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Alawwal Bank raises (slight) interest on the savings account |  Banking Services

Alawwal Bank raises (slight) interest on the savings account | Banking Services

Internet bank NIBC Direct will raise interest on one of its savings accounts on July 13. The company reports this on its website and it can also be read in various specialized media. NIBC is the first bank to raise interest on its own savings account – above zero – now that the European Central Bank has announced a rate hike for July.

Savings books have barely paid off for years. If we take inflation into account, purchasing power has disappeared. In a low-interest environment, where borrowing money was very cheap, this was the downside for savers. But with the European Central Bank starting to act amid spiraling inflation, things are changing.

For example, Belfius announced that it will not charge negative interest on funds from companies and legal entities from September 1. KBC had already taken similar action. ING Belgium has announced that it will stop at zero or even negative interest rates on parts of the savings of business customers and individuals with high savings from September 1.

loyalty premium

Specialized player NIBC Direct goes one step further. The interest rate increase does not apply to a classic savings account, but it does to a trust account. This type of account rewards a saver who leaves his money for a long time.

Concretely, the base rate remains the same at 0.05 percent, but the trust premium moves from 0.10 to 0.15 percent. The trust premium applies to savings that remain for twelve months. The higher rate will apply to new periods of fidelity premium.

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