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According to the Financial Times charges for deposits are primarily interbank.

HSBC has written to other banks to warn it will start charging them for deposits in euros, Swiss francs, Danish krone and Swedish krona — all currencies of countries that have negative interest rates — at its UK, German and Hong Kong operations from this summer.

German, Swiss, Danish and Swedish banks have been at pains to avoid subjecting the general public or small businesses to fees for depositing cash, preferring to impose levies only on the biggest corporate and institutional customers.

I said ‘primarily’.

Only Erhvervsbank, a small Danish bank, and Skatbank, a regional German lender, have bitten the bullet and announced plans to make retail customers pay to hold money in deposit accounts.

Charges for deposits are coming to bank near you soon.

Fractional reserve banking rules in the US requires banks to maintain only a few per cent of actual deposits.  Rules requiring banks to actually be responsible to their depositors, maintaining higher liquidity, will cost you.

JPMorgan Chase said this year it would start charging some of its biggest institutional customers, such as hedge funds and foreign banks, to make “excess” deposits, which have become too costly under new liquidity rules.

Like we have said before.  Get your money out of banks.

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