High interest rates for savings – that was once. Many central banks around the world have cut interest rates to boost the economy. The European Central Bank (ECB) even requires banks to pay penalty interest if they hoard money at the central bank. This should make money houses to lend more loans.
First banks are passing on the negative interest rate to wealthy savers.
The case of the penalty interest of the French Bank has aroused great interest in the neighboring country. There are no penalties for private customers. Bank fees have risen again, however, after two years of decline, as an evaluation of the comparison portal panorabanques.com revealed. Minor interest rates threaten only companies in individual cases, such as when hoarding huge sums in bank accounts.
It is true that the Danish central bank is demanding even higher punitive rates from banks than the ECB. But, according to Bank, the largest in the country, banks are not passing them on to private customers. The institutes earn well on fees. With housing loans, some financial institutions are increasing the actual costs. This annoys the customers, but a storm of indignation has been missing.
Negative interest rates and rising fees do not affect savers. It is more likely to upset the crisis of domestic banks, which could cost them their savings. Many small savers have lent the banks money. But they are under pressure, as they have bad loans totaling 360 billion euros in their balance sheets. The government in Rome is negotiating with to what extent the banks can be supported.
After the vote, the Bank of England lowered its key interest rate to a record low of 0.25 percent. But the interest rate is still above the value in the Eurozone. Also, the central bank does not charge penalties from banks. Private customers are therefore spared, says spokesman for the Bank of England. “We do not know of any bank, especially none of the important ones who charge such fees.”
Banks are also forgoing negative interest rates for private customers – with one exception: since the beginning of the year, the comparatively small Alternative Bank based in Olten has calculated current account interest at 0.125 percent. Nevertheless, the bank was able to gain new customers. The AB is, however, with its often socially committed customers as a special case. Instead of maximizing profits, her declared goal is to promote environmentally friendly and social projects.
Bank has begun to charge, in special cases, deposits from corporate customers with negative interest rates. The newspaper “El Diario” wrote that she had “opened a Pandora box”. Negative interest rates for private customers are not (yet) an issue for Spanish banks. However, according to media reports, foreign banks penalty rates on private customers.
In the Far East, too, interest rates have fallen drastically. As part of the “Abenomics”, the economic policies of Prime Minister, monetary policy was loosened greatly in order to stimulate the flagging economy. Since January, banks there have also been forced to pay negative interest on some of the money they hoard at the central bank. Nevertheless, negative interest rates for savers are not widespread there.
The United States is dancing out of line. There, the central bank thinks more about an increase in key interest rates. Nevertheless, banks sometimes impose high hidden fees on banks. Payment transactions are not comparable to the intra-European system. Checks printed on paper and sent by post are still the norm. Customers have to pay about for their checkbook. Whose balance falls below a certain minimum amount – about $ 1,500 – will have to pay account fees. Relatively high amounts are also due for transactions abroad, especially in foreign currencies.