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22 Apr 2015
SNB announces fewer exemptions from negative interest rates
FXStreet (Córdoba) - The Swiss National Bank (SNB) said it has considerably reduced the group of sight deposit account holders that are exempt from negative interest.
The SNB completed its review and announced on Wednesday negative interest will now also apply to the so-called sight deposit accounts held at the SNB by enterprises associated with the Confederation, the Federal Pension Fund, and the SNB's pension fund.
The affected account holders will be accorded the minimum exemption threshold of CHF 10 million, to which negative interest does not apply. In addition, the accounts of the cantons of Geneva and Zurich, as well as that of the City of Zurich, will be wound up.
The SNB imposes a charge of 0.75% on sight deposit account balances at the central bank.
The SNB completed its review and announced on Wednesday negative interest will now also apply to the so-called sight deposit accounts held at the SNB by enterprises associated with the Confederation, the Federal Pension Fund, and the SNB's pension fund.
The affected account holders will be accorded the minimum exemption threshold of CHF 10 million, to which negative interest does not apply. In addition, the accounts of the cantons of Geneva and Zurich, as well as that of the City of Zurich, will be wound up.
The SNB imposes a charge of 0.75% on sight deposit account balances at the central bank.