The ING banking group has decided to tighten deposit conditions

The ING banking group has decided to tighten deposit conditions due to negative interest rates. New and existing customers will pay an annual fee of 0.5% for deposits over 50,000 euros. Commercial banks currently have to pay 0.5% interest if they deposit excess money with the European Central Bank (ECB), and more and more institutions are passing these costs on to their customers. Several banks have recently reduced outstanding amounts. "So far, thanks to our portfolio, we have been able to largely offset the costs we incur due to falling interest margins and negative deposit ECB interest rates," DPA quoted ING CEO Nick Jue as saying. However, ING's deposits in Germany increased as many competitors already passed on negative interest to their customers. "After careful consideration, we have decided to pass on the ECB's negative interest to our clients in the form of a deposit fee of 0.5% on deposits over EUR 50,000," he said. This means that the outstanding amount will be halved. The new terms and conditions apply from November 1 to all customers, including new daily and current accounts opened after July 6. The bank will contact approximately 750,000 of the nine million regular customers in writing with more than € 50,000 in writing and will seek approval for the introduction of a deposit fee. ING does not want to lose its clients and is convinced that it will prevent potential account closures through dialogue. For many years, the direct bank with the ING-Diba label has attracted clients with relatively high interest rates on savings. However, due to the long-standing policy of low interest rates, these deposits create costs. The bank, which has been operating only under the name of the Dutch parent company ING since November 2018, is trying to acquire more regular clients. Ideally, customers not only save money, but earn commission income through building savings, consumer loans and investment savings.