UBS charge for accounts above €1m
ZURICH: UBS Group AG is extending charges on cash holdings to more of its customers, becoming the latest bank to pass on the eurozone’s negative interest rates.
The world’s largest wealth manager introduced a charge of 0.6 per cent on euro-denominated accounts with cash holdings exceeding €1 million (RM4.77 million), the bank told clients in a letter seen by Bloomberg.
UBS confirmed the content of the letter.
“This charge reflects our costs resulting from the continuing extraordinarily low interest rates in the euro area and increased liquidity regulations,” said the bank in the letter.
Clients who don’t agree to the conditions need to inform UBS and close their account by the end of next month.
The European Central Bank is trying to revive the euro-area economy by charging banks to keep money overnight at the ECB rather than lend or invest it, and by purchasing bonds to drive borrowing costs lower for firms.
UBS is among lenders grappling with the headwinds of negative interest rates and introducing fees for clients.
The new UBS charge will be calculated and debited daily and applies to the total combined balance in multiple accounts held by the same customer.
It doesn’t apply to euro accounts held in other investment advisory or discretionary mandates. Bloomberg
UBS Group AG will charge depositors 0.6 per cent on eurodenominated accounts with cash holdings exceeding €1 million.