Monday , December 23 2024
Home / SNB & CHF / Credit Suisse to charge wealthy clients negative interest rates

Credit Suisse to charge wealthy clients negative interest rates

Summary:
Central bank negative interest rates are costing Swiss commercial banks CHF2 billion a year. (© Keystone / Melanie Duchene) Credit Suisse has joined the likes of UBS and Post Finance in charging rich clients to park their wealth in its vaults. It will pass on the cost of the central bank’s negative interest rates to both private individuals and corporate accounts above certain thresholds. From November 15, corporate clients will be charged -0.85% interest on cash holdings above CHF10 million ( million), Credit Suisse confirmed on Friday. Individuals will face -0.75% rates on savings accounts above CHF2 million, starting from January 1, 2020. “In line with the approach that has long been followed by other banks, Credit Suisse is now also introducing negative

Topics:
Swissinfo considers the following as important: , , , ,

This could be interesting, too:

Nachrichten Ticker - www.finanzen.ch writes Krypto-Ausblick 2025: Stehen Bitcoin, Ethereum & Co. vor einem Boom oder Einbruch?

Connor O'Keeffe writes The Establishment’s “Principles” Are Fake

Per Bylund writes Bitcoiners’ Guide to Austrian Economics

Ron Paul writes What Are We Doing in Syria?

Credit Suisse to charge wealthy clients negative interest rates

Central bank negative interest rates are costing Swiss commercial banks CHF2 billion a year. (© Keystone / Melanie Duchene)

Credit Suisse has joined the likes of UBS and Post Finance in charging rich clients to park their wealth in its vaults. It will pass on the cost of the central bank’s negative interest rates to both private individuals and corporate accounts above certain thresholds.

From November 15, corporate clients will be charged -0.85% interest on cash holdings above CHF10 million ($10 million), Credit Suisse confirmed on Friday. Individuals will face -0.75% rates on savings accounts above CHF2 million, starting from January 1, 2020.

“In line with the approach that has long been followed by other banks, Credit Suisse is now also introducing negative interest rates for clients with very large CHF cash holdings. The reason for this is the persistent negative interest rate environment,” the bank stated.

This has come about because the Swiss National Bank (SNB) charges negative interest rates on money it holds on behalf of commercial banks. The Swiss Bankers Association says this costs commercial banks CHF2 billion a year.

The SNB argues that it is necessary to charge negative interest to prevent the Swiss franc from increasing in value against other currencies. Despite complaints from the financial industry, this policy looks set to stay in place for the immediate future.

Earlier this year, UBS introduced similar charges for its wealthiest clients, a strategy that Post Financeexternal link had already put into place.


Tags: ,,
About Swissinfo
Swissinfo
SWI swissinfo.ch – the international service of the Swiss Broadcasting Corporation (SBC). Since 1999, swissinfo.ch has fulfilled the federal government’s mandate to distribute information about Switzerland internationally, supplementing the online offerings of the radio and television stations of the SBC. Today, the international service is directed above all at an international audience interested in Switzerland, as well as at Swiss citizens living abroad.

Leave a Reply

Your email address will not be published. Required fields are marked *