Swiss banking group UBS will start charging customers a negative interest rate of 0.6%. The measure will apply to customers with deposits worth one million euros or more.
That's quite chunky, especially if you consider that positive interest rates (it still feels a bit weird that we have to clarify this now) haven't been at 0.6% for a while now.
As a reason for imposing the charge, UBS names the "continuing extraordinarily low interest rates in the euro area" combined with "increased liquidity regulations".
It's a direct consequence of steps by the European Central Bank asking private banks to pay a small percentage for storing their money with them instead of lending it out or investing it.
Blog resource for 6th Form, with contributions from teachers and students.
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