EBS Impose Savings Cap

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Charlie Weston in the Indo reports here on EBS imposing a savings cap.

Cap is 500k on the aggregate of all EBS instant access savings (EBS recently stopped selling term deposits). Applies from 24 November 2020.

Many European banks are now applying negative rates on positive Euro balances over 500k/1million/2 million or in some cases as low as 50k.

Interesting that EBS have chosen to go down the cap route, like the credit unions, rather than the negative rates route.

Will AIB follow suit? or are they too big to be imposing caps?
 
Hi Ciarán
From the banks point of view, the cap makes much more sense.

Imagine the uproar if banks started charging interest on deposits!

Brendan
 
Yeah, for smaller institutions, like EBS, and CU's, caps make sense.

But for AIB, BoI etc what are they going to do? Caps surely won't work given a more larger number of large depositors. The only alternative is negative rates.
 
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