ING starts charging negative interest for savings over € 100,000
ING customers with more than a hundred thousand euros in their account must pay a savings interest of 0.5% on this from 1 July. The bank will then lower the negative interest threshold from € 250,000 to € 100,000.
The negative interest applies to both business and private ING customers with more than € 100,000 in their accounts. ING emphasizes that the interest applies per account and not per customer. Spreading money over several (savings) accounts at the bank would thus offer another chance to escape the negative interest rate. On the other hand, there are higher costs per month for holding multiple accounts.
Those who have less than a hundred thousand in their bank accounts will continue to receive 0.01% interest for the time being, says ING. According to the bank, 97.8% of its own customers remain free from having to pay to save. ING says the persistent low market interest rates and the negative interest rate policy of the European Central Bank (ECB) are forcing the bank to lower savings rates. For example, ING has to pay the ECB to deposit savings that cannot be invested in loans for -0.5% in Frankfurt.
At Rabobank and De Volksbank, the threshold for paying for private savings is still € 250,000. ABN Amro charges negative interest from € 500,000.
In order to avoid costs, banks are now cutting the workforce and the number of offices significantly. Last month ING decided to close nearly 70 more branches in the country. Halving it to only 59 branches will cost a total of 440 ING employees their jobs.