Negative interest

Applicability of negative interest explained

From 1 July 2021, you pay negative interest if the balance of all of your current and savings accounts totals more than €150,000. Read on to find out how this works.

 

Balance classes and negative interest

Balance classes explained

The terms and conditions make it possible for us to use balance class(es) and, as a result, apply an interest rate for each balance class(es). The total balance on all your different current and savings accounts is used to determine your balance class(es). Joint accounts are included proportionately in the calculation. From 1 July 2021, you pay negative interest if the balance of all of your current and savings accounts totals more than €150,000.

Your current balance classes

We will determine which balance classes you fall under by adding up the balances on all of your current and savings accounts. Joint accounts are included proportionately in the calculation. The following balance classes apply from 1 July 2021:

Balance class (total balance on current and savings accounts)* Interest rate*
€0 to €100,000 0%
€100,000 to €150,000 0%
From €150,000 -0.50%

*Balance classes and interest rates are subject to change.

Do you invest with us?

Because you invest with us, you will temporarily receive a compensation of a part of the negative interest. This compensation is deducted from the negative interest you have to pay. The compensation applies as of 1 July 2021 through 31 December 2021.

Calculating your total balance and interest

Let’s say you have €100,000 in a current account in your own name and €50,000 in the joint savings account you share with your partner. Of the balance on the joint savings account, 50% is included in the calculation of your total balance. In this example, you have a total balance of €125,000 (€100,000 + €25,000). This puts you in the first two balance classes*, meaning you don’t need to pay negative interest. 

*Balance class €0 to €100,000 and balance category €100,000 to €150,000.

Balance class Your balance in the balance class Interest rate Daily interest
€0 to €100,000 €100,000 0% €0
€100,000 to €150.000 €25,000 0% €0
From €150,000 €0 -0.50% €0

Let’s say you have two savings accounts in your own name, each with a balance of €250,000. You also have a joint savings account with your partner and the balance on that account is €1,000,000. Of the balance on the joint savings account, 50% is included in the calculation of your total balance. In this example, you have a total balance of €1,000,000 (€250,000 + €250,000 + €500,000). Your total balance falls under all three balance classes.

Balance class Your balance in the balance class Interest rate Daily interest
€0 to €100,000 €100,000 0% €0
€100,000 to €150,000 €50,000 0% €0
From €150,000 €850,000 -0.50% € -11.64*

*-0.50% of €850,000 is €-4,250 on an annual basis. €-4,250 / 365** days is €-11.64 interest on a daily basis.

**Leap years are calculated on the basis of 366 days.

 

Why are interest rates decreasing?

More information about when negative interest applies and 'balance classes'

Interest rates have been decreasing for years and one of the reasons is that banks deposit their excess savings with the European Central Bank (ECB) and are charged negative interest for doing so. What’s more, interest rates in the Netherlands are under increased pressure, because Dutch people have been saving over the last years.

The following current and savings accounts are used to determine the balance classes: 

Current accounts 

All personal current accounts and ABN AMRO MeesPierson current accounts. Exception is the Vreemde Valuta Rekening.

Please note! These exceptions are not fixed and could be changed in the future.

From 1 July 2021, you pay negative interest on the Rechtbankrekening (estate account). The calculation of negative interest on the Rechtbankrekening deviates from how we calculate the negative interest on the other current and savings accounts. Read the Q&A 'How is negative interest on Rechtbankrekeningen (estate accounts) calculated?' below to find out how this works.

Savings accounts 

  • Vermogens Spaarrekening 
  • Vermogens Arrangement Spaarrekening 
  • Direct Sparen 
  • Direct Kwartaal Sparen 
  • KinderToekomst Spaarrekening 
  • KinderBonusSparen 
  • Royaalrekening 
  • Beleggers Spaarrekening 
  • Private Banking Spaarrekening 
  • Charitas Spaarrekening 
  • Private Banking Spaarrekening Zakelijk 
  • Ondernemers Oriëntatierekening 
  • Private Banking Beleggersrekening 
  • Beleggers Liquiditeiten Rekening 

If you also have business current and/or savings accounts in your own name, visit the webpage about negative interest for commercial clients to find out whether they are also included in the calculation of your total balance. Business current and/or savings accounts in your company’s name are not taken into account.

Joint accounts are included proportionately in the calculation of your total balance. For joint accounts with 2 account holders, 50% of the balance is included for each account holder. If there are 3 account holders, 33 1/3% of the balance is included for each account holder.

These exceptions are not fixed and could be changed in the future.

  • Spaardeposito's 
  • Termijndeposito's 
  • Fiscale spaarproducten 
  • Vermogensbeheerrekening 
  • Vreemde Valuta Rekening 

The calculation of negative interest on the Rechtbankrekening (estate account) deviates from how we calculate the negative interest on the other current and savings accounts. The negative interest is calculated per account as every Rechtbankrekening (estate account) is regarded as a personal bankruptcy or debt restructuring (Wsnp). Per account the threshold above you will pay negative interest of € 150,000 applies. You pay negative interest per month. We always charge the interest in the following month.

Let's say you have 5 Rechtbankrekeningen (estate accounts):

Account Balance Interest rate Daily interest*
1 € 80,000 0% € 0
2 € 120,000 0% € 0
3 € 320,000 0.5% over €170,000 (€320,000 -/- €150,000) € 2.33
4 € 850,000 0.5% over €700,000 (€850,000 -/- €150,000) € 9.59
5 € 60,000 0% € 0

*Leap years are calculated on the basis of 366 days.

If you and your company are separately registered with us, we will treat you and your company as separate clients and your balance tiers will be calculated separately.

If you have paid negative interest in the past year, you may not see this fully reflected in the financial annual overview. For an overview of paid negative interest, please refer to your interest notes.

Do you receive any of your current or saving account statements digitally? Then you will also receive the Invoice negative interest in Internet Banking. This makes it easier for you to save an invoice in your records or forward it to your accountant. You will receive a Bankmail whenever a new Invoice negative interest is available for you.

Do you receive all your current or saving account statements on paper? You will receive the Invoice negative interest by post, a couple of days before the negative interest is due. If you use Internet Banking, you can also find your invoices online.

How can I find my Invoice negative interest?

  • Log in to Internet Banking
  • Go to ‘Self service’ > ‘Download statements’
  • Select ''Download other statements’ and follow the steps shown in this screen
  • Select in the drop down menu 'Overview type' the ‘Invoice negative interest’

In this overview you will find all invoices you have received.

You can find the Invoice negative interest via the Mobile Banking app by going to ‘Self service’ > ‘Download account statements’. Select in the drop down menu ‘Overview type’ the ‘Invoice negative interest’. 

Can I set a preference in the way I receive my invoices?

Unfortunately it is not possible at this moment to set a preference in the way you receive your Invoice negative interest. We are trying our best to make this available as soon as possible. We will inform you once you are able to set this preference, e.g. from paper to digital, yourself.

  • You pay negative interest per calendar quarter, i.e.: 
    • quarter 1: January, February, March 
    • quarter 2: April, May, June 
    • quarter 3: July, August, September 
    • quarter 4: October, November, December
  • We always charge the interest in the month following a calendar quarter. So the interest for quarter 1 is charged in April, for example. We do this in the second half of the month.
  • If you have a Rechtbankrekening (estate account), you pay negative interest per month. We always charge the interest in the following month.
  • We will debit the total amount of negative interest from one of your accounts once per quarter. 
  • Here is how we determine which account to debit the negative interest from: 
    • First, we look at whether you have a current and/or savings account in your own name. 
      • If you do, we will debit the negative interest from an account in your own name. If you have more than one account in your own name, we always use a current account first. If you don’t have a current account, we will debit the negative interest from a savings account. 
      • If you don’t, we will debit the negative interest from a joint account. In this case too, we will initially try to debit the negative interest from a current account. If you don’t have a current account, we will debit the negative interest from a savings account. 
  • If you have to pay negative interest for a quarter, you will receive an interest invoice several days before the negative interest is debited. This invoice will be sent digitally if you use Internet Banking. The interest invoice shows how much negative interest you need to pay and how we calculated it. It will also specify the account number that the negative interest will be debited from.