You are here
Negative rates at Swiss banks seem to invite customers to move cash into gold
UBS' Rich Clients to Feel Negative Rates Pain as Fees Extended
By Patrick Winters
Bloomberg News
Tuesday, August 6, 2019
UBS Group plans to expand a policy of charging rich clients for holding excess cash in their accounts as negative interest rates in Europe are poised to stay.
The bank, which has made wealth management its central focus, plans to charge its Swiss clients an annual fee of 0.6% on deposits of more than 500,000 euros ($560,000). The fee previously kicked in at 1 million euros.
... Dispatch continues below ...
Buy, Sell, or Store Precious Metals with Money Metals
Money Metals Exchange, a national bullion dealer recently voted "Best in the USA" by a worldwide ratings group --
https://www.moneymetals.com/news/2015/02/03/worldwide-ratings-organizati...
-- is a great low-cost source for precious metals coins, rounds, and bars. Money Metals also pays handsomely when you wish to sell your precious metals.
Shop online with Money Metals Exchange here --
https://www.moneymetals.com/buy
-- or by calling 1-800-800-1865.
Meanwhile, the Money Metals Depository --
https://www.moneymetals.com/depository
Like Swiss rival Credit Suisse Group, UBS is caught between the prospect of losing money to hold client deposits and imposing fees that could prompt customers to take their business elsewhere. Amid an extended period of ultra-low and negative interest rates, the lenders have to pay central banks to park excess cash in Swiss francs or euros.
UBS' decision comes after Credit Suisse said it will impose a fee of 0.4% on customers with euro accounts of more than 1 million euros from September. UBS has already said it will introduce negative rates for clients holding large Swiss franc balances, while Credit Suisse said it is also considering the step.
Clients of UBS can mitigate the 0.6% charge by moving cash into "fiduciary call deposits" outside of Switzerland -- financial instruments that can be called within two working days, the bank said. Those deposits are subject to a 0.375% annual fee. The best scenario for the bank is when clients move their cash into equities or bonds. ...
... For the remainder of the report:
https://www.bloomberg.com/news/articles/2019-08-06/ubs-to-charge-wealthy...
* * *
Join GATA here:
New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
Friday-Monday, November 1-4, 2019
https://neworleansconference.com/noic-promo/powellgata/
* * *
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
