Negative interest rates for wealthy private customers

So far, the majority of the savings banks have argued that they should not have negative interest rates for private customers. Now one of the largest savings banks is introducing exactly this for its customers.

Nassauische Sparkasse, one of the largest savings banks in Germany, is introducing negative interest rates for private customers with very large savings deposits.

Dhe Nassauische Sparkasse (Naspa) in Wiesbaden, one of the largest savings banks in Germany, is introducing negative interest rates for private customers with very large savings deposits. A spokeswoman for the Sparkasse confirmed corresponding information from the FAZ on Monday. As of July 1, a negative interest rate of 0.4 percent is to be introduced for private customers with deposits of more than EUR 500,000 on current and overnight accounts. Apparently there are such things at the institute:

Wiesbaden is known for the fact that there is a lot of “old money” there. According to the institute, a “low three-digit number” of customers is affected. “Of course, we offer customers alternative investments that mean that no custody fee has to be paid,” said the spokeswoman.

So far, the German Savings Banks and Giro Association (DSGV) and the savings banks had predominantly argued that they should not have negative interest rates for private customers. However, not all institutes seem to handle this quite consistently. “Other savings banks introduced custody fees before us,” said the Naspa spokeswoman.

The Deutsche Bundesbank published a survey some time ago, according to which around 50 percent of banks and savings banks in Germany are now charging negative interest rates; Most of them, however, only from corporate customers, but at least around 12 percent also from private customers – but then usually only for very large deposits.

Charges on large deposits from private customers

It is possible that the latest signals from the European Central Bank (ECB) for a very loose monetary policy at one or the other bank will give one more impetus to think about negative interest rates for private customers as well. Frankfurter Sparkasse, one of Naspa’s neighbors, had already reported that it was “gradually” expanding its existing custody fees for large corporate customers and institutional investors to include large deposits from private customers of around EUR 500,000. Talks are being held with the relevant customers.

According to a spokesman, the Taunus-Sparkasse in Bad Homburg, partly also a competitor of the Naspa in the Frankfurt area, is currently not planning negative interest rates for private customers with large deposits. The Frankfurter Volksbank, however, differentiated: “The Frankfurter Volksbank currently does not charge any custody fees in the traditional private customer business,” said a spokesman. “We agree a custody fee with private investors who have an institutional character, such as notaries, and at the same time have high investment sums in the current account area.” This also applies to interested parties who only want to “park” higher investment amounts in the current account or fixed-term deposit area.