Medirect Lowers Savings Interest Rates For The Third Time In Four Months

Internet bank MeDirect has announced that it will be lowering the rates on its savings accounts for the third time in four months. This comes after the European Central Bank Bank (ECB) has also lowered interest rates in recent weeks.

Details of the rate cut

As of January 30, MeDirect is lowering the base rate on its Essential Savings savings account from 1,80 percent to 1,60 percent, and the loyalty premium is dropping from 0,50 percent to 0,40 percent. For the Fidelity formula, the loyalty premium is being lowered from 1,70 percent to 1,60 percent, and the base rate is dropping from 0,60 percent to 0,40 percent.

This is the third time since October that MeDirect has lowered the rates of its savings accounts. The bank refers to the interest rate cuts that the ECB has implemented in recent months. The ECB is expected to lower the base rate again by 25 basis points to 2,75 percent.

Other banks will follow

It is very likely that in the coming weeks more couches will decide to lower the interest on their savings accounts. MeDirect is not the only Belgian bank that has decided to lower its savings interest in recent days.

Earlier this week, Belfius announced that it would be lowering the rates for its classic savings accounts from 31 January. From that date, the total return (basic interest and loyalty premium) will be 0,90 percent. This is the first time in a year that the interest on this classic savings account has fallen below 1 percent. However, the rates for the higher-yielding Fidelity formula will not be affected.

Questions & Answers

What has MeDirect announced?

MeDirect has announced that it will lower the rates on its savings accounts for the third time in four months.

What is the reason for the interest rate cut?

The bank refers to the interest rate cuts implemented by the European Central Bank in recent months.

Will other banks follow suit?

It is very likely that in the coming weeks more banks will decide to lower the interest on their savings accounts. Belfius, for example, has already announced that it will lower the rates for its classic savings accounts from 31 January.