The bank has decided to apply a rate of -0.50% on the deposits of its customers credited with more than two million euros.
In order to “take into account market conditions and the persistence of low and negative interest rates”, ING Belgium will charge from January 1, 2021 a negative rate on part of the deposits of its wealthiest clients, reports The Echo.
Concretely, the regulated savings accounts of its individual clients will have a maximum balance of one million euros. Amounts exceeding this sum will be transferred to a current account with an interest rate of 0% up to one million euros again. Beyond that, a rate of -0.50% will apply. Clearly, ING will take part of the deposits of its wealthiest clients.
For legal entities, ING Belgium points out that the negative rate had already been applied since 2016 to the accounts of certain business customers. But as of 2021, a negative interest rate of -0.50% will also be charged for balances exceeding the threshold of one million euros.
Context of low and negative interest rates
The bank nevertheless wishes to reassure, affirming in a press release that this rate adjustment “has no consequences for 99.9%” of its individual customers and that the legal minimum interest rate of 0.11% is itself. maintained. In addition, the negative interest rate is expected to affect less than 1% of corporate clients of the Dutch bank.
By applying a negative rate to its clients’ deposits, ING follow in the footsteps of other European banks who have already announced similar measures. Like ING, these institutions justify themselves by explaining that they have been facing “low to negative interest rates in Europe for some time”.
“These are the consequence of the policy that the European Central Bank has been pursuing for a while to stimulate economic growth in Europe. This interest rate has been negative since June 2014. This has led to a continuous decrease in interest rates on loans and investment returns, “notes ING.