October 31, 2020

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Rabo also charges the customer a quarter of a million interest on account of financial

Rabo also charges the customer a quarter of a million interest on account of financial

The negative interest applies to both business and private customers with more than € 250,000 per account. Nothing will change for savers and companies with € 250,000 or less in their accounts, Rabobank promised in a press release on Wednesday. Up to this balance, the interest for savings and investor accounts remains unchanged at 0.01%. Rabo customers up to € 250,000 do not receive any interest on current accounts.

According to Rabobank, 98.7% of the customer base will remain free of negative interest rates despite the move. However, the cooperative bank warns that “unfortunately no guarantee” can be given that this will continue to be the case. Rabobank points to the persistently low market interest rates and the negative interest that the bank has to pay to the European Central Bank (ECB) in order to store savings.

It is noticeable that Rabobank continues to encourage customers to keep saving despite the almost zero interest rate. “It’s important to have a buffer for unexpected expenses, children’s studies, the aftermath of COVID, or early retirement,” says Rabo.

ING previously introduced negative interest rates over a quarter of a million. At ABN Amro, the limit for negative interest is € 2.5 million. Below that, all interest rates are zero. De Volksbank introduced -0.5% on September 1 for savings of over € 1 million.