Frankfurter Volksbank plant Negativzins

Now the Frankfurter Volksbank wants to ask new customers to pay when they park their money at the institute. A consequence of the ECB’s continued expansionary monetary policy.

It's getting more expensive: Frankfurter Volksbank is planning a negative interest rate.

Dhe Frankfurter Volksbank plans to charge negative interest rates for deposits from the first cent. According to information from the FAZ, the institute plans to charge new customers a so-called custody fee of 0.55 percent for deposits from March next year. This regulation should apply without a tax exemption, i.e. for every sum. Existing customers should therefore soon pay negative interest on amounts that are higher than 500,000 euros, from March 2020 this tax exemption should decrease to 250,000 euros. The bank let it be known that negative interest rates are not legally permitted, especially for savings books, and are therefore not charged.

The Frankfurter Volksbank also announced that the European Central Bank has been pursuing a sustained negative interest rate policy for five years. “In this situation, we are also considering whether we can keep our previous approach to calculating custody fees.” The institute, on the other hand, did not want to comment on the specific increase in fees from March 2020.

From the direct competitor, Frankfurter Sparkasse, it was said that currently only large corporate and institutional customers have to pay custody fees on high, short-term deposits in the order of around 500,000 euros and this “successively on medium-sized deposits from corporate customers and on large deposits from private customers “Will be expanded. There are already some new customers who pay these fees, said a spokeswoman. However, they continue to stand by the statement “that we want to avoid the introduction of custody fees on a broader basis as long as possible”.