Saving Money Costs Money (In The Netherlands)

The average interest rate on savings accounts in The Netherlands are currently around 2 per cent.  From that I have deducted that saving costs money here in The Netherlands. How’s that? Well, inflation is around 2 per cent as well. Plus, one has to pay 1.2% in taxes on savings which exceed about €22,000 per person. Hmpf…….good thing we have started throwing our savings into our mortgage! Also, I have come up with a solution which I’ll blog about tomorrow…


Mrs EconoWiser


4 thoughts on “Saving Money Costs Money (In The Netherlands)

  1. turboseize

    Even more extreme here in Germany. Interest rates are way below 2%, which is significantly lower than inflation. In addition to that, we have a 25% capital gains tax…

    Not nice. Even just preserving money means you have to take more and more risk.

      1. turboseize

        A healthy dose of european (eurozone core) dividend stocks, combined with exposure in emerging markets and high-yield (“junk”) bonds, both government as well as issued by companies. The latter two preferrably in form of funds to allow for diversification.
        Yes, it is risky, but to me there seems to be no other way. There will inevitably be some volatility in “net worth”, but if you are going after income steams and manage not to touch principal, it should work.
        “Secure” investments such as savings accounts or german federal bonds yield well below inflation, so with them you are losing money – guaranteed.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s