The change will take effect from the end of March and will see the negative rate increased from the current -0.5% they are currently charged.
For the past 8 years, the ECB has been charging banks who deposit money with it negative interest rates in order to encourage them to increase lending and their customers to increase spending. "The huge growth in customer balances, especially during the pandemic, has increased the cost to the bank of providing current and deposit product services, including negative interest rate costs."Around 3,000 corporate customers will be impacted by the move to increase the charge for holding balances over €1m.
It has now begun writing to those personal customers to let them know this will not now begin until May.