December 1, 2020

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ABN Amro: Negative interest on savings of half a million | Financially

ABN Amro: Negative interest on savings of half a million | Financially

This emerges from a message that ABN Amro put online on Monday. As early as April, the bank introduced negative savings rates for customers with an account of more than € 2.5 million. This threshold will therefore be lowered further to half a million in less than a year.

ABN Amro emphasizes that despite the lowering of the threshold, around 98% of customers remain free from negative savings interest. The bank is putting interest rates below zero for more customers as the low interest rate environment is unlikely to be over anytime soon.

The policy of the European Central Bank (ECB) dictates that banks must pay half a percent interest in order to receive savings that they cannot borrow. Despite the zero interest rates for savings accounts, customers keep saving.

Interest rate policy

ABN Amro says it has no option but to pass some of the ECB’s negative interest costs on to customers. On the other hand, many consumers have been benefiting from the low mortgage interest rate due to the ECB’s policy for years.

Rabobank had previously announced that it would adjust its savings rates. Here, the threshold for negative savings interest will be reduced from 1 January to € 250,000. ING will also take this step from the turn of the year.

A transitional arrangement is being introduced for customers who invest in ABN Amro, partly because the interest rates for them have recently changed.