German Bank Boosts Bitcoin — Negative Interest Rates Hit Every Account

Bitcoin-cautious Germany has seen its first bank demand that ordinary savers pay it to hold their money — even as little as €1.

According to multiple local press outlets including the Süddeutsche Zeitung on Nov. 19, the Volksbank Raiffeisenbank Fürstenfeldbruck (VRF) in Northern Bavaria is now charging 0.5% negative interest rates on the smallest deposits.

Bank on negative interest rates: “We had to”

“We had to do it,” the publication quoted the bank’s management as saying. 

The reason, they said, was the cost of “parking” money at the European Central Bank (ECB). 

In Germany, negative interest rates previously impacted only deposits above €100,000, which constituted an interest-free allowance. VRF’s move makes it the first lender in the country to target savings below that level.

“Recently, more clients have been coming to us from other banks where they’ve already used up their allowance,” the management continued.

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