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Direct bank ING charges penalty interest on high balances – only for new customers

If you save, you lose money – at least with high deposits, at least with the direct bank ING. From February 2021, the direct bank will charge penalty interest on particularly high account balances of its customers.

The Dutch direct bank ING introduces negative interest rates for high savings. For new current, basic and overnight accounts, there will be a custody fee of 0.5 percent for balances of more than 100,000 euros from February 2021, it said on Wednesday on the institute’s website.

The change applies to accounts that are opened from this Wednesday (November 4th). Nothing will change for existing accounts, stressed an ING spokesman in Frankfurt. There are currently no plans to lower the tax allowance of 100,000 euros.

Commercial banks have to pay 0.5 percent interest when they park excess funds with the European Central Bank. Even if there are allowances for certain sums, that remains a billions for the industry.

More and more banks are charging negative interest

More and more financial institutions are passing on the costs and charging customers negative interest – sometimes from the first euro. According to the comparison portal Verivox, 149 banks and savings banks show negative interest rates for private customers in their price lists. Of these, 38 institutes granted significantly less than 100,000 euros in exemption, 5 demanded negative interest from the first euro, it said.

ING CFO Norman Tambach had already told the dpa in August that the bank reserved the right to react to this trend. However, the institute advertises alternatives for wealth formation such as free direct deposits and sometimes free ETF savings plans.

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