Clearer information required on savings products

New savings offers in the Dutch market

In its study of the savings market, the AFM saw many new offers aimed at Dutch savers. These products often differ from traditional savings accounts at Dutch banks, where customers deposit money and receive a single interest rate on the whole balance. We are now seeing products that pay higher interest rates for higher balances, minimum deposits, withdrawal restrictions etc. In some cases, consumers also have to pay charges for other products, such as package fees or charges for a payment account. The AFM also comes across 'savings offers' that are actually investment products.

Providers must comply with laws and regulations

A financial undertaking operating in the Netherlands is required to provide consumers with relevant information enabling them to properly assess a product and/or service. This information must be clear and accurate so that consumers know where they stand. During a short exploratory study of savings products, the AFM found that this was not always the case, so it calls on providers to comply with the legal requirements. The AFM will continue to focus attention on the provision of information by providers of savings and investment products in 2024.

Accurate information: is it a savings or an investment product?

Providers must ensure that information on the product and/or service is clear and does not mislead consumers. The same applies to advertisements. It must therefore be perfectly clear whether they are offering a savings or an investment product. In the exploratory study, the AFM found that this was not always clear. Consumers may have the impression that it is a savings product, but the balance is sometimes placed in a money market fund, which makes it an investment product. Different rules apply depending on the product or service offered. Providers must be alert to this. For example, advertisements for investment funds must include a risk indicator.

Clarity on whether the product is covered by the Dutch or a foreign deposit-guarantee scheme

Providers must ensure that customers can easily find important information and that it is balanced. For example: which interest rate applies under which conditions? And are these conditions clearly specified? But also whether the savings balance is covered by the Dutch deposit-guarantee scheme or a foreign scheme, and what this means for the customer's risk. The AFM expects all providers in the Dutch market to give central priority to the customer's interests. 

Contact the Business Desk

If you have any questions, please contact the Business Desk. You can do so by e-mail: businessdesk@afm.nl or by completing the contact form.