French bank to pay interest on cheque accounts

14th April 2005, Comments 0 comments

PARIS, April 13 (AFP) - Caisses d'Epargne said Wednesday it would pay interest on cheque accounts, the first major commercial French bank to offer such remuneration as allowed by a new law that took effect last month.

PARIS, April 13 (AFP) - Caisses d'Epargne said Wednesday it would pay interest on cheque accounts, the first major commercial French bank to offer such remuneration as allowed by a new law that took effect last month.

The French law, enacted in early March, lifted prohibitions on remuneration on deposit accounts in line with a ruling by the European Court of Justice on October 5 following a complaint filed by a foreign bank.

Most of the other major French banks have indicated they would not offer such accounts, saying they did not think customers were interested.

But Finance Minister Thierry Breton hailed the move by Caisses d'Epargne as a boon for consumers Wednesday.

Questioned about the bank's announcement as he left a cabinet meeting, Breton replied: "It is excellent news for consumers."

Caisses d'Epargne said that interest would be paid, from Thursday, on cheque accounts at a rate between 0.5 percent and 1.0 percent, without billing for cheques or an increase in service fees.

The remuneration will be available to clients who have subscribed to services package Satellis, at a cost of EUR 6 (USD 7.75) per month, said the bank, which has 4,700 branches and 26 million clients.

For those without the subscription, they will receive 0.5 percent interest per year for a monthly fee of EUR 0.50.

© AFP

Subject: French News

0 Comments To This Article