KBC Raises Savings Rate to 3.15%, Topping Belgian Market

Belgian banking group KBC has announced it will increase the interest rate on its Start2Save and Start2Save4 savings accounts to 3.15 percent effective August 1, 2026, positioning itself as the market leader for regulated savings accounts with monthly deposit limits. The move comes amid an intensifying rate war among Belgium’s major banks, following similar increases by ING and Belfius on July 1.

According to Het Laatste Nieuws, the rate hike applies across all KBC group brands, including KBC Brussels and CBC, the French-language branch. The increase consists of a significant rise in the base rate from 0.75 percent to 1.65 percent, while the fidelity premium remains unchanged at 1.50 percent.

The Competitive Landscape

KBC’s new rate surpasses ING and Belfius, both of which raised their monthly savings rates to 3.10 percent on July 1. Argenta’s Groeirekening offers 3.00 percent, while BNP Paribas Fortis trails at 2.90 percent on its Boost account. NIBC recently launched its Opti Rekening at 3.00 percent, as confirmed by SpaarVergelijker.be, an independent comparison site.

This rapid succession of rate increases marks a return to the short-lived interest peak of two years ago. To find better savings rates, one must look back to 2012-2013.

The ECB Connection

The driving force behind these increases is European Central Bank policy. “The ECB raised its policy rate to combat persistent inflation,” explained Chris Sugira, money expert at HLN. “As a result, banks earn a bit more on our savings that they lend out, and savers want to see that reflected on their passbook. And when one major bank raises savings rates, the competition cannot lag behind.”

As of spring 2026, the ECB deposit rate stands at 2.0 percent, creating room for banks to offer more competitive returns on deposits.

The Catch: Conditions and Limitations

While the headline rate is attractive, the offer comes with significant restrictions. The higher rate applies exclusively to monthly savings accounts (“maandspaarrekeningen”) with a maximum deposit of EUR 500 per month (EUR 600 at Belfius). Classic, unlimited savings accounts at KBC remain at just 0.60 percent.

Pascal Paepen, professor of Banking and Investing at KU Leuven, noted that holders of these high-interest accounts “are often young, price-conscious, and critical savers who compare. Such savers become investors sooner or later, and a bank doesn’t want to lose them.”

Chris Sugira also highlighted a structural risk: “A higher fidelity premium always applies for 12 months from the moment you deposit the money. The base rate, on the other hand, can be lowered by the bank at any time. If financial markets cool down, they can screw that nice base rate back down in one stroke of the pen.”

The Classic Account Divide

Belgians hold over EUR 300 billion in savings accounts nationwide, yet the vast majority of this money sits in classic accounts earning minimal interest. KBC’s classic savings account offers just 0.60 percent (0.40 percent base rate plus 0.20 percent fidelity premium). The average savings rate across all Belgian banks is approximately 1.33 percent.

According to Nieuws365.be, banks have little incentive to raise rates on classic accounts because Belgian savers are notoriously reluctant to switch banks. “The banks know that the Belgian saver is like a snail: he doesn’t move quickly,” Sugira said. “So why would they offer more interest?”

A Smart Saver Strategy

For disciplined monthly savers, the new rate offers meaningful returns. Saving EUR 500 per month at 3.15 percent would yield approximately EUR 102 in interest in the first year. Additionally, customers can transfer up to EUR 1,500 per year from their regular savings account to the higher-interest account without losing their accrued fidelity period, as long as they transfer at least EUR 500 per transfer, maximum three times per year.

Interest earned on regulated savings accounts up to EUR 1,020 per person (EUR 2,040 for married or legally cohabiting couples) remains tax-exempt from the 15 percent withholding tax in fiscal year 2026.

Outlook

Smaller banks are expected to follow the rate increases to remain competitive. However, the rate environment depends heavily on ECB policy. If inflation remains persistent and ECB rates stay elevated, savings rates may continue to rise. If the ECB cuts rates, banks could quickly reduce the base rate component.

The gap between high-interest monthly savings accounts and classic accounts is likely to persist, as banks have little incentive to narrow it. For now, KBC’s move to 3.15 percent marks a new high in the Belgian savings rate war, but savers should carefully read the fine print before switching.