November 25, 2020

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ABN AMRO lowers the negative interest rate limit to half a million euros | NOW

ABN AMRO lowers the negative interest rate limit to half a million euros | NOW

At ABN AMRO, negative interest will be charged from January 1st for customers who have more than 500,000 euros in their bank accounts. Above this threshold, both private and business customers pay an interest rate of 0.5 percent, the bank reported on Monday.

ABN AMRO currently charges negative interest for assets of 2.5 million euros or more. With the new limit, around 2 percent of customers have to pay negative interest.

ABN AMRO isn’t the only bank to lower the limit on negative interest rates. At the end of last month, Rabobank announced that customers would have to pay negative interest if they had more than 250,000 euros in their account. The same limit applies to ING.

However, there is a huge difference between banks. Both Rabobank and ING charge the negative interest rate per account, so customers can have multiple accounts with a quarter of a million euros without paying the negative interest. ABN AMRO adds up the assets in several bank accounts.

Last year, ABN AMRO was the first of the big banks to announce that it would cut the interest rate on savings to 2.5 million euros to 0 percent and also charge interest. The other banks followed suit. The amount from the point in time when no or negative interest accrues varies depending on the bank.