Negative interest

Applicability of negative interest explained

From 1 April 2020, you will need to pay negative interest if the balance on all of your current and savings accounts totals more than €2,500,000. Read on to find out how this works.
 

Balance classes and negative interest

Balance classes explained

The new 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 April 2020, you will need to pay negative interest if the balance on all of your current and savings accounts totals more than €2,500,000.

Your current balance classes

From 1 April 2020, 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 April 2020:

Balance class (total balance on current and savings accounts)* Interest rate*
€0 to €100,000 0%
€100,000 to €2,500,000 0%
From €2,500,000 -0.50%

*Balance classes and interest rates are subject to change.

Calculating your total balance and interest

Let’s say you have €250,000 in a current account in your own name and €100,000 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 €300,000 (€250,000 + €50,000). 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 €2,500,000.

Balance class Your balance in the balance class Interest rate Daily interest
€0 to €100,000 €100,000 0% €0
€100,000 to € 2.500.000 €200,000 0% €0
From €2,500,000 €0 -0.50% €0

Let’s say you have two savings accounts in your own name, each with a balance of €1,250,000. 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 €3,000,000 (€1,250,000 + €1,250,000 + €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 €2,500,000 €2,400,000 0% €0
From €2,500,000 €500,000 -0.50% € -6.85*

*-0.50% of €500,000 is €-2,500 on an annual basis. €-2,500 / 365** days is €-6.85 interest on a daily basis.

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

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. Exceptions are the Vreemde Valuta Rekening and Rechtbank Arrangementen rekeningen (estate accounts).

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.
  • Spaardeposito's 
  • Termijndeposito's 
  • Fiscale spaarproducten 
  • Vermogensbeheerrekening 
  • Vreemde Valuta Rekening 
  • Rechtbank arrangementen rekening
  • 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.
  • 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.