Some clients who are considering making large cash deposits to the Bank of New York Mellon will have to pay for the privilege of doing so. Responding to huge cash deposits from freaked-out customers who are fearful of losing their money in the market, the bank will charge 0.13 percent for accepting high-dollar deposits some accounts.
The fee, which goes into effect Monday, applies to the excess balance of $50 million to some clients who average deposits larger than $50 million and make deposits that exceed their average levels. Some clients are exempted from the fee.
CNBC reports the bank, which is receiving so much cash that it’s affecting its insurance and capital ratio fees, explained the fee in a letter to clients. An excerpt:
“The transient nature of these new deposits prevents us from investing our balance sheet to cover the costs incurred from sudden and significant increases in U.S. Dollar Deposits with BNY Mellon.”