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Verwahrentgelt

custody fee

noun fer-VAHR-ent-gelt Rare
People & Society Money

Also means

negative interest on deposits

Usage Note

Verwahrentgelt is a fee banks charge customers for holding deposits when central bank policy rates are negative. It became widely used in Germany from around 2016; unlike 'Negativzinsen', it is framed as a Dienstleistungsgebühr for safekeeping, avoiding negative consumer associations.

Examples

"Die Sparkasse führte ein Verwahrentgelt von 0,5 Prozent auf Guthaben über 100.000 Euro ein."

Natural Translation

The savings bank introduced a custody fee of 0.5 percent on balances above 100,000 euros.

Literal Translation

The savings-bank introduced a custody-fee of 0.5 percent on balances above 100,000 euros.

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