Fun

300 Banks in Germany Charge Negative Interest Rates Including Deutsche Bank, Commerzbank, ING

News Feed - 2020-11-16 07:11:48

300 Banks in Germany Charge Negative Interest Rates Including Deutsche Bank, Commerzbank, ING


A new report reveals that more than 300 banks in Germany are now charging some customers negative interest rates. Some are big global banks, including Deutsche Bank, Commerzbank, and ING. 300 Banks Pass on the Burden of Negative Interest Rates to Customers


Banks in Germany have been increasingly passing on the burden of negative interest rates to their clients after the European Central Bank (ECB) adopted a negative interest rate policy. After lowering one of its key interest rates into negative territory in June 2014, the ECB then lowered the deposit facility rate incrementally until it reached the current rate of -0.5% in September 2019.


A German financial product comparison portal, Biallo, conducted a study on 1,300 banks and savings banks in Germany. It found that “More than 300 financial institutions charge some of their customers negative interest,” the portal reported last week. Out of these banks, almost 200 of them impose negative interest rates on private customers. The rates and terms vary by bank.


Biallo founder Horst Biallo described: The wave of negative interest rates that is currently rolling towards savers is growing steadily. Almost 30 banks and savings banks have introduced a so-called custody fee since the beginning of October alone.


He explained that “Banks and savings banks usually avoid the terms ‘negative interest’ or ‘penalty interest,"” adding that “they prefer to speak of the so-called custody fee.”


While noting that more banks are charging their business and corporate customers negative interest rates than they do private customers, Biallo emphasized that “This year alone, more than 150 banks and savings banks introduced negative interest rates for private customers.” Each bank sets its own terms regarding which accounts are charged negative interest rates, with the most common type of accounts being those with balances above 100,000 euros ($118,353). Most banks also apply negative interest rates to new accounts as German law requires customers’ consent for imposing negative interest rates on existing accounts.


Among global banks on the Biallo’s negative rate list are Comdirect, Commerzbank, DAB BNP Paribas, Deutsche Bank, DKB, Donner und Reuschel, Ethikbank, Fidor Bank, Flatex Bank, GLS Bank, ING, Norisbank, and Postbank. Most of them apply a -0.5% interest rate on accounts with balances over differing amounts.


Other banks on the Biallo list include Bank 1 Saar, Berliner Sparkasse, Brandenburger Bank, Bremische Volksbank, Eckernförder Bank, Erfurter Bank, Kasseler Sparkasse, Münchner Bank, Raiffeisenbank Eifeltor, Sparkasse Aachen, Sparkasse Landshut and more. Bank 1 Saar charges -0.75% on accounts over 100,000 euros — the highest penalty rate charged by any bank.


Big Banks Imposing Negative Interest Rates


Some of the largest banks in Germany have also introduced negative interest rates. The latest major bank to do so is ING. According to the bank’s list of prices and services, a custody fee of 0.5% will be charged starting on Feb. 1, 2021, for current accounts opened after Nov. 4 if they have balances of over 100,000 euros.


Deutsche Bank has already been charging some clients a custody fee of 0.5% on current accounts with balances above 100,000 euros. In its terms of service, Deutsche Bank wrote that it “shall agree on the application of these special conditions and the obligation to pay the custody fee separately with the customer.”


Commerzbank introduced a custody fee of 0.5% for deposits of over 250,000 euros at the end of the 2019 financial year. Biallo noted that a negative interest rate applies to accounts opened after July 1 and the deposit threshold was lowered on Oct. 1 to 100,000 euros.


The Association of German Banks, the main lobby group for Germany’s financial sector, recently called on the ECB to reconsider its negative interest rate policy. Hans-Walter Peters, the president of the association, warned that more banks will be forced to charge their customers negative interest rates.


What do you think about banks charging negative interest rates? Let us know in the comments section below. Hash Watch: The Highly Anticipated Bitcoin Cash Fork Is Now Complete NEWS | 9 hours ago Ripple Forced To Rebrand PayID Trademark After Copyright Infringement Lawsuit NEWS | 20 hours ago Tags in this story banks germany, banks negative rates, commerzbank negative rates, deutsche bank negative rates, german banks, ing negative rates, Negative Interest Rates


Image Credits: Shutterstock, Pixabay, Wiki Commons Use Bitcoin and Bitcoin Cash to play online casino games here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement 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 disclaimerShow comments

News Feed

Turner Wright2 hours agoUS lawmakers urge IRS to implement crypto tax reporting requirements before 2026The crypto tax reporting requirements proposed by the IRS in August are currently scheduled to go into effect in 202
Bitcoin halving ‘blood bath’ could push US miners offshore
Brayden Lindrea1 hour agoBitcoin halving ‘blood bath’ could push US miners offshoreHashlabs Mining co-founder and chief mining strategist Jaran Mellerud said Ethiopia, Nigeria, Kenya, Argentina and Paraguay could pic
Queensland law enforcement agency calls for more powers to seize crypto
Arijit Sarkar12 hours agoQueensland law enforcement agency calls for more powers to seize cryptoThe Crime and Corruption Commission is calling for a reform of Queensland’s Criminal Proceeds Confiscation Act 2002 to cou
Kraken Charged by CFTC Over Margined Crypto Transactions, $1.25 Million Penalty Imposed
Kraken Charged by CFTC Over Margined Crypto Transactions, $1.25 Million Penalty Imposed The Commodity Futures Trading Commission (CFTC) has charged Payward Ventures, the operator o
President Biden says he would veto resolution countermanding SEC crypto rule
Turner Wright3 hours agoPresident Biden says he would veto resolution countermanding SEC crypto ruleAfter the U.S. House of Representatives postponed proceedings on a resolution overturning an SEC policy affecting crypto
Corporate adoption is in ‘amateur league’ despite Bitcoin ETFs
Zoltan Vardai12 hours agoCorporate adoption is in ‘amateur league’ despite Bitcoin ETFsCorporations could pave the way toward more mainstream crypto industry trust, according to the co-founder of Trust Square.3229 To
Sports Illustrated Awards Sweepstakes Sponsored by FTX to Give Away 1 Bitcoin
Sports Illustrated Awards Sweepstakes Sponsored by FTX to Give Away 1 Bitcoin The annual Sports Illustrated (SI) Awards have just revealed the line-up for the firm’s 2021 aw
XRP To Maintain Price Rally As Whales Reload Amidst Price Dip- Details
Este artículo también está disponible en español. In the last week, the price of XRP increased by 35% as the general crypto market maintains a stellar performance stretch
Bitcoin fees top Ethereum for 3 days in a row as halving approaches
Brayden Lindrea8 hours agoBitcoin fees top Ethereum for 3 days in a row as halving approachesTransaction fees will play an important role in keeping Bitcoin miners afloat after the halving as the subsidy for mining a blo
Elon Musk Hints Twitter Will Integrate Crypto Payments if His Takeover Bid Is Successful
Elon Musk Hints Twitter Will Integrate Crypto Payments if His Takeover Bid Is Successful Tesla CEO Elon Musk has suggested integrating crypto payments into Twitter. “My goal
XRP Price Range-Bound: Can It Break Out or Stay Stuck?
Este artículo también está disponible en español. XRP price is moving higher from the $0.5250 support. The price could gain bullish momentum if it clears the $0.5450 and
Biggest Movers: QNT Extends Recent Gains, Climbing by 10% on Saturday
Biggest Movers: QNT Extends Recent Gains, Climbing by 10% on Saturday Quant moved higher for a second straight session on Saturday, as prices rose by as much as 10%. The move sees