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Context: EU country outside of the Eurozone.

The main bank I am working with has issued a notification that says something along the following lines:

  • no more EUR deposits
  • maximum one current account per currency (one for legal tender, one for EUR, one for USD, etc.)
  • the maximum amount in the legal tender is limited to the equivalent of 1 million EUR (current accounts and deposits)
  • extra commissions for any amounts exceeding 100K EUR in current accounts

What is the point of these limitations? I can understand the first one, as there is zero or less interest for EUR deposits, but the other limitations do not seem to make sense:

  • more than one current account - they might add a commission, but not forbid it
  • maximum amounts in accounts. Isn't bigger better in terms of money you hold in a bank?

I am wondering if this announcement should be treated as a red flag or these limitations make sense in the current context (possible financial crisis, big inflation rate).

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It is likely that these are all related to very low, zero, or negative interest rates, such that (especially after account-servicing overhead) deposits create losses for the bank rather than profits. The bank is trying (or is required by the government) to avoid imposing costs on small savers. Limiting to one account keeps large savers from spreading money to stay below the free account maximums. Yes, the bank could charge added fees for multiple accounts, but they are keeping it simple.

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