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Bank Introduces Negative Interest Rates on Savings Accounts

The Thuringian Skatbank in Germany has introduced a negative interest rate on high savings balances. This means customers with particularly high savings in their accounts will have to pay for the privilege rather than earn interest on it.

Legalised robbery?

According to www.t-online.de website:

The Thuringian Skatbank has a negative interest rate introduced on particularly high savings balances – as probably the first bank in Germany for private clients. From November amounts on deposit accounts of more than 500,000 euros were affected, said an employee of the financial institution. Above this threshold were already so far no interest has been paid more, the future will be due a negative interest rate of 0.25 percent.

This step was justified by the interest rate policy of the European Central Bank. Below 5,000 euros pays the Skatbank no interest. For higher amounts to 500,000 euros, there is 0.1 percent.

Thuringian Skatbank

The Thuringian Skatbank has a negative interest rate introduced on particularly high savings balances

At the moment this will only affect those who have savings of 500,000 euros or above. However, does this set a precedent for other European banks to do the same? We’ll be keeping an eye on this story and updating you as it progresses. Please comment below.