The savings interest rate remains low for a long time. Are you watching how your savings are worth less or are you taking action? You can do this for more return.
Savings interest for a long time low
Last week it was announced that the European Central Bank would keep the key interest rate low until mid-2020. This means that savings rates will remain low for a long time and will probably fall even further. Read our savings rate expectation for more background with low interest rates.
Dutch people are used to putting money they don’t need directly into a freely withdrawable savings account. Your money is safe and you can always reach it; a nice feeling! However, in the meantime your savings will be worth less.
Becoming a little more expensive
This is because everything around us is becoming a little more expensive. Inflation (overall price increase) crept towards 3% in June. The interest on a freely withdrawable savings account is currently between 0% and 0.25%. So you can buy less and less with your savings.
For power above € 30,360, the efficiency decreases very quickly. You pay tax on that part of your assets.
A freely withdrawable savings account is therefore not enough if you want to grow your assets. However, it is important to always keep an amount in mind for unexpected expenses.
Take action for more return
Whoever wants to make a return with his or her capital must take action themselves. We have 5 tips for you.
1. Pay off debts
There are still Dutch people who borrow and save at the same time. We have the tip for them to first pay off your debts. This immediately results in savings. This also applies to the mortgage debt. However, paying off the mortgage can have an impact on the long term. Therefore, first consult a mortgage advisor.
2. Invest in your house
The house price continues to rise steadily. With an investment in your house you can also take advantage of this price increase. In addition to that a renovation naturally increases your enjoyment of living. An investment in energy saving measures offers a double benefit. You invest in your house and you save on energy costs.
3. Secure your savings
You can increase your return by depositing part of your savings in a deposit. You will then be temporarily unable to handle your savings, but will receive a higher interest in return. Various foreign banks offer higher savings interest rate in the Netherlands in this way. View the offer for deposit savings on Huckleberry Finn.
4. Play for couch
Your assets can help others. Consider, for example, an invert in the house or the mortgage of your (grand) children. In 2019 this is tax-free up to € 100,800. With crowdfunding you invest in interesting projects with a group of investors. View the range at various crowdfunding platforms.
5. Start investing
For those who want and can take more risk, starting investing is an option. You can choose to get started with a broker yourself or have yourself invested with fund investing. If you want to build up capital for your pension, then start saving pension. This is because it is tax-friendly.