Interest rates on current accounts for corporates and non-bank financial institutions

Rationale

The pricing of  Wholesale Banking clients accounts is based on optimising client’s cash and liquidity management. The client interest rates are disclosed below and are applicable in the Wholesale Banking network. Local deviations may apply due to local regulations or business rationale.

Standard interest rates

Client interest rates are based on competitive market reference rates deducted with the banking costs for holding deposits, such as deposit guarantee scheme costs, and are paid and charged on the entire balance.

The following credit interest rates are offered:

• Local standard rates applicable to all Wholesale Banking clients in a uniform way.
• Local tailored rates can be negotiated in case a client has a minimum turn-over and a primary relationship, whereby standard operational balances are better priced than excess balances in line with regulations. Operational balances are defined as cash balances needed for daily banking operations and working capital needs.
• Foreign currency rates are standard interest rates.

Debit interest rates (unauthorised)

Standard conditions

reference rate plus 10%, with a minimum of 10%

Local credit interest rates

Standard conditions

reference rate minus 20bps, with a maximum of 0%

Foreign credit interest rates

Standard conditions	reference rate minus currency spread, with a maximum of 0%
Currency spreads	EUR USD, GBP CHF, JPY	20 bps 25 bps 25 bps

Note: for all other currencies ING applies a base rate or a quotation at request. The client rate is: local base rate or quotation minus 25bps, with maximum of 0%

The market reference rates can be updated if circumstances change.

Applied market reference rates and spreads

Market reference rate

Below the regular quoted currencies. In case the currency is not on the list, the pricing is on request. The spreads are deducted from either the domestic or international swap rate, depending on the location of the account*.

Group	ISO	Country	Reference rate	Credit spread (bps)
G10	EUR	European Union	1m Euribor or ESTER	20
G10	USD	United States of America	SOFR	25
G10	GBP	Great Britain	SONIA	25
G10	JPY	Japan	TONAR	25
G10	CHF	Switzerland	SARON	25
G10	AUD	Australia	Local base rate	25
G10	CAD	Canada	Local base rate	25
G10	NOK	Norway	Local base rate	25
G10	NZD	New Zealand	Local base rate	25
G10	SEK	Sweden	Local base rate	25
CEE	BGN	Bulgaria	Local base rate	25
CEE	CZK	Czech Republic	Local base rate	25
CEE	DKK	Denmark	Local base rate	25
CEE	HUF	Hungary	Local base rate	25
CEE	PLN	Poland	Local base rate	25
CEE	RON	Romania	Local base rate	25
CEE	RUB	Russia	Local base rate	25
CEE	TRY	Turkey	Local base rate	25
ASIA	CHN	China	Local base rate	25
ASIA	HKD	Hong Kong	Local base rate	25
ASIA	SGD	Singapore	Local base rate	25
ASIA	THB	Thailand	Local base rate	25
LATAM	MXN	Mexico	Local base rate	25
MEA	AED	United Arab Emirates	Local base rate	25
MEA	ISL	Israel	Local base rate	25

Note:

• ING holds the right to change the market reference rate with the respective notification as specified in the Wholesale Banking Conditions. Spreads can be adjusted without further notification for standard interest rates.
• ING will offer as per 1 April 2021 new reference rates for many IBOR market rates. More information can be found in IBOR transition.
• ING will introduce under normal circumstances negative credit interest rate for the clients in case the reference rate becomes negative. 
• For local base rates in the Netherlands, check Vreemde Valutarekening Renteoverzicht.

(*) In an efficient open market the domestic and international interest rate quotations are (nearly) the same level. In a more restrictive financial market, the domestic interest rate quotes offered in the country of origination (e.g. a HUF account in Hungary), may differ from a HUF account in the Netherlands, for which the smoothened 1 week mid-swap rate is used as market reference.

Calculation of interest

ING applies the following calculation standard, although local deviations may occur:  

• the interest charge is applied over the end-of day currency balance using simple interest
• the fixing of the benchmark is: 
  • for local base rate / quotation every Friday for the next week.
  • the overnight rates on a daily basis (ESTER, SOFR, SONIA, TONAR, SONAR). For ESTER, SOFR and SONIA the closing rate is used for the next day.  
  • 1m EURIBOR, the last working day of the previous month
• all currencies use actual/360 day-count convention, except for GBP, JPY and HKD (actual/365) 
• the interest settlement takes place in arrears every quarter

End of Year fee (all currencies)

The size and composition of ING’s balance sheet determines the regulatory costs, such as Deposit Guarantee Scheme to protect account holders and the Single Resolution Fund to buffer for the financial industry. In addition a bank levy is charged by each local government as a result of the financial crisis, based at year-end balances of the bank.

As ING is exposed to extra costs in case there are extra balances placed at year-end, ING reserves the rights to charge a flat fee of 15bps over the extra balances, which are defined as the difference between the aggregated clients year-end balance vs the aggregated client average balances over the period September up to and including November in the relevant calendar year. Local deviations may occur due to local regulations.