Credit Suisse Will Charge Large Depositors for Cash Deposits

October 22, 2019 | News

Credit Suisse becomes the latest bank to punish big savers.

Negative interest rates have forced Credit Suisse to charge interest on Swiss Franc balances above a certain level.

It will charge at a rate of -0.75% for balances above CHF 2 million and -0.85% for that above CHF 10 million. However, these rates will be effective November 15 (for business clients) and January 1, 2020 (for individuals).

Credit Suisse, a victim of persistent low interest rates

In this regard, Credit Suisse is probably simply passing on what it has had to pay to the Swiss central bank.

Banks such as UBS and Julius Baier had earlier passed on the cost to customers.

Credit Suisse explained. “As other banks have been doing for some time, Credit Suisse is introducing negative interest rates for clients with very high Swiss franc cash holdings. The reason for this is the persistent negative interest rate environment.”

Previously, in August, for the first time, Realkredit Danmark paid loan interest to customers, a fallout of the negative interest rate regime.

These kind of rates are “crazy.”

“Negative interest rates are crazy. That means money is not worth anything anymore,” said ex-Credit Suisse CEO Oswald Gruebel said in an interview earlier this month. “As long as we have negative interest rates, the financial industry will continue to shrink.”

However, in September, the next head of the European Central Bank, Christine Lagarde, wrote to the European Parliament. “On the one hand, banks may decide to pass the negative deposit rate on to depositors, lowering the interest rates the latter get on their savings. On the other hand, the same depositors are also consumers, workers, and borrowers. As such, they benefit from stronger economic momentum, lower unemployment, and lower borrowing costs.”

[Related Story:  Here’s What Negative Interest Rates Would Do to the Community Banking Industry         ]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Alternative Investments/ESG: A Shariah Compliant ETF Tracking China ‘A’ Shares Debuts In Malaysia

Value Partners Group Ltd listed today the VP-DJ Shariah China A-Shares 100 ETF, the world’s first Shariah-compliant A-share exchange traded fund (ETF), on Bursa Malaysia. The ETF provides investors exposure…
Artificial Intelligence: Tably, An AI-Powered App, Can Tell How Your Cat Is Doing
July 28, 2021     Artificial Intelligence, News, which uses AI to improve animal health outcomes, has created Tably, an open beta app that “a cat parent” can download and better understand their pet’s health and mood….
FinTech: Alternative Investments Platform Yieldstreet Funded Over $2 Billion
July 27, 2021     Alternative Investments, FinTech, News

Yieldstreet offers retail investors the opportunity to invest in alternative asset classes such as real estate, marine, art, legal finance, and commercial lending. Products are offered across a range of…
Venture Capital: DataRobot Banks $300M Series G; Acquires Algorithmia

DataRobot announced today its raise of $300 million in a Series G round led by existing investors Altimeter Capital and Tiger Global and joined by new investors Counterpoint Global (Morgan…