Inflation gobbles up 3.1 billion of our savings

Belgian savers have lost 3.1 billion euros over the past two years as interest on savings accounts failed to keep abreast of inflation. For twenty-seven months now interest on Belgian savings accounts has been lower than the inflation rate.

The daily De Tijd has calculated that since June 2009 Belgian inflation has gobbled up 3.1 billion euros in savings. This works out at around 280 euros per person or 650 euros per household.

Belgian inflation remains above the target set by the European Central Bank. At the same time the yield on Belgian savings accounts has plummeted to an all-time low. The loss in spending power is most noticeable for people who bank with the main high-street banks. They offer a lower return than smaller banks, but hold the biggest share of our deposits.

De Tijd argues that change is on the way. It reports that inflation is on the wane and in future savers should be able to count on a higher return.