The turnaround in interest rates is reaching consumers

BIt is particularly noticeable with negative interest rates. It's been eight years since the former ECB President Mario Draghi had introduced that banks had to pay for their deposits with the central bank - whereupon many banks began to demand money from savers in return for allowing them to use their savings for a period of time. The central bank has now raised its deposit rate for banks in two steps, from minus 0.5 to plus 0.75 percent. And the banks' negative interest rates for their customers will disappear in return, with very few exceptions.

The consumer portal Biallo counted 582 banks with negative interest rates, custody fees and credit card fees at the peak of this phenomenon in Germany, which was so unpleasant for savers. Now there are just six institutes left. And of those, for example, has the GLS Bank in Bochum promised to abolish it at the turn of the year.

Immediately higher fixed deposit rates

The turnaround in interest rates is picking up speed. ECB President Christine Lagarde had announced on Thursday that the central bank would carry out the largest interest rate hike since the introduction of euro cash by 0.75 percentage points. Specifically, she raised the so-called main refinancing rate, at which banks can borrow money from the central bank, from 0.5 to 1.25 percent. The prime lending rate, at which banks can borrow money overnight, rose from 0.75 to 1.5 percent.

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And the deposit rate that banks pay for their deposits with the central bank rose from 0 to 0.75 percent. The deposit interest rate was particularly responsible for the abolition of negative interest rates for savers - while the main refinancing rate is considered the actual key interest rate for monetary policy.

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