Holding cash is becoming a less favourable option for many customers around the world. Charging fees on cash deposits is becoming the new norm in Germany, and more of them will follow in the coming months. So far, two more banks have taken this route, including the Bank of Ireland and Ulster Bank It looks like the negative interest rates will be passed on to customers who make cash deposits.
It was only a matter of time until the negative interest rates would be passed on to the customers. Not only are savings accounts subject to financial losses, but cash deposits will be penalised as well. Both Bank of Ireland and Ulster Bank are considering a plan to charge negative rates on cash deposits, once they surpass a certain threshold.
Bank of Ireland Takes Drastic Measures Against Cash Deposits
What is rather worrying is how Bank of Ireland becomes the first “large” institution to take this approach. A negative rate of 0.1% will be charged on deposits of 10 million EUR or higher come October 2016. However, nothing is preventing the institution from charging such a fee for small deposits in the future.
While this change will only affect a