Categories
Health

ING direct bank introduces negative interest rates for large balances | Free Press

Anyone who wants to store a lot of credit at ING will have to pay for it in the future. However, the regulation does not apply to all customers.

Frankfurt / Main (dpa) – ING direct bank introduces negative interest rates for high savings deposits. For new checking accounts, basic and one day, there will be a custody fee of 0.5 percent for balances greater than 100,000 euros from February 2021, according to the institute’s website.

The change applies to accounts that are opened as of this Wednesday (November 4). Nothing will change for existing accounts, emphasized an ING spokesperson in Frankfurt. There are currently no plans to lower the 100,000 euro tax exemption.

Commercial banks have to pay 0.5 percent interest when they deposit surplus funds with the European Central Bank. Even if there are tax breaks for certain sums, that is still a billion dollar burden on the industry. More and more financial institutions pass on costs and charge clients negative interest, sometimes from the first euro. According to the comparative portal Verivox, 149 banks and savings banks show negative interest rates for private clients in their price lists. Of these, 38 institutes granted less than 100,000 euros of exemption, 5 demanded negative interest of the first euro, he said.

ING CFO Norman Tambach had already told dpa in August that the bank reserved the right to react to this trend. However, the institute advertises alternatives for asset accumulation, such as free direct deposits and sometimes free ETF savings plans.