Fun

80 Banks Charge Negative Interest Rates as Crisis Deepens in Germany

News Feed - 2020-04-13 05:04:17

80 Banks Charge Negative Interest Rates as Crisis Deepens in Germany


Amid the coronavirus pandemic and deepening financial crisis, the number of banks charging customers negative interest rates in Germany has accelerated. At least 80 banks now reportedly charge negative interest rates, 16 of which apply this policy to even small deposits.


Also read: IMF Declares Global Recession, 80 Countries Request Help, Trillions of Dollars NeededIncreasing Number of Banks Charging Negative Interest Rates in Germany


The Germany banking sector is facing a tough time as the number of covid-19 cases continues to surge. New data released by the European Central Bank (ECB) last week shows that banks in the eurozone were already suffering from declining profitability even before the coronavirus crisis, with German banks being the least profitable.


Throughout it all, banks in Germany are increasingly charging customers negative interest rates. According to consumer product comparison portal Verivox, 80 banks have published negative interest rate policies on their websites or price lists. This represents a significant increase from the 41 banks that were charging negative interest rates in February, as news.Bitcoin.com reported. Verivox Managing Director Oliver Maier commented:In the coronavirus crisis, the trend towards negative interest rates accelerated noticeably.List of 80 banks in Germany that are charging negative interest rates, according to consumer product comparison portal Verivox.


In addition, the media has reported that 22 other banks in Germany have announced that they are charging some customers negative interest rates but have not published their policies online, Verivox detailed.


By examining about 800 banks in Germany, the comparison portal found that most of the 80 banks that are charging negative interest rates do so to large accounts, but 16 of them also apply the negative rate policy to deposits below 100,000 euros ($109,295). This number has doubled from February when only seven banks applied negative rates to small accounts. Different banks have different policies on what specifically they are charging, which are often shown in their account terms and conditions.ECB Negative Rate Policy and Banks Charging New Customers


The ECB has held its main deposit rate at a historic low of -0.5%. The European Central Bank rolled out negative rates in 2014 for 19 countries in the eurozone to boost business and consumer lending in an effort to spur economic growth. However, the policy has dragged on, forcing some banks to pass on the burden of negative interest rates to their customers.Banks in Germany cannot charge negative interest rates to existing customers without their expressed consent due to a court ruling. However, they can charge new customers.


Due to a court ruling in June 2018, banks in Germany can only apply negative interest rates to new customers, not existing ones. The court case involved Volksbank Reutlingen, a bank in the southwestern state of Baden-Württemberg, which sought to impose a -0.5% interest on existing checking and many savings accounts exceeding €10,000, alongside normal fees.


Since the bank did not provide any additional service in exchange for the penalty rate, the judge ruled that the double pricing of an identical service unreasonably disadvantages customers and is therefore inadmissible. However, the ruling only applied to existing accounts, so banks can apply negative rate policies to new accounts.


What do you think about 80 banks in Germany charging negative interest rates? Let us know in the comments section below.Crypto Exchanges See Bitcoin Reserves Drop by 70% Since Black Thursday"s Market RoutNEWS | 7 hours ago


Since the market carnage on March 12 otherwise known as Black Thursday, the exchange Bitmex has seen 36% of the… read more.JPMorgan, Bank of America, Deutsche Bank Predict Major RecessionNEWS | 1 day ago


Big banks are predicting a major recession, the deepest one in the post-war era. JPMorgan Chase CEO Jamie Dimon said… read more.Tags in this storybanks, banks charge, charging negative interest rates, Coronavirus, COVID-19, Crisis, crypto, Cryptocurrency, ECB, Europe, european, euros, german, german banks, Germany, negative interest, negative interest rate, Negative Interest Rates, negative rate, negative rates, pandemic, which banks


Image Credits: Shutterstock, Pixabay, Wiki CommonsPurchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here.Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimer Show comments Please enable JavaScript to view the comments powered by Disqus.

News Feed

Foundry Academy Launches Training Program to Produce Top Technicians for BTC Mining Industry
Foundry Academy Launches Training Program to Produce Top Technicians for BTC Mining Industry Foundry Digital, a digital asset mining and a staking-focused subsidiary of Digital Ass
Marcel Pechman3 hours agoBNB’s soaring futures open interest and regulatory woes weigh on the altcoin’s pricePersistent regulatory actions and concerning derivatives data are likely the main factors behind BNB’s be
Indian Crypto Boom: Exchanges See 10X Trading Volumes During Lockdown
Indian Crypto Boom: Exchanges See 10X Trading Volumes During LockdownIndia’s cryptocurrency sector is booming during the extended nationwide lockdown. Several Indian cryptocur
NBA Extends Partnership With Meta to Bring Basketball Games to the Metaverse
NBA Extends Partnership With Meta to Bring Basketball Games to the Metaverse The NBA has extended its current partnership with Meta to broadcast its games to the metaverse. The com
Bitcoin, Ethereum Technical Analysis: BTC, ETH Lower, as Both Run Into Strong Resistance
Bitcoin, Ethereum Technical Analysis: BTC, ETH Lower, as Both Run Into Strong Resistance Bitcoin remained close to a ten-day high on Monday, as prices consolidated following gains
Aethir, MetaGravity partnership boosts scalable DePIN gaming development
Josh O"Sullivan10 hours agoAethir, MetaGravity partnership boosts scalable DePIN gaming developmentThe partnership aims to simplify and scale gaming development using DePIN technology, enhancing accessibility and efficie
Review: Crypto.com’s Ruby Steel Prepaid Visa Card
Review: Crypto.com"s Ruby Steel Prepaid Visa CardA number of members in the cryptocurrency community, typically people who are paid in crypto assets, have tried a myriad of prepaid
Mike Sarvodaya9 hours agoFormer Coinbase exec posits blockchain-driven vision of future societiesAttendees of the Network State Conference in Amsterdam believe that a new tomorrow is possible with decentralized technolog
LBank and Adanian Labs Kickstarts a ‘Crypto Accelerator Program’ in Kenya
LBank and Adanian Labs Kickstarts a ‘Crypto Accelerator Program’ in Kenya press release PRESS RELEASE.The blockchain ecosystem is growing exponentially. It has brought prosperit
What needs to happen for Ethereum (ETH) price to reach $4K?
Marcel Pechman1 hour agoWhat needs to happen for Ethereum (ETH) price to reach $4K?Ethereum’s Achilles heel is institutional adoption, scalability, and sustainable DApp ecosystem growth.743 Total views1 Total sharesLis
India Surpasses UK as World’s 5th Largest Economy Based on IMF Data
India Surpasses UK as World"s 5th Largest Economy Based on IMF Data India is now the world’s fifth-largest economy after surpassing the U.K., the latest data from the Intern
Peter Schiff’s Euro Pacific Bank Suspended by Puerto Rico’s Regulator — Schiff Insists No Evidence of Crime
Peter Schiff"s Euro Pacific Bank Suspended by Puerto Rico"s Regulator — Schiff Insists No Evidence of Crime Peter Schiff-owned Euro Pacific Bank has been suspended by Puerto Rico