Threshold for negative interest rate down to 150,000 euros

Interest rate climate

What causes negative interest rates? One of the reasons is that in recent years, private individuals and businesses have been increasingly saving their money. Banks are required to deposit a percentage of such savings with the European Central Bank (ECB) and pay negative interest to the ECB on these deposits. As clients’ savings at banks grow, the banks have to deposit more money with the ECB on top of the statutory percentage. This leads to higher costs, which are partially recuperated by charging negative interest rates. After the threshold has been lowered to 150,000 euros, 97% of clients will remain unaffected by negative interest rates. For ABN AMRO’s investment clients, a transitional arrangement applies.

Fee change notice for private individuals

Starting this week, ABN AMRO clients will be informed about the new threshold. Private individuals will also receive information about the conditions and rates due to come into effect on 1 July 2021. The main change is that the monthly fee for the basic payment package BasisPakket Betalen will be raised to EUR 1.95 (from EUR 1.70). The price of this package is going up for several reasons. Firstly, the bank incurs costs in its efforts to make banking safe and convenient for clients and to develop new services. In addition, the costs of client and transaction checks are increasing. While the bank absorbs the bulk of such costs, some are passed on. This is also the case where specific accounts lead to higher costs, such as accounts for administrators or clients living abroad.

Surcharge for non-residents

From 1 July onwards, retail clients with non-residential accounts will pay a surcharge of 2 euros per month in addition to the existing fees for their current account or payment package. This change applies to retail clients who live abroad and maintain a Dutch ABN AMRO current account, as these accounts are subject to special compliance obligations under local and international regulations. The related costs will be partially recuperated by a monthly surcharge from 1 July. Approximately 85% of clients in this position will be subject to a monthly 2 euro surcharge; for some, depending on the region they are in, the surcharge will be 8 or 15 euros per month.

Administrator accounts

From 1 July 2021, pricing methods for administrator accounts will change. The new principle will be that the more accounts an administrator has, the higher the costs will be. Until now, a package price per cluster applied. However, the bank incurs certain costs for specific accounts. We will continue to uphold the principle that the more accounts an administrator has, the lower the relative price will be.

Discouraging excessive use of cash

By applying a number of new fees, ABN AMRO aims to discourage excessive use of cash, in particular with regard to cash deposits. Cash deposits require special checks that entail additional costs. Cash withdrawals will continue to be free of charge for almost everybody. However, clients who withdraw large amounts of cash (with a threshold of 10,000 euros per year in the Netherlands) will incur additional costs. In 2020, the percentage of clients exceeding this threshold was 1.8%.

For more information about all the new fees and conditions that come into effect on 1 July 2021, please see www.abnamro.nl/voorwaarden2021.