Pictet to charge 0.75 percent for institutional SFR cash accounts

[February 10, 2015] ZURICH (Reuters) - Swiss private bank Pictet said on Tuesday it will begin charging institutional customers to hold Swiss francs, following rivals including UBS and Credit Suisse in a reaction to Switzerland's central bank decision to push down its interest rates on some cash deposits.

Pictet, a privately-held Geneva bank for wealthy clients, will apply a 0.75 percent charge for accounts of institutional clients of more than 1 million Swiss francs ($1.08 million), effective from March 1, a spokesman said in response to a Reuters request.

Switzerland's central bank began charging for franc deposits in a bid to deter flight into the haven currency in January.

It pushed down its interest rate on some cash deposits held at the central bank by commercial banks and other financial institutions to -0.75 percent.

(Reporting by Oliver Hirt, Writing by Kirsti Knolle; editing by Tom Miles)

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