Credit Suisse is set to charge clients with large cash deposits negative interest rates, becoming the latest Swiss bank to do so.
The wealth manager has decided to charge individual and business customers 0.75% for holding deposits of above CHF2m ($2.02m) at the bank.
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Customers holding more than CHF10m will be charged 0.85% annually.
However, accounts with cash holdings of less than CHF2m will remain unaffected.
The new rules will become effective on 15 November 2019 for business customers, while private customers will have to pay the negative interest rate from 1 January 2020.
Credit Suisse said: “In line with the approach that has long been followed by other banks, Credit Suisse is now also introducing negative interest rates for clients with very large CHF cash holdings.
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By GlobalData“The reason for this is the persistent negative interest rate environment.”
Several Swiss financial institutions including UBS, Julius Baer and Pictet have already announced plans to charge wealthy clients negative interest rates.
Such charges were originally restricted to institutional investors. However, several banks have recently started levying negative interest rate on individual clients for large deposits.
In July, UBS reportedly decided to charge an annual fee of 0.6% for deposits of more than €500,000, lowering the previous threshold of €1m.
