Say goodbye to negative interest rates: More and more banks are cutting their “custody fees” in view of the central bank’s change in interest rates. Now others want to follow suit.
Penalty interest is coming to an end. After large direct bank ing, recently abolished negative interest on savings deposits, custodial fees are now also history at all SPARDA banks.
Florian Rentsch, chairman of the board of the Sparda Banks Association, referred to the interest rate hike announced by the European Central Bank (ECB) in Frankfurt on Wednesday. “Sparda Bank will allow customers to participate in positive developments and eliminate custodial fees immediately,” he announced.
Sparda-Bank Many Sparda banks, such as Sudwest, have already abolished custody fees for current and overnight accounts on July 1. In all, 46 credit institutions in Germany currently have no interest on small or large credit balances – still without other Sparda banks – because the comparison portal Verivax is broken exclusively for T-Online.
Where Negative Interest Rates Have Gone Now
Accordingly, penal interest will no longer be applicable (as on July 13, 20202) for most of the customers of the following banks:
- 1822 Direct
- Kansar Bank
- Degusa Bank
- german skate bank
- eng
- Kreisparkse Munich Sternberg Ebersberg
- Kreisparkas Wiedenbrücke
- Mainz Volksbank
- Mercury Private Bank
- N26
- North Thuringian Volksbank
- Oldenburg State Bank (OLB)
- PBB Direct – German Pfandbrief Bank
- PSD Bank Nail
- PSD Bank Nuremberg
- PSD Bank Westphalia-Lippe
- Raiffeisenbank Eichlden-Hardt-Sulgen
- Raiffeisenbank Kalbe-Bismarck
- Raiffeisenbank Oldenburg
- Sparda Bank Hamburg
- Sparda Bank Hannover
- Sparda Bank Nuremberg
- Sparda Bank Southwest
- Sparda Bank West
- Sparksey Aschaffenburg-Algenaus
- sparksey hanou
- Sparksey Miltenberg-Oberenberg
- Volks- and Riefenbank Fürstenwald Seelo Vriesen
- Volks- and Riefenbank Muldental
- Volksbank Bremerhaven-Kuxland
- Volksbank Hameln-Stadthagen
- volksbank notulon
- Volksbank Odenwald
- Volksbank Oldenburg
- Volksbank Rhine-Nahe-Hunsrueck
- Volksbank Schwarzwald-Donau-Neckaro
- Volksbank Stendhal
- Volksbank Thuringia Central
- Volksbank Vume-Viste
- VR Bank Altenberger Land
- VR Bank Erding
- VR Bench Feuchtwangen-Dinkelsbühli
- VR Bank Central Franconia West
- VR Bank Neuburg-Rhen
- VR Bank Rein-Neckar
The reason for eliminating interest rates is a gradual change in the interest rates set by the European Central Bank (ECB). On July 21, key interest rates in the euro area are expected to rise by 0.25 percent.
On July 21, the ECB raises its prime interest rate
In September, the ECB brushed off the possibility of another – possibly larger – rate hike. Banks will still have to pay 0.5 per cent interest on depositing funds in ECB. Many financial institutions pass on costs to customers.
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