UBS is considering tightening up the negative interest rate regime

UBS may soon be more savers with negative interest rates charged than in the past. Currently on Cash holdings of two million francs, a penalty interest charged

UBS is considering tightening up the negative interest rate regime

UBS may soon be more savers with negative interest rates charged than in the past. Currently on Cash holdings of two million francs, a penalty interest charged. According to the research reviewed, UBS, Switzerland currently, the correct height of this border. This will probably lead to an adjustment in the course of the year, says an Insider. When and if a new Regime is introduced, is yet to be decided.

A spokeswoman says that it will for banks "increasingly impossible" to compensate for the "economic consequences of the negative interest rates with alternative measures. We follow the development closely and recommend customers to consider Alternatives to cash."

UBS has by 1. November, 2019, the exemption limit of 2 million Swiss francs reduced. In euros, the limit is 500’000. The spokeswoman says: "The UBS intends to continue to burden small depositors or small businesses with negative interest rates."

In the case of UBS, the free-at-frontier in comparison to other banks. Migros Bank customers fined from 1 Million Swiss francs. Julius Baer is a penalty interest rate from 500’000 Swiss francs. Post Finance charged to credit of 250’000 Swiss francs with a penal interest of 1 per cent.

cash remains tempting

That the pressure on the increases in exemption limits, is likely to also be associated with the Corona-crisis. The markets are going crazy because of the virus disease. The share prices have fallen in recent weeks dramatically. Many investors sell their holdings and flee to cash.

UBS is currently increasingly the conversation with your customers, to discuss Alternatives for cash. However, the options are in the face of great uncertainty little tempting. UBS chief financial officer Kirt Gardner said recently that the Bank had started a program to move customers with high cash holdings investments. "If those customers don't want that, we need to charge you accordingly. It is possible that you move your cash somewhere else."

High Cash holdings can be for the banks is expensive because you must pay a defined exemption limit in the case of the Swiss national Bank (SNB) imposed a negative interest rate, currently at 0.75 percent. The rising costs be passed on to the customers, have introduced the most Swiss banks have a limit to the savings. Due to the surprising decrease in the interest rates in the United States this week, the pressure on the SNB has increased. The next monetary policy assessment of the SNB on the 19th of should therefore. March are expected.

Created: 06.03.2020, 19:26 PM

Updated Date: 06 March 2020, 19:01

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