A study by the Netherlands Authority for Consumers and Markets (ACM) has found that the low savings rates for consumers in the Dutch market are largely due to insufficient competition among major banks, including ABN Amro, ING, and Rabobank. The dominance of these banks results in a lack of competitive pressure to increase rates, potentially leading to consumer harm.

ACM's provisional report suggests that lowering switching barriers for consumers could enhance competition in the savings market. The report, now open for consultation, recommends measures to make it easier for consumers to switch banks and benefit from higher savings rates.

The study indicates a possible 'tacit coordination' among major banks regarding savings rates, where banks closely monitor each other's rates instead of competing. While not illegal, this behavior resembles cartel-like effects, ultimately disadvantaging consumers by offering lower interest rates.

The lack of competition is attributed to consumer satisfaction with current banks, limited awareness of alternative products, and preferences for major Dutch banks. Switching barriers, such as complex product structures and mandatory tying of accounts, further hinder consumer mobility in the market.

ACM lacks the authority to directly address the competition issues in the savings market, emphasizing the need for legislative intervention. Recommendations to boost competition include enhancing transparency in information provision, prohibiting tying of checking and savings products, and implementing a mandatory switching service for banks.