ING Germany introduces 0.5% fee on deposits over 50,000 euros
ING Germany is implementing a 0.5% annual custody fee for deposits exceeding 50,000 euros, citing negative interest rates set by the European Central Bank as the primary driver.
Starting July 6, 2021, ING Germany will impose a 0.5% annual custody fee on all newly opened current and savings accounts for balances exceeding 50,000 euros. For existing customers, the measure takes effect on November 1, 2021. The bank estimates that approximately 8% of its nine million clients will be affected by the new policy.
CEO Nick Jue stated that the decision follows a sustained period of low interest rates and negative deposit rates imposed by the European Central Bank. While the bank previously absorbed these costs, rising deposit volumes have made this strategy unsustainable. The move aligns ING Germany with several competitors who have already passed similar costs onto private depositors.
In response to the shifting financial environment, the bank is encouraging customers to pivot toward securities and ETFs. To facilitate this shift, the institution has eliminated purchase fees for its savings plans and expanded its digital advisory services. Securities business has seen significant growth, with the number of brokerage accounts rising to 1.8 million in the first quarter of 2021.