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  #21  
Old 14.11.2016, 09:54
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Re: Negative interest rates - first retail banking reaction

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Ir finally happened - negative rates in ordinary swiss banks!

Postfinance will start charging 1% soon: http://www.srf.ch/news/wirtschaft/po...er-millionaere
Fact check: ABS has already been doing this a while, since november last year http://www.thisismoney.co.uk/money/n...ive-rates.html
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  #22  
Old 14.11.2016, 10:13
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Re: Negative interest rates - first retail banking reaction

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Fact check: ABS has already been doing this a while, since november last year http://www.thisismoney.co.uk/money/n...ive-rates.html
Difference being that ABS only has 30,000 customers, whereas PF has 3,000,000.

Quite an obvious move from PF. They don't have a loan book that they can flex the pricing on to maintain their net interest margin like a full service bank.
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  #23  
Old 14.11.2016, 10:25
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Re: Negative interest rates - first retail banking reaction

Exactly, ABS might disappear tomorrow and nobody would even notice, it's just a small niche bank. But half of the country keeps money in PostFinance. I'm sure other banks would now follow it

At least ABS would be able to brag that they charged negative interests before it became mainstream!
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  #24  
Old 14.11.2016, 10:36
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Re: Negative interest rates - first retail banking reaction

Ok, but it is still a retail bank... which was the title of this thread.

Will be interesting to see if CS or UBS ever follow suit, or keep taking the hit on behalf on account holders.
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Old 14.11.2016, 12:11
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Re: Negative interest rates - first retail banking reaction

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Ok, but it is still a retail bank... which was the title of this thread.

Will be interesting to see if CS or UBS ever follow suit, or keep taking the hit on behalf on account holders.
See my previous post regarding the loan book. The big banks have levers to pull that PF don't. I can't see retail clients being charged negative rates anytime soon by CS or UBS.
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  #26  
Old 14.11.2016, 12:13
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Re: Negative interest rates - first retail banking reaction

Following your logic they shouldnt charge their rather expensive account management fees either but they do
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Old 14.11.2016, 12:20
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Re: Negative interest rates - first retail banking reaction

Again it's for accounts over a million.

Who keeps over a million in cash in a retail bank?
Whoever it is they deserve to get charged that and more
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  #28  
Old 14.11.2016, 12:37
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Re: Negative interest rates - first retail banking reaction

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Following your logic they shouldnt charge their rather expensive account management fees either but they do
Not really. It's a different part of the banking P&L to net interest income. Retail deposits are also very important for regulatory reasons too, so better not to scare the horses with negative interest rates.
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  #29  
Old 14.11.2016, 12:58
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Re: Negative interest rates - first retail banking reaction

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Again it's for accounts over a million.

Who keeps over a million in cash in a retail bank?
Whoever it is they deserve to get charged that and more
... or I could lock it up in equities and property and not have it handy when I want to buy a new car. A million in cash isn't all that much for a lot of people, and easily falls within the "spending money" bucket for some for those, it makes sense to keep it in a current or savings account.
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Old 14.11.2016, 13:15
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Re: Negative interest rates - first retail banking reaction

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Ok, but it is still a retail bank... which was the title of this thread.

Will be interesting to see if CS or UBS ever follow suit, or keep taking the hit on behalf on account holders.
UBS have started charging for more of their services. For example, I used to be able to take cash from the ATM of other banks for free - now there is a charge. If you have 0% interest and arbitrarily set bank charges, effectively you have -ve interest.
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  #31  
Old 14.11.2016, 13:38
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Re: Negative interest rates - first retail banking reaction

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... or I could lock it up in equities and property and not have it handy when I want to buy a new car. A million in cash isn't all that much for a lot of people, and easily falls within the "spending money" bucket for some for those, it makes sense to keep it in a current or savings account.
For sure, but when you're at the level of keeping over a million at a current account, you have a lot more options that doing it at "retail".

That's what private banking is for
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  #32  
Old 14.11.2016, 14:35
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Re: Negative interest rates - first retail banking reaction

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... or I could lock it up in equities and property and not have it handy when I want to buy a new car. A million in cash isn't all that much for a lot of people, and easily falls within the "spending money" bucket for some for those, it makes sense to keep it in a current or savings account.
What mine of car are you buying? And how much is the insurance???
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