The time of negative interest rates for call money and the like is coming to an end

The time of negative interest rates for call money and the like is coming to an end

Die time of negative interest rates for per diem and Co. is nearing the end. Even before the expected first increase in key interest rates in the euro area in eleven years, at least 49 financial institutions have completely or partially abolished the so-called custody fee for private customers, according to an evaluation of around 1,300 banks and savings banks by the comparison portal Verivox. However, many are still waiting. In view of the rapid increase in inflation, times remain difficult for savers anyway.

According to the data, at least 426 credit institutions are still demanding negative interest from a certain sum on the call money or current account (as of July 14). “As soon as the central bank removes the penalty interest on bank deposits, the negative interest rates for savers will also disappear across the board,” expects Oliver Maier, Managing Director of Verivox Finanzvergleich GmbH. “A historic interest rate phenomenon is coming to an end.”

the European Central Bank (ECB) wants to raise key interest rates in the euro area by 0.25 percentage points at its meeting next Thursday in view of the record inflation. In September, the central bank held out the prospect of a further – possibly larger – rate hike. Banks still have to pay 0.5 percent interest if they park funds at the ECB. Many financial institutions pass the costs on to customers.

Banks make promises true

Several large institutions, including Deutsche Bank, have announced that they will reduce negative interest rates for their customers in line with the ECB’s decisions. According to Verivox, many banks and savings banks automatically reduce the negative interest rates in the event of an interest rate adjustment anyway, because they have expressly linked the custody fee to the ECB deposit rate. “If interest rates rise in the future, the business with savings deposits will become attractive again for the banks. The first institutes are already positioning themselves for this,” explained Maier.

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