Rabobank is the third big bank in the Netherlands to introduce a negative interest rate on large savings accounts. This means some people will have to start paying to keep their savings in the bank.

Paying to keep your money in the bank

As of May 1 for business customers and July 1 for private customers, an interest rate of -0,5 percent will be implanted. This rate only applies to those with one million euros or more in savings. Private non-millionaire customers will continue to get the 0,01 percent interest rate. Business customers with savings between 100.000 euros and one million already have a 0 percent interest rate.

According to Rabobank, implementing a negative interest rate is necessary due to the ongoing low-interest rate. This move will affect around 400 private customers and over 6.000 business customers. The bank is going to try to have the negative interest rate only apply to those with more than one million in savings; however, it cannot guarantee that it won’t later apply to those with less in the bank.

Other banks heading in the same direction

Rabobank isn’t the only bank implementing a negative interest rate; two others have already made the move. ING and ABN Amro have already introduced negative interest rates on large savings accounts. ING’s negative interest rate applies to those with one million euros or more in savings and ABN Amro’s to those with 2,5 million or more.