ING announces a turnaround in interest rates and abolishes default interest

Even before a decision by the European Central Bank, ING abolishes negative interest rates. Benefits are on the rise. What it means for your account.

According to its own statements, ING Germany is abolishing negative interest rates for most of its private clients. On July 1, the bank will increase the allowances for credit balances on current accounts and call money, for which no custody fee is due, from the current € 50,000 to € 500,000 per account, as announced Tuesday by the institution. In this way ING Germany passes on to its clients the positive development of interest rates on the capital markets at an early stage.

“With the increased allowance for credit balances on checking and extra accounts, the custodian fee will no longer apply to 99.9% of our customers,” said Nick Jue, CEO of ING in Germany.

“We were one of the last banks to introduce a custodian fee and we are one of the first to end it,” says Jue. The promise to abolish the custodian fee when the negative interest ceases is redeemed by the institution for almost all customers even before the European Central Bank makes a decision.

Is the ECB raising interest rates?

Faced with record inflation, European monetary authorities are moving towards the end of an extremely accommodative monetary policy. A first rate hike in July is considered increasingly likely.

Currently, banks have to pay 0.5 percent interest when parking money with the ECB. Economists predict that the central bank is likely to raise this negative deposit rate to zero percent in stages this year. Read what it means here.

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