BNP Paribas Fortis will increase interest rates on customers' savings accounts from 1 December, Belga News Agency reports.
The hike will see the base rate on ordinary savings accounts rise from 0.25% to 0.50%, while the fidelity premium rate will remain unchanged at 0.25%.
Meanwhile, the fidelity premium rate on plus savings accounts (compte d'épargne plus) will increase from 1% to 1.25%, while the base rate will stay fixed at 0.5%.
BNP Paribas Fortis' subsidiaries Fintro and Hello Bank! will also raise rates by the same amounts.
Despite the increase, the total (i.e. base + fidelity premium) rates on both accounts will remain well below the European Central Bank's (ECB) benchmark deposit facility rate, currently set at 4%.
They will also remain beneath the rate demanded by consumer rights organisation Test Achats, which has urged the Federal Government to impose a minimum savings rate set at 1 percentage point below the ECB benchmark (i.e. 3%).
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Moreover, L'Echo reports that BNP Paribas Fortis' new rates will still remain below those offered by rival banks. Santander currently offers rates as high as 2.85%, while Keytrade and MeDirect both provide rates up to 2.55%.
Analysts argue that the disparity between the ECB benchmark and the interest rates offered to savers is the primary cause of Belgian banks' recent soaring profit margins.
BNP Paribas Fortis, which is Belgium's largest bank by market capitalisation, posted a record annual profit of €3.16 billion in 2022, nearly a fifth more than in 2021. The bank also reported a record quarterly profit of €4.4 billion in the first three months of this year.
