Negative interest rates on savings an unavoidable future: Report
5 years, 4 months ago

Negative interest rates on savings an unavoidable future: Report

NL Times  

Dutch consumers will start paying interest on their savings accounts in the near future, various analysts told Financieele Dagblad. The cash that Dutch banks keep and are required to deposit at the European Central Bank currently costs them more than half a billion euros per year, due to the negative deposit interest rate. The negative deposit interest rate already costs Dutch banks together 550 million euros per year. The deposit interest ABN Amro pays to EBN, for example, is 120 million euros per year. ING CEO Ralph Hamers recently mentioned negative interest on savings as an option to cushion the blow should ECB further reduce interest rates, resulting in a furious backlash from customers on social media.

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History of this topic

Savings rates in the Netherlands continue to decline
5 days, 16 hours ago

Savings rates in the Netherlands continue to decline

NL Times  

Savings account interest rates in the Netherlands saw a significant drop last year, according to a report by financial comparison platform Geld.nl. Data from the platform shows that the highest interest rate for freely accessible savings accounts dropped from 4 percent to 3 percent over the past 12 months. The ECB initially raised rates significantly to combat high inflation but …

Highest interest rates for fixed-term deposit savings falls below 4 percent
11 months ago

Highest interest rates for fixed-term deposit savings falls below 4 percent

NL Times  

Savers wanting to lock up interest rates for fixed-term deposit accounts will now receive a lower interest rate than before. The highest interest rate dropped back below 4 percent for savings accounts where money may not be accessed for a specified period of time. By lowering this interest rate, banks are signalling their anticipation that the European Central Bank will …

Rabobank raises savings account interest rate above 1 percent; First major Dutch bank
1 year, 7 months ago

Rabobank raises savings account interest rate above 1 percent; First major Dutch bank

NL Times  

Rabobank will increase the interest rates on savings accounts from 0.75 percent to 1 percent on June 1. But since the European Central Bank started hiking interest rates to try and temper the high inflation caused by the Russian war in Ukraine, the Dutch banks have raised savings interest rates several times. Earlier this month, Minister Sigrid Kaag of Finance …

Foreign banks attracting many Dutch savers with higher interest rates
2 years, 2 months ago

Foreign banks attracting many Dutch savers with higher interest rates

NL Times  

Foreign banks are attracting more and more Dutch savers with higher interest rates on savings accounts. Banks from Estonia, Italy, Germany, France, and Slovakia, among others, have seen a sharp increase in Dutch customers since the European Central Bank scrapped negative interest in July, NOS reports. But some foreign banks increased their interest rates more significantly, resulting in a difference …

Charities lost millions to banks charging negative savings interest
2 years, 5 months ago

Charities lost millions to banks charging negative savings interest

NL Times  

Negative interest rates banks imposed on savings accounts over the past 18 months cost Dutch charities about 2.3 million euros, NOS reports. “Certainly not if you compare that to the billions in profits they made last year.” The Salvation Army paid 301,000 euros in negative interest over the past 18 months, the Red Cross 250,000 euros, KWF Cancer Fund 231,000 …

ING ends negative interest rates on savings accounts
2 years, 7 months ago

ING ends negative interest rates on savings accounts

NL Times  

ING is the first large Dutch bank to scrap negative interest on savings accounts. From October, the interest rates for ING savers with more than 100,000 euros in their account will increase from -0.5 percent to 0 percent, the bank announced. The bank's announcement happened shortly after a new interest rate decision from the European Central Bank, NU.nl reports. The …

More ABN Amro clients to pay negative interest on savings
3 years, 2 months ago

More ABN Amro clients to pay negative interest on savings

NL Times  

From January 1, ABN Amro customers with more than 100,000 euros in savings will be charged negative interest. ABN Amro customers will have to pay 0.5 percent interest on the part of their savings that exceed 100,000 euros. ABN Amro, and other banks, have to keep part of their customers' savings at the European Central Bank, and they have to …

Persistent pandemic will delay economic recovery: Dutch Central Bank
3 years, 9 months ago

Persistent pandemic will delay economic recovery: Dutch Central Bank

NL Times  

The economy will recover more slowly than Dutch central bank DNB expected due to an extended and stricter lockdown. “Despite all good intentions, the Netherlands is not the best student in the European class when it comes to sustainability lessons.” Low-interest rates impact general public Another prediction that the DNB has for the future is that interest rates on savings …

Negative interest rates: what are they for and what would they mean for you?
3 years, 11 months ago

Negative interest rates: what are they for and what would they mean for you?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

Why negative interest rates could be on the way
4 years ago

Why negative interest rates could be on the way

The Telegraph  

Negative interest rates could be the key to boosting the economy out of the Covid recession, saving jobs and businesses on the way, according to a top Bank of England policymaker. Silvana Tenreyro set out a series of reasons why taking the base rate below zero could be “powerful” for financial markets and the economy, even though traditionally economists thought …

Negative rates may be needed to boost recovery, says Bank official
4 years, 2 months ago

Negative rates may be needed to boost recovery, says Bank official

The Telegraph  

Negative interest rates could soon be needed to boost the economy as the second Covid wave hits the recovery, a top Bank of England policymaker has indicated. Gertjan Vlieghe, a member of the Bank's Monetary Policy Committee, said growth was flagging and thus more stimulus could be on the way. The Bank has taken interest rates to a record low …

Negative interest rates could put an end to free banking, experts warn
4 years, 3 months ago

Negative interest rates could put an end to free banking, experts warn

The Telegraph  

Negative interest rates could spell the end of free bank accounts, experts warned after the Bank of England gave its clearest indication yet that the controversial policy could be introduced. Sir Philip Hampton, who was chairman of taxpayer-backed Royal Bank of Scotland at the height of the financial crisis, said: "In the case where negative rates are significant and prolonged, …

Rabobank to hit more customers with negative interest
4 years, 3 months ago

Rabobank to hit more customers with negative interest

NL Times  

Rabobank customers with more than 250 thousand euros in their current, savings and investor accounts will be charged an interest rate of -0.5 percent from 1 January 2021. This applies to both private and business customers, and the negative interest will apply to all credit above 250,000 euros, the bank announced on Wednesday, NU.nl reports. Customers who have less than …

Fed economists make the case for negative interest rates in the United States
4 years, 7 months ago

Fed economists make the case for negative interest rates in the United States

CNN  

New York CNN Business — The Federal Reserve will probably keep interest rates at zero when it meets this week. Researchers for the St. Louis branch of the Fed wrote in a report late last month that the combination of “aggressive fiscal and monetary policies is necessary for the United States to achieve a V-shaped recovery.” “Aggressive policy means that …

The Bank of England might end up paying you to borrow money
4 years, 7 months ago

The Bank of England might end up paying you to borrow money

Al Jazeera  

A banker, according to the ancient adage, is someone who lends you an umbrella when it’s sunny, and wants it back as soon as it starts to rain. After interest rates in Japan and parts of Europe turned negative, there is growing speculation that the United Kingdom’s central bank might also resort to cutting borrowing costs below zero to cushion …

Bank of England keeps negative interest rates under review
4 years, 8 months ago

Bank of England keeps negative interest rates under review

The Telegraph  

The Bank of England needs to take a balanced judgement of whether negative interest rates would help the economy to deal with the coronavirus crisis, according to its deputy governor. Ben Broadbent said cutting the base rate below zero, after it was reduced twice in March from 0.75pc to 0.25pc to 0.1pc to stem the “sharp and large” economic shock …

Rabobank third Dutch bank to charge negative interest on large savings accounts
4 years, 11 months ago

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

NL Times  

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 …

Negative savings interest to hit charities hard
4 years, 11 months ago

Negative savings interest to hit charities hard

NL Times  

Charities in the Netherlands fear that they will lose hundreds of thousands of euros per year to banks once negative interest rates on savings are implemented, Financieele Dagblad reports after speaking to four charities. The two largest Dutch banks, ING and ABN Amro, already announced that they will soon charge negative interest on large savings accounts, with amounts above 1 …

ING the second Netherlands bank to turn to negative savings interest
4 years, 11 months ago

ING the second Netherlands bank to turn to negative savings interest

NL Times  

Banking institution ING has become the second bank in the Netherlands to charge a negative interest rate on certain savings accounts. Customers will face a -0.50 percent interest rate for any amount in an account above one million euros, the bank said on Friday. That decision was expected to hit about 5,200 account holders ING was lambasted for even suggesting …

ABN Amro lowers savings interest to 0%
5 years ago

ABN Amro lowers savings interest to 0%

NL Times  

ABN Amro is lowering the interest rate on its savings accounts to 0 percent as of April 1st. The 0 percent interest applies to savings accounts containing amounts up to 2.5 million euros. People with more than 2.5 million euros in their accounts will pay 0.5 percent interest on their savings. Late last year, ABN Amro promised to not implement …

Angry savers emailed Janet Yellen: We’re getting crushed by low rates
5 years, 1 month ago

Angry savers emailed Janet Yellen: We’re getting crushed by low rates

CNN  

New York CNN Business — Rock-bottom interest rates have pumped up stock prices, knocked down mortgage rates and supported the creation of countless unicorns in Silicon Valley. Janet Yellen said Thursday that when she ran the Fed “a lot of people” correctly guessed her email address – it wasn’t very challenging to do that since it was [email protected] – and …

No negative interest on most ABN Amro savings accounts
5 years, 2 months ago

No negative interest on most ABN Amro savings accounts

NL Times  

ABN Amro will not implement negative interest on savings accounts with less than 100 thousand euros in them, the bank promised. This commitment means that approximately 95 percent of our customers, accounting for around 40 percent of our deposit file, are exempt from negative interest", ABN Amro said with the presentation of its quarterly figures on Wednesday. The bank noticed …

Reserve Bank of Australia Governor Philip Lowe endorses negative interest rates in paper
5 years, 3 months ago

Reserve Bank of Australia Governor Philip Lowe endorses negative interest rates in paper

Daily Mail  

Australian home borrowers could soon be paid money to take out a mortgage from the bank. In August, Danish banks offered the world's first negative mortgage interest rate, paying borrowers a 0.5 per cent rate if they took out a loan. Australia could now follow suit with Reserve Bank Governor Philip Lowe endorsing the idea of negative interest rates. In …

Negative interest rates: when does the financial medicine turn to poison?
5 years, 4 months ago

Negative interest rates: when does the financial medicine turn to poison?

The Telegraph  

How much money would have to disappear from your bank account each month before you scrapped the whole thing? Mario Draghi, the ECB's outgoing president, is expected to cut interest rates again next week, taking its deposit rate from minus 0.4pc to minus 0.5pc or 0.6pc. There is even a one-in-six chance rates could dive to minus 0.9pc by next …

ING CEO's negative interest savings account threats anger customers
5 years, 5 months ago

ING CEO's negative interest savings account threats anger customers

NL Times  

ING customers are furious by the prospect of their bank maybe charging negative interest on their savings accounts. CEO Ralph Hamers mentioned this as an option to cushion the blow should the European Central Bank decide to cut interest rates again, RTL Z reports. One of the options he mentioned is negative interest on savings accounts - which means that …

Deutsche Bank: How negative interest rates helped turn Germany’s biggest bank into a disaster
5 years, 5 months ago

Deutsche Bank: How negative interest rates helped turn Germany’s biggest bank into a disaster

CNN  

New York CNN Business — Deutsche Bank, once a superstar in Europe, is now a disaster. But Deutsche Bank’s struggles have also been amplified by something the 149-year-old lender never imagined, mostly because it had never happened before in modern history: negative interest rates. Negative rates didn’t cause Deutsche Bank’s troubles, Vistesen said, but they “absolutely” magnified them. Negative interest …

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