Dutch banks are on the verge of offering interest rates on savings accounts which are below 1%, the Financieele Dagblad says on Wednesday.

Interest rates have fallen to their lowest levels in 10 years but will go down even further, bankers have told the paper.

They expect rates to dip below the psychologically significant 1% level this year.

ING, Rabobank and ABN Amro all offer 1% on their most simple internet-based savings schemes, which cover 80% of the €300bn Dutch savings market.

‘Conversations with bankers – as background only because the subject is hyper-sensitive – make one thing clear. They are all waiting for each other. Who will be the first to blink?’ the FD says.

Interest on savings of below 1% is common in other countries, the paper points out.

In addition, other banks offering higher rates, such as Aegon’s subsidiary Knab which offers 1.65%, have not really benefited from the downward trend, the FD says.