Some Banks Now Charging For… Deposits? Yes!

Via Bryan of Why Now?, we have this from CBC:

Faced with a torrent of cash from customers looking for ways to escape the market turmoil, some banks have begun charging major depositors to hold their cash.

Bank of New York Mellon Corp., a leading U.S.-based custodial bank, said in a note to clients this week that it will introduce a new fee on large cash balances effective Aug 8.

Such deposits typically earn no interest but are covered by U.S. deposit insurance, a cost the banks must cover.

BNY Mellon said it will charge .13% on abnormally large cash deposits with an additional fee if the yield on a one-month U.S. Treasury Bill falls below a certain point.

Ah, well, if this reaches the consumer level, it’s back to the old ways. Most of us will not need a very large mattress…

 

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