Zuercher Kantonalbank has charged clients a penalty on large cash deposits since 2015. As negative interest rates persist, the bank decided to lower the threshold dramatically.
Zuercher Kantonalbank (ZKB), Switzerland’s fourth-largest bank, has introduced a penalty of 0.75 percent on cash deposits of 100,000 Swiss francs ($101,000) and more. The bank confirmed a report by «Tages Anzeiger» (behind paywall).
Interest Margin Under Pressure
The threshold for cash holdings exempt from the charge was lowered as a consequence of persisting pressure on the interest margin, the bank said. Only a small minority of clients are effectively asked to compensate the bank for the interest it in turn is forced to pay to the Swiss National Bank.
The bank also said that there was no strict and general rule on the penalty payment and the threshold applied. ZKB instead fixes the cash amount exempt from the charge for each client individually.
Small Savers Remain Exempt
Savers with only small amounts of money as well as small enterprises don’t have to pay interest to the bank at all.
