Rabobank third Dutch bank to charge negative interest on large savings accounts

Rabobank customers with more than 1 million euros in their savings accounts will soon have to pay to keep their money in the bank. The bank is implementing a savings interest rate of -0.5 percent on savings accounts with more than a million euros as of July 1st or private customers, and as of May 1st for business customers, RTL Nieuws reports.

According to Rabobank, this step is necessary due to the continuing low interest rate. Private customers with less than a million euros in their savings accounts will keep receiving 0.01 percent interest for the time being. Business customers already have an interest rate of 0 percent on savings between 100 thousand euros and 1 million euros.

The negative interest rate will affect around 400 private customers and 6,600 business customers, Rabobank said. The bank will try to keep paying interest to customers with less than a million euros in their savings, "but unfortunately, given the constant low interest rates, cannot guarantee this," Rabobank said.

Rabobank is the third Dutch bank to implement negative interest on large savings accounts. ING announced the exact same measure on January 31st. As of July 1st, ING customers with more than 1 million euros in their savings accounts will have an interest rate of -0.5 percent. At ABN Amro, this applies to customers with more than 2.5 million euros in their savings accounts. ABN Amro customers with less than 2.5 million euros in the bank have an interest rate of 0 percent.