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Savings banks, Volksbanks and Co.: These banks now want to forgo penalty interest

2022-05-10T15:16:25.915Z


Savings banks, Volksbanks and Co.: These banks now want to forgo penalty interest Created: 05/10/2022 17:06 By: Lisa Mayerhofer Some savings banks also want to remove the penalty interest if the ECB changes its monetary policy. (Iconic image) © Michael Gstettenbauer/imago Many banks charge penalty interest on the savings of their customers. But that could change if the European Central Bank ch


Savings banks, Volksbanks and Co.: These banks now want to forgo penalty interest

Created: 05/10/2022 17:06

By: Lisa Mayerhofer

Some savings banks also want to remove the penalty interest if the ECB changes its monetary policy.

(Iconic image) © Michael Gstettenbauer/imago

Many banks charge penalty interest on the savings of their customers.

But that could change if the European Central Bank changes interest rate policy, as a survey shows.

Frankfurt – ING Germany is the first – and heralds a trend reversal at German banks and credit institutions: According to the direct bank, the so-called negative interest rates are abolished for a large part of its private customers.

Penalty interest: ING Germany changes regulations

On July 1, ING Germany will increase the allowances for credit balances on current and call money accounts, for which no custody fee is due, from the current 50,000 to 500,000 euros per account, as the institute announced on Tuesday.

The reason for this is the positive trend in interest rates on the capital markets and the first signals from the European Central Bank (ECB) to change monetary policy.

In view of the record inflation in Europe, a first rate hike in July is increasingly likely.

Currently, banks have to pay 0.5 percent interest when parking money at the ECB.

Numerous financial institutions pass this interest on to private customers from a certain sum on the account.

Economists expect that the ECB will probably raise the negative deposit rate to zero percent in several steps this year.

This means that the banks no longer have any reason to demand penalty interest from their customers.

Savings banks, Volksbanks and Co.: Which banks want to remove penalty interest

According to a survey by the information portal biallo.de, if the ECB adjusts its interest rate policy, at least 17 other banks want to eliminate negative interest rates:

  • Commerzbank

  • Deutsche Bank



    German Pharmacist and Medical Bank

  • Dortmund Volksbank

  • Frankfurter Sparkasse

  • Frankfurt Volksbank

  • Hamburger Sparkasse

  • Central Brandenburg Savings Bank

  • nassauische savings Bank

  • Ostsächsische Sparkasse Dresden

  • Sparkasse Hanover

  • Sparda Bank Munich



    Sparda Bank Southwest

  • Sparda Bank West

  • Sparkasse Pforzheim Calw

  • Volksbank Stuttgart

  • Volksbank Mittelhessen

Deutsche Bank, which has been charging custody fees in retail banking since mid-May 2020, said on request: “If the ECB changes the deposit facility rate, we will adjust the fee in retail banking at short notice.”

If the deposit rate is zero or higher, the institution will waive it entirely.

Germany's largest money house is currently charging negative interest from 50,000 euros on current and investment accounts and from 25,000 euros for overnight money.

At Commerzbank it said: "We are taking a close look at the development and will react if the rising interest rates prove to be sustainable."

Savings banks: Local institutes decide on negative interest rates

The Savings Banks and Giro Association (DSGV) stated that the market would react to changing conditions.

The local institutes would decide when and in what form.

The Federal Association of German Volksbanken and Raiffeisenbanken (BVR) pointed out that each institute decides on products and conditions itself.

According to data from the comparison portal Verivox, at least 455 of around 1,300 banks evaluated are currently charging private customers negative interest rates (as of May 10, 2022).

At least 179 money houses therefore limit the allowance for the total deposit per customer to 50,000 euros or less.

Biallo even comes up with 582 banks and savings banks that collect negative interest from private customers.

However, some somewhat less prominent institutes have already increased the allowances.

(lma/dpa)

Source: merkur

All news articles on 2022-05-10

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