It’s a fact, Belgians are saving less and less. Savings have indeed fallen by less than $ 7 billion in one month. Even if this figure is incredible, it was nevertheless expected. The main reason is the state of the financial market in Belgium which is not in its best condition.
Low interest rates
Interest rates are at their lowest at the moment and the banks only offer a remuneration of 0.11%, which does not encourage Belgians to save. September recorded a 0.3% drop in outstandings. This low remuneration is also accompanied by high inflation of around 2%. Some institutions, like PSA or DHB, have even preferred to close all savings accounts at home while others do not hesitate to find solutions to further reduce the interest rate they consider still high. Indeed, savings accounts of banks like Fine Bank have been moved to unregulated savings accounts, which allows them to offer zero rates. The whole Belgian financial market is slowing down and it is Belgian savers who are suffering the consequences.
Are there alternatives?
There are not a lot of solutions available to the Belgians, except perhaps the government bond, but again, hope is limited. Online banks, which usually offered better remuneration, are also forced to lower their rates. The government bond, meanwhile, now offers only 0.4% compensation, far from being as advantageous as before. The figures of 5 billion in 2011 are far from being reached since the government bond was only able to make 19 million dollars when it closed. Even the government bond no longer guarantees savings.
Other products as a solution
With the low rate proposed for savings accounts, it is the more available current accounts that seem more attractive for Belgians today. Others are moving towards term accounts which offer better rates. Others, finally, prefer to turn to investments and investments. Despite a higher risk, many opt for an investment in movable portfolios. The stock market has become the new playground for some. The rest hope to be able to receive better remuneration in the real estate investment, even if there too, the profits are difficult to quantify.