14:34 GMT04 July 2020
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    One of the world's ten largest banks is set to lower interest rates on its multi-million Swiss franc deposit accounts to below zero, to the chagrin of well-heeled individual investors.

    Credit Suisse will start charging wealthy clients with large cash deposits in Swiss francs, according to Reuters.

    Switzerland's second largest lender will apply a rate of -0.75% on deposits of over 2 million Swiss francs ($ 2.02 million) for individuals and legal entities.

    A rate of -0.85% will be set on deposits of legal entities exceeding 10 million francs. The new rules come into force on 1 January for individuals and from 15 November for corporate clients.

    Several banks in Switzerland and the Eurozone have also introduced negative rates for corporate investors, although most large players refrain from applying negative rates to individual customers.

    “As other banks have been doing for some time, Credit Suisse is introducing negative interest rates for clients with very high Swiss franc cash holdings,” Credit Suisse said on Friday.

    “The reason for this is the persistent negative interest rate environment,” the bank added.

    Since January 2015, the National Bank of Switzerland had set a negative rate of -0.75% on deposits placed with commercial banks in the central bank.

    According to reports, UBS Group AG predicts that the National Bank of Switzerland will lower interest rates at the beginning of next year amid further easing of monetary policy by other central banks.


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