The Swiss National Bank (SNB) yesterday announced that commercial banks in future will pay a little less interest on sight deposits as it expects the negative rate regime to remain in place for a while to come. Swiss customers hold relatively large amounts of their assets in cash.

Credit Suisse decided therefore to demand a fee from rich clients for cash holdings on Swiss franc-denominated accounts. Switzerland’s second-largest bank soon will inform its clients about the step, «Bloomberg» reported, citing sources within the bank. Credit Suisse didn’t comment.

Following a Trend

Customers at Credit Suisse with more than 1 million euros in cash already are asked to pay a fee of 0.4 percent. Rival UBS in the summer introduced a similar charge on Swiss franc accounts for customers with more than 2 million francs in cash.

A number of private banks introduced similar charges in the past but most companies, before taking a fee are trying to get the clients to invest their cash in shares or other products.

Economists say that the pressure on the franc is a function of its role as a safe haven.