Information about negative interest rates on the checking account
June 11, 2022 | 40,00 EUR | answered by Karl Böhm
Dear Lawyer,
I am contacting you because I have questions regarding negative interest rates on my current account. In recent months, I have noticed that my account balance has been decreasing slightly, even though I have not made any major expenses. After further investigation, I have found out that my bank is charging negative interest rates on my current account.
I am concerned about this development, as I did not expect it and was not aware that negative interest rates on current accounts were possible. Furthermore, I am worried that the fees could increase over time and would like to know if there are any legal options to counteract these costs.
Could you please provide me with more information on negative interest rates on current accounts? What are my rights as an account holder in this situation? Are there any legal steps I can take to prevent or reduce the imposition of negative interest rates? I would greatly appreciate your professional advice and support on this matter.
Thank you in advance.
Sincerely,
Hilde Bittner
Dear Mrs. Bittner,
Thank you for your inquiry regarding negative interest rates on your checking account. It is understandable that you are concerned about this development and would like to inform yourself about your rights as an account holder. Negative interest rates on checking accounts have indeed become a more common issue in recent years, causing uncertainty among many consumers.
Negative interest rates, also known as penalty interest, are imposed by banks when customers hold high amounts of money in their checking accounts. This is mainly in response to the low interest rate policy of the European Central Bank, which prompts banks to pay penalty interest when they park money with the central bank. Some banks pass on these costs to their customers by introducing negative interest rates on checking accounts.
As an account holder, you have the right to be informed about the terms of your checking account, including any fees and costs. If your bank imposes negative interest rates, they must inform you about it. You also have the right to object to this change and potentially close the account.
There are legal steps you can take to prevent or reduce the imposition of negative interest rates. Initially, you should contact your bank and ask for an explanation regarding the negative interest rates on your account. If your bank does not provide a satisfactory response, you can contact a consumer protection agency or a specialized lawyer in banking law to assess your rights and potentially take legal action.
You also have the option to switch to a bank that does not impose negative interest rates on checking accounts. It is worth comparing the terms of different banks and potentially switching accounts to avoid additional costs.
I hope this information is helpful to you and I am available for any further questions. Thank you for your trust and inquiry.
Best regards,
Karl Böhm, Attorney at Law
