Small savers now have to be really brave. Or hide your money under the mattress. The Alternative Bank is the first bank in Switzerland to introduce negative interest rates from the first franc. The bank announced that it would tighten its regime from August 1st. Starting in August, a penalty of CHF 2.50 per year will be due for every CHF 1,000 of credit. This is reported by the “Tages-Anzeiger”.
So far, savers at the Alternative Bank with a credit balance of up to 50,000 francs and young people in training with a credit balance of 100,000 francs have been spared. After all, there will still be exceptions in the future. For example, for retirement and rental deposit accounts, savings and investment accounts for children up to CHF 75,000 and securities accounts up to CHF 500,000 and asset management mandates.
Postfinance is also becoming stricter
No financial institution in Switzerland has gone as far as Alternative Bank Switzerland. Postfinance, for example, wants to lower the threshold for negative interest from the previous CHF 250,000 to CHF 100,000 from July 1st. Amounts above this will be charged 0.75 percent. UBS has also announced that it will reduce its exemption limit for penalty interest from the previous CHF 2 million to CHF 250,000 from July. (pbe)