More Banks Charge Negative Rates From First Euro
German banks are increasingly passing on the burden of negative interest rates to their retail clients from the very first euro deposited into their accounts. While it is not uncommon for banks in Germany to levy negative interest rates on their customers, most of them have refrained from charging retail clients, largely due to concerns of reputational damage. However, a regional bank close to Munich, Volksbank Raiffeisenbank Fuerstenfeldbruck, made headlines recently when it began charging all new clients -0.5% on their deposits from the first euro deposited. Since then, at least two more banks have followed suit.

Another bank, Kreissparkasse Stendal, has a similar policy for clients who have no other relationship with the bank. The bank explains on its website that it is charging a “deposit fee” on balances of 0.01 euro or more. Both Volksbank Raiffeisenbank Fuerstenfeldbruck and Kreissparkasse Stendal “levy the charges on new customers who open a type of savings account that allows for daily, unlimited withdrawals, a popular instrument among German savers,” Bloomberg detailed.

Sourced through Scoop.it from: news.bitcoin.com