Why do interest rates keep declining?

Banks are under close scrutiny and are being held to a high standard by society. In the meantime, interest rates keep declining. How do you go about explaining that trend?

Retail clients nowadays receive little interest on their savings, if any at all. For example, our Direct Sparen savings account product with flexible withdrawal pays only 0.01%, and some banks are even considering the possibility of charging negative interest. That means that retail clients will actually have to pay for their savings, instead of receiving interest on them. ABN AMRO recently decided not to charge negative interest on retail deposits up to €100,000.

The issue is a complicated one. Still, we have done our best to explain it in 60 seconds.

60-seconds,lage-rente,rente,low-interest,little-interest,saving,savings,inflations,financing,