Swiss wealth manager UBS is set to lower the threshold for charging affluent customers as negative interest rates continue in Europe, effective from this November.
The firm will start charging clients an annual fee of 0.6% for deposits of over €500,000 Bloomberg has reported. The former threshold was €1m.
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Last week, the Financial Times reported that UBS would charge clients 0.75% for holding over CHF2m in their accounts.
UBS was quoted as saying: “We assume that this period of low interest rates will last even longer and that banks will continue to have to pay negative interest rates on customer deposits at central banks.
“Following similar moves by a number of other banks here in Switzerland, we confirm that we’ve decided to adjust cash deposit fees for Swiss francs held in Switzerland.”
The charge on wealthy clients is a departure from banks’ usual practice of passing negative rates to institutional clients.
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By GlobalDataOther Swiss banks pass on negative interest rates
Starting from next month, Credit Suisse is set to charge 0.4% for accounts holding over €1m.
Same is the case with Lombard Odier clients, who will be charged for holding more than €1m from October this year.
Swiss private banks Julius Baer and Pictet have also been levying negative interest rate on clients.
Other Swiss banks are expected to follow.
