The rate hike announced by the ECB prompts financial institutions to think. “Storage charges” on high bank balances may soon become a thing of the past for many customers.
German bank customers can count on the end of negative interest rates on overnight and overnight accounts as part of the interest rate hike announced by the European Central Bank (ECB) for July.
“The amount of the deposit fee is based on the so-called deposit at the end of the day of the European Central Bank. If the ECB raises its end-of-day deposit rate by 0.25 percentage points, as recently announced in July, Deutsche Bank and Postbank will pass this adjustment on to their retail customers and will increase the custody fee by 0.25 percentage points 0.25 percentage points in the short term “- said the spokesman of the largest German financial institution on Monday.
The Governing Council of the ECB made a decision on Thursday to raise key interest rates in the euro area by 0.25 percentage points at its next meeting on July 21. In September, a “bigger step in the interest rate” is then possible. Currently, banks still have to pay 0.5 percent. interest when they deposit funds with the ECB. Many institutes transfer costs to their customers.
Complete release planned from October
“If the deposit rate is raised to zero or positive in the second step, we will no longer charge the deposit fee in retail banking,” a spokesman for Deutsche Bank said. “The ECB’s second step is expected in September, so Deutsche Bank and Postbank are expected to completely abolish the deposit fee for their retail customers in October.”
From mid-May 2020, Deutsche Bank charges the so-called fiduciary fees in their activities for individual clients. Currently, customers there have to pay negative interest from 50,000 euros on current and investment accounts and from 25,000 euros for overnight cash. It is the same with Postbank, which belongs to the Deutsche Bank Group.
Commerzbank still does not specify when it will lower the custody fees for clients with large deposits. The bank is waiting for further ECB decisions, a spokesman for the Frankfurt institute said on Monday. Commerzbank chief Manfred Knof said in mid-May: “If the ECB reacts, we can and will react quickly.”
ING Germany’s direct bank moved forward on May 10 and committed to ending negative interest rates for almost all of its private clients by July 1. According to the comparison portal Verivox, at least 451 of the approximately 1,300 banks assessed in Germany are currently demanding negative interest rates from private customers (as of June 8, 2022). The Biallo website has up to 582 banks and savings banks that charge negative interest from individual customers (as of June 9, 2022). (dpa)