Dutch firm BinckBank has collaborated with the German savings broker Raisin to provide savings services to its customers.
The savings services will be provided through a new platform Binck Savings, which will enable the customers to save their deposits securely at a higher rate of return at select group of European banks.
The new platform intends to exploit the low interest rate environment by offering a higher interest rate on deposits with varied maturities that can rise to 1.15% on an annual basis.
Currently, the Dutch customers can avail savings services in two foreign banks at Euram Bank (Austria) and J&T Banka (Czech Republic).
More banks are expected to join the service soon following the fulfilment of BinckBank requirements.
International banks with a local banking license and affiliated with the Deposit Guarantee Scheme (DGS) that applies in their country are allowed to partner with BinckBank and Raisin in this initiative.
BinckBank chairman of the board Vincent Germyns said: ““Binck Savings is a perfect alternative for the saver struggling with the current low interest rates. Although the number of investors has been growing for years, most Dutch people are primarily real savers in an environment which is still dominated by incumbent banks.
“With our new savings platform, Binck offers a unique online and easy in its use product for this group that often consciously does not invest this part of their reserves, but which is increasingly looking for a higher interest rate compensation on their savings.”
The savings account per bank is protected to €100,000 for the account holder, where the customers can directly transfer money into deposits of the partner banks through their Binck Savings online account.
All deposits have a fixed guaranteed interest rate with varying maturities ranging from six months to five years.
After maturity, the interest is paid out and the amount can be transferred to one of the affiliated savings banks.