Stuttgart – Attention, cost trap!
The Baden-Württembergische Bank (BW-Bank) is now charging negative interest on overnight money and current accounts.
New customers who put more than 100,000 euros into their current and daily deposit accounts have to PAY 0.5 percent annual interest from February.
A spokesman for the bank said on Tuesday. The bank wants to address existing customers if they permanently park more than one million euros in their overnight or current account; the tax exemption is also 100,000 euros. “Stuttgarter Zeitung” and “Stuttgarter Nachrichten” (Wednesday) reported on it beforehand.
The background to this is that the European Central Bank demands 0.5 percent interest from commercial banks when they park money at the central bank. BW-Bank had to pass these costs on to customers, said the spokesman in Stuttgart. He spoke of a “custody fee”.
Other financial institutions in Germany have already introduced such measures: According to the comparison portal Verivox, more than 200 banks and savings banks are humming negative interest rates for private customers, especially for overnight money; these usually apply to higher sums.