Smaller Dutch banks offer highest deposit rates in Europe

Smaller Dutch banks are offering significantly higher interest rates on deposits to attract savers, sometimes exceeding the rates at major banks by as much as one percentage point, according to comparison site Geld.nl.

Over the past year, smaller banks have already reportedly increased interest on standard savings accounts. This year, they are also boosting rates on fixed-term deposits.

Garantibank now offers 3 percent on a five-year deposit, which Geld.nl reports is the highest rate in Europe. Ayvens has also raised its deposit rates. A five-year term at Ayvens now pays 2.7 percent.

In contrast, major Dutch banks such as ING, Rabobank, and ABN Amro offer between 1.95 and 2.3 percent for a five-year deposit.