Germany Enters Deflation

germany negative interest rates oct 2020

Europe’s biggest economy is now in a full swing monetary deflation for the first time in our era. More than 200 banks have now introduced penalty interest rates on retail deposits, some from the first euro, to cover costs incurred by ECB’s negative interest rate for bank deposits. Even mobile Bank N26 has introduced penalty interest rates from €50,000 according to local media. A comparison website says “144 banks have published negative interest rates for private customers on their website or in their online price list. 13 banks charge fees for the overnight money account, which is usually free. This creates an actual negative interest rate. According to media reports, some banks and savings banks charge negative interest rates, but do not publish them online.” Almost all German banks, including the biggest Deutsche Bank, now charge -0.5% for deposits of €100,000 or more. That means such depositors have to pay…

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