"Savers are the ones who suffer": Savings banks with urgent warning to customers

Created: 03/19/2022, 11:00 am

By: Lisa Mayerhofer

The savings banks are defending themselves against the criticism of negative interest rates (symbol image).

© Michael Gstettenbauer / Imago

The savings banks defend themselves against the criticism of the negative interest rates - and point to the growing inflation.

They have an urgent warning for their customers

Munich – The savings banks* are currently under attack.

Consumer advocates and customers are going to court over the negative interest rates that many banks are charging their customers' deposits.

And they are partly right there.

However, the banks are defending themselves against the allegations of illegally levying the so-called custody fees: the savings banks attribute the negative interest rates to the monetary policy of the European Central Bank (ECB).

The ECB is asking banks to deposit interest rates of minus 0.5 percent.

Many banks pass this on directly to their customers.

Savings banks warn customers of high inflation

“According to the forecast, the victims are now also the savers.

The savings banks have shielded customers from custody fees for seven to eight years,” complains Association Managing Director Wolfgang Zender from the East German Savings Banks Association.

However, no bank can permanently level away monetary policy requirements.

“The ECB heard* our warnings, evaluated them and ignored them.”

The association's executive president, Ludger Weskamp, ​​is also concerned about the central bank's monetary policy.

“Inflation is high.

The ECB accepts that savings, pensions and wages will continue to be devalued and that the standard of living will become a challenge for many.”

The vast majority of thrift customers are overburdened, have modest savings and income, and therefore have little money to put away.

"You don't just put away the loss of purchasing power," said Weskamp.

There are still too many customers who park their money in current accounts.

"We have been warning of this very situation for many years," Zender explained.

Bavarian savings banks defend themselves against allegations

The Bavarian savings banks also vehemently defend themselves against the accusation of overburdening their customers with negative interest rates.

Private customers of the Munich Sparkasse paid 2.5 million euros in “custody fees” last year for 11 billion euros in sight deposits on the current accounts, said Ralf Fleischer, the head of the Munich Sparkasse*.

"This year, however, these 11 billion will be worth 440 million less because of inflation."