Special purpose bank savings as a popular alternative

Dutch households had nearly 11 billion euro deposited in special purpose bank savings products on 31 December 2011. This is nearly 5 billion euro (over 80 percent) more than the year before and nearly five times as much as in 2009.

Fiscally attractive special purpose bank savings

Special purpose bank saving is a savings product with which people can accumulate money in a fiscally attractive way. Initially, in 2008 this type of saving could only be used for building up pensions and redeeming mortgages. In 2010 it also became possible to save for funerals and to deposit severance pay in a fiscally advantageous way. The severance pay deposits increased by nearly 1 billion euro to 1.7 billion euro in 2011.

Bank savings for building up pensions increased by 1.6 billion euro (66 percent), for a pension pay out by 0.8 billion euro (50 percent), and for mortgage redemption by 1.5 billion euro (116 percent) in 2011. There are very few people who use the option for funerals.

Special purpose bank savings (31 December)

Special purpose bank savings (31 December)

Rising share of bank savings

The share of special purpose bank savings in total savings rose from less than 1 percent in 2009 to 3.6 percent on 31 December 2011. On that date Dutch households had 306 billion euro in savings, over 15 billion euro more than the year before. Much of the increase is due to diminishing investments in investment institutions, shares and bonds. 

More deposited in company savings scheme in its final year

Another fiscally attractive way of saving is the company savings scheme. In 2011 it was announced that this option would be terminated on 1 January 2012. Deposits in 2011 were 300 million euro higher than the 2006–2010 average. The total company savings scheme bank balance increased to nearly 3.3 billion euro in 2011.

Bram de Boo and Bas van Noppen