Adjustment Interest Rates Savings and Term Accounts
Following the latest interest rate cut by the European Central Bank (ECB) and its impact on the financial markets, MeDirect is forced to lower its interest rates for the first time in 12 months. In January 2014, MeDirect raised the interest on its ME3 Savings account from 1.69% to 2.10%. However, the base rate of the ECB is now reaching a historic low. At the same time, interest rates on loans to companies in Belgium and Europe are in a downward trend. Because of the combination of these factors and in the context of a sound policy, MeDirect is currently forced to lower the interest on its savings and term accounts.
Changes to savings accounts
The net interest (after deduction of withholding tax) on the ME3 Savings account goes from 2.10% to 1.95%. This new interest takes effect from 26 September 2014. Until that date, MeDirect customers continue to enjoy the higher interest rate of 2.10%. The net interest (after deduction of withholding tax) on the Express Savings Account goes from 1.50% to 1.35%. This new interest takes effect from 26 June 2014.
Changes to term accounts
From 26 June 2014, new interest rates will apply for new term accounts, as indicated in the table below. Customers who have opened a term account before June 26 continue to enjoy the guaranteed interest rates until the due date of their account.
- Term account for 1 year goes from 2.80% to 2.40%
- 2-year term account goes from 3.00% to 2.60%
- 3-year term account goes from 3.20% to 2.80%
- Term account for 4 years goes from 3.30% to 2.90%
- 5-year term account goes from 3.40% to 3.00%
Despite this interest rate reduction, the savings and term accounts of MeDirect remain among the most competitive savings formulas on the market. MeDirect also continues to offer the highest base rate on the market. MeDirect innovated in 2013 with the launch of the ME3 Savings Account, a savings account with one clear, transparent and high interest rate that customers accrue every day and get paid every three months.