![\"300](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2020\/11\/negative-rates-768x432.jpg\")
<\/p>\n<\/p>\n
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.<\/strong><\/p>\n 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.<\/p>\n A German financial product comparison portal, Biallo, conducted a study on 1,300 banks and savings banks in Germany. It found that \u201cMore than 300 financial institutions charge some of their customers negative interest,\u201d 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.<\/p>\n Biallo founder Horst Biallo described:<\/p>\n 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.<\/p>\n<\/blockquote>\n He explained that \u201cBanks and savings banks usually avoid the terms \u2018negative interest\u2019 or \u2018penalty interest,’\u201d adding that \u201cthey prefer to speak of the so-called custody fee.\u201d<\/p>\n While noting that more banks are charging their business and corporate customers negative interest rates than they do private customers, Biallo emphasized that \u201cThis year alone, more than 150 banks and savings banks introduced negative interest rates for private customers.\u201d 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\u2019 consent for imposing negative interest rates on existing accounts.<\/p>\n Among global banks on the Biallo\u2019s 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.<\/p>\n Other banks on the Biallo list include Bank 1 Saar, Berliner Sparkasse, Brandenburger Bank, Bremische Volksbank, Eckernf\u00f6rder Bank, Erfurter Bank, Kasseler Sparkasse, M\u00fcnchner Bank, Raiffeisenbank Eifeltor, Sparkasse Aachen, Sparkasse Landshut and more. Bank 1 Saar charges -0.75% on accounts over 100,000 euros \u2014 the highest penalty rate charged by any bank.<\/p>\n<\/p>\n 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\u2019s 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.<\/p>\n 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 \u201cshall agree on the application of these special conditions and the obligation to pay the custody fee separately with the customer.\u201d<\/p>\n 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.<\/p>\n The Association of German Banks, the main lobby group for Germany\u2019s 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.<\/p>\n What do you think about banks charging negative interest rates? Let us know in the comments section below.<\/strong><\/em><\/p>\n The post 300 Banks in Germany Charge Negative Interest Rates Including Deutsche Bank, Commerzbank, ING<\/a> appeared first on Bitcoin News<\/a>.<\/p>\n300 Banks Pass on the Burden of Negative Interest Rates to Customers<\/h2>\n
\n
Big Banks Imposing Negative Interest Rates<\/h2>\n