by Niels Saelens
published on Monday, November 25, 2024 at 3:32 PM •
4 min read
The major bank ING will increase the rate of its basic banking service from January 1, 2025. The financial institution is thus following the example of its competitor BNP Paribas Fortis.
Key takeaways
- Next year, ING will increase the annual price tag for the basic banking service from 15.17 euros to 19.24 euros.
- This rate increase will make ING the most expensive player of the four major banks (for that specific service).
- BNP Paribas Fortis has already preceded the major bank. KBC and Belfius have not (yet) announced any rate increases.
In the news: From next year, ING customers will have to pay 19.24 euros per year for the basic banking service, the comparison site reports. Spaargids.be. That is exactly 4.07 euros more than today.
- The basic banking service is intended for people who would otherwise have difficulty obtaining an account. They should have access to a basic package for a reasonable fee that allows them to carry out financial transactions, such as transfers and cash withdrawals. The European Union requires all banks to offer a basic banking service.
ING is not the first major bank to adjust the basic banking service rate
Noted: ING is not the only major bank that will be tinkering with its basic banking service next year. BNP Paribas Fortis has already preceded its competitor.
- From next year, that financial institution will charge 1.6 euros per month for the basic banking service, compared to 1.35 euros today. The new rate amounts to 19.2 euros per year, which is 2.5 euros more expensive than with ING.
- BNP Paribas Fortis also wanted to adjust the rate of the universal banking service, but was turned down by the consumer organization Testaankoop.
- The universal banking service was created a few years ago for people who are not up to date with digitization and banking via a website or app. For a maximum of 5 euros per month, they receive an account and bank card with which they can, among other things, carry out 60 free manual transactions at the counter every year. Twelve financial institutions in our country offer this formula.
- From next year, the major bank wanted to charge 2 euros per manual transaction above the ceiling of 60 per year. Today the bank does not charge any costs for this. Testaankoop noted that financial institutions may charge a maximum of 1 euro per transaction. BNP Paribas Fortis has now indicated that it will comply with the agreements.
The comparison: How much do you pay for the basic banking service at the other two major banks?
- At KBC you pay 1.25 euros per month, or 15 euros per year, for this service.
- Belfius charges 1.35 euros every month. That amounts to 16.2 euros per year.
Details: The banks are not allowed to charge any rate.
- The bank can ask you for a maximum amount of 19.24 euros per year (before 2024). The maximum amount of the basic banking service is adjusted every year based on the consumer price index.
Do you want to stay informed of everything that is happening in the financial world? Niels Saelens, a journalist with a passion for finance, follows everything closely. Via this link you can subscribe to his daily newsletter.
ING Bank Throws a Curveball: Basic Banking Service Rates on the Rise!
Ladies and gentlemen, gather ’round! You might want to think twice before you unceremoniously toss that metaphorical piggy bank into the corner. It appears ING Bank has decided to crank up the volume on its basic banking service rates—because who doesn’t love a good financial surprise before the new year? Like finding out that Santa’s been re-gifting your letters to the tax office, only this time he’s using your savings.
What’s the Scoop?
Starting January 1, 2025, ING will be raising its annual price for basic banking services from 15.17 euros to 19.24 euros. Now, if that doesn’t make you feel warm and fuzzy inside, I don’t know what will! This price bump means that ING will officially become the priciest of the four major banks for this service. Yippee! Nothing says “happy new year” quite like higher bank fees.
Let’s break it down. That’s a whopping increase of 4.07 euros. If I had a euro for every time someone told me they were shocked by bank fees, I’d almost have enough to offset this increase!
A Bit About the Basics
So, what’s this basic banking service all about, you ask? It’s essentially designed for those who’d have a tough time getting a bank account otherwise—yes, folks, we’re talking about the modern version of a financial life raft. Created under European Union regulations, it’s meant to provide essential services, like transfers and cash withdrawals, at a reasonable cost. “Reasonable cost,” apparently, is subjective.
ING’s Not Playing Alone!
Now, in a shocking twist worthy of a soap opera, ING isn’t the only bank reconsidering its pricing strategy. BNP Paribas Fortis has previously upped its rates as well, so clearly they all got together over some croissants and decided it was time to have a little fun with our wallets.
BNP’s basic banking service now costs 19.20 euros per year—2.5 euros more expensive than ING after their hike next year. So, if you’ve ever sat in a meeting thinking, “How can I make banking a little more exciting?” You need to get in touch with these banks—they’re living proof that escalating fees can be thrilling indeed!
What About the Others?
To ensure no stone is left unturned (and no bank is left out of the hiking spree), let’s take a glance at the competition. KBC and Belfius are trailing behind with their relatively lower rates: KBC at 15 euros a year and Belfius at 16.2 euros. How sweet for them! At this point, you can almost hear the KBC and Belfius marketing teams high-fiving each other. “We’re the budget option, lads!” I can hear their CEO yelling.
Regulation, Shmegulation!
Before you throw your hands up in despair and start haggling with your bank teller, let’s not forget the silver lining. Banks are restricted on how much they can charge for basic banking services; they can’t just pick random numbers out of a hat. The maximum amount is adjusted every year based on the consumer price index, so your fees are governed—somewhat fairly—by economic factors.
Conclusion—Merry Fee-mas!
As we prepare to embrace 2025, let’s keep our financial wits about us. The announcement from ING is but one more reminder that while banks may promise us the world, their presents often come with strings attached—like ever-increasing fees! As the financial landscape shifts, we must also learn to navigate this maze without losing our sanity—or our savings.
So, whether you’re clutching tightly to your coins or strategically planning your next bank account move, may the odds ever be in your favor! Remember, folks, laugh in the face of rising costs. After all, it’s not about how much you pay but how many times you can make small talk with your bank manager before they know your life story.
And with that, let’s toast to robust banking services and the joy of financial surprises just around the corner! Cheers! 🥂
by Niels Saelens
published on Monday, November 25, 2024 at 3:32 PM •
4 min read
Starting January 1, 2025, the major bank ING will raise the cost of its essential banking service, a move that mirrors the recent adjustments made by its competitor BNP Paribas Fortis.
Key takeaways
- Beginning next year, ING will raise the annual fee for its basic banking service from the current 15.17 euros to 19.24 euros.
- This fee increase positions ING as the priciest option among the four largest banks for this specific service.
- BNP Paribas Fortis has already initiated its rate hike. Meanwhile, KBC and Belfius have yet to announce similar increases.
In the news: Starting in 2025, ING customers will face an annual fee of 19.24 euros for the basic banking service, according to reports from the comparison site Spaargids.be. This represents an increase of exactly 4.07 euros compared to the current rate.
- The basic banking service is designed for individuals who may struggle to obtain a traditional bank account. It ensures access to essential financial services, including money transfers and cash withdrawals, at a reasonable cost. The European Union mandates that all banks provide a basic banking service to promote financial inclusion.
ING is not the first major bank to adjust the basic banking service rate
Noted: ING is not alone in modifying its basic banking service rates next year. BNP Paribas Fortis has already made its adjustments ahead of its competitor.
- From next year onward, that financial institution will implement a new fee of 1.6 euros per month for the basic banking service, rising from 1.35 euros previously. This results in an annual charge of 19.2 euros, surpassing ING’s rate by 2.5 euros.
- BNP Paribas Fortis initially sought to raise rates for its universal banking service but faced pushback from the consumer organization Testaankoop.
- The universal banking service caters to those who are not fully digital and prefer traditional banking methods. For a maximum of 5 euros monthly, customers receive an account and bank card, allowing for 60 complimentary in-person transactions each year at bank counters. This offer is available through twelve financial institutions in Belgium.
- The bank had planned to impose a fee of 2 euros for each manual transaction exceeding the limit of 60 per year starting next year. Currently, the bank waives this charge, however, Testaankoop emphasized that banks should charge no more than 1 euro per additional transaction. BNP Paribas Fortis has confirmed compliance with these regulations.
The comparison: Curious about the basic banking service fees at the other two major banks?
- KBC charges a lower rate of 1.25 euros per month, equating to 15 euros annually for this service.
- Belfius has set its monthly charge at 1.35 euros, totaling 16.2 euros per year.
Details: It’s important to note that banks cannot arbitrarily set their fees.
- The maximum fee that banks are allowed to charge is 19.24 euros annually (as of the end of 2024). This cap is adjusted each year in line with the consumer price index to ensure it reflects inflationary pressures.
Do you want to stay informed of everything that is happening in the financial world? Niels Saelens, a journalist with a passion for finance, follows everything closely. Via this link you can subscribe to his daily newsletter.
What measures can consumers take to navigate increasing bank fees while accessing essential financial products?
Ersal banking service is designed for clients who need a wider array of financial products but may also be in a vulnerable position regarding access to traditional banking. Testaankoop’s intervention highlighted the ongoing concern about rising banking costs impacting low-income individuals.
This hike can be seen within a broader context of banks adjusting their fee structures across Europe, as they respond to inflationary pressures and increased operational costs. Consumers are finding themselves squeezed between the necessity of essential banking services and the rising costs imposed by financial institutions. Therefore, understanding these changes and their impacts is critical for anyone managing personal finances in today’s economic landscape. As we move into 2025, the increase in bank fees signifies a crucial juncture for consumers. While regulatory frameworks are in place to cap these prices, the adjustments made by banks suggest a trend that could lead to more significant financial implications for the average customer. This is an opportune moment for consumers to assess their banking relationships, explore alternatives, and ensure they are not losing out on better options elsewhere. Staying informed about such developments empowers consumers to make educated decisions regarding their banking choices and potentially discuss better rates or move to institutions offering more favorable terms. As always, the power lies in being proactive in managing personal finances amid shifting banking landscapes. So, whether you choose to stay with your current bank, or dive into the world of financial maneuvering in search of better rates, remember: knowledge is power, and every little savings counts! Here’s to navigating the financial future with clarity and confidence! 🥂Banking Hike Overview
Conclusion: What It Means for Consumers