Calculation of negative interest rates on Foreign Currency Accounts

As you have probably already seen from the current debate in the press and in politics, the negative effects of monetary policy are increasingly dominating the macroeconomic development not only of the European Central Bank, but also of the central banks around the world, also with a view to the coming years.

While the official policy interest rates of many foreign central banks may still be in the positive range, the investment of the customer funds maintained in our house, however, has already led to a negative deposit rate on the money market for several months.

As a Sparkasse, we have to pay this interest rate in fact for investments and we cannot avoid it from an economic point of view, passing on this increased burden, which was ultimately initiated by the foreign central banks, to our customers. We therefore charge a negative interest rate in some currencies for the daily balances in your foreign currency account.

The current news situation, and in particular the general interest rate outlook of the central banks, also shows that it is to expect, that a gradual exit from the extraordinarily expansionary monetary policy and thus a short-term interest rate increase continues to be absent and further adjustments to the negativ interest rates will continue to be made in the future may be necessary.

The amount of the negativ interest rates corresponds to the monthly given negative interest rate by our Landesbank, which we will pass on to you. With this in mind, we recommend that you contact your international business advisor to either reduce the amount of the negativ interest rates or avoid it altogether by placing a time deposit investment in this currency.

Below you will find an overview of the negative deposit interest rates of Sparkasse Dortmund per offered foreign currency. The corresponding negativ interests apply to all types of foreign currency accounts in our house.

Valid from: 01-03-22