BNY Mellon Slaps Fee on Big Deposits

Negative interest rate reflects unlimited FDIC insurance and flight from money markets.

BNY Mellon is starting to charge customers whose balance exceeds an average of $50 million a month, the bank confirmed. It will put in place a fee of 13 basis points on the excess balances, and could increase that fee if Treasury bill rates go negative.

“In the past month, we have seen a growing level of deposits on our balance sheet from clients seeking a safe-haven in light of the global interest rate and credit environment,” the bank said in a statement. It noted that “Clients who maintain routine deposit levels will not be affected.”

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