KBC also raises the interest on savings accounts. The bank reports this on Friday. The reason is the systematic increase in interest rates by the European Central Bank (ECB).
“All private individuals who are customers of KBC, CBC and KBC Brussels will benefit from a higher base interest rate and a higher fidelity premium on their existing regulated savings accounts from 8 January 2023. The new rates also apply to new savings accounts.
The interest rate on private savings accounts will increase from 0.01 to 0.35 percent. The fidelity premium for money that remains in the account for at least a year will increase from 0.10 to 0.25 percent. All together, the new interest rate is therefore 0.6 percent, compared to the legal minimum interest rate of 0.11 percent today.
For Start2Save and Start2Save4, regulated savings accounts with a higher fee and a savings amount of up to EUR 500 per month, the base interest rate rises from 0.01 to 0.15 percent and the fidelity premium from 0.10 to 0.75 percent.
After Belfius, KBC is the second major bank to increase savings interest, after a number of smaller players had already done so in recent weeks. Yesterday/Thursday, the ECB raised its key interest rate by 50 basis points, following two increases of 75 basis points each in October and September. KBC is translating that ECB decision to its own customers.