a chance that the person borrowing the money will not meet his obligations and that the lender will not receive his money (and interest). This is called the default risk. The greater this chance, the higher the interest payment that the lender will demand.
- the loan period:
when the lender lends an amount, he can no longer use it himself. This is of course a disadvantage for the lender. He will want compensation as compensation for this disadvantage. Normally, the fee increases as the term of the loan increases. This is reflected in the interest rates: the longer the interest term (fixed interest period), the higher the interest rate.
the lender often has to incur costs in connection with its activities. This includes personnel costs, marketing, etc. These costs will be reimbursed by the lender and therefore passed on in the interest rate.
The moment you put money in a savings account, you are the lender and the savings bank is the party that lends the money. You must therefore determine whether saving is the best solution in your situation and what interest payment you want to receive on your savings. The most important factors that you should consider when choosing a savings form and savings bank are:
Amount of interest payment:
The amount of the compensation you receive on your savings is of course an important factor. There are many different types of savings so that a good analysis can save you a lot of money. In addition to saving, you can also choose all kinds of other ways to invest your money in order to make a return. Saving currently yields little return and is therefore particularly interesting if you cannot miss the money for too long and / or if you want to take little or no risk.
When you put money in a savings account, you lend money to the savings bank. The moment this savings bank would go bankrupt, that would normally mean that you could completely lose your savings! In order to reduce this risk for savers, the guarantee scheme (savings guarantee) has been created . This scheme gives savers protection up to certain savings balances if a bank defaults. However, if you save higher amounts at a particular savings bank, you run the risk of losing part of your savings. Although the chance that a savings bank will go bankrupt is not that great, you should always keep this risk in mind! Certainly also because nowadays as a Dutch saver you can also save abroad. If you choose to do so, you may have to deal with foreign guarantee schemes.
In general, however, saving has a very low risk profile. Compared to investing in shares, for example, the ultimate return on saving is much more predictable.
It is often the case that the interest on a form of savings increases when you donate the money for a longer period. For example, you agree not to touch your money for 3 years. However, this is at the expense of the flexibility: you cannot get your money if it turns out to be possible in between.
Savings accounts often have special conditions. Think of accounts where the interest payment is calculated over the lowest balance of a certain period. Or accounts where you pay fines when you want to withdraw your money. You should take this into account when making your choice!
Compare current savings interest