Icelandic Bank to Start Charging Low Earners

MP Bank has decided to start charging its lowest earning customers ISK 5,000 a month (EUR 30/USD 44) to operate their accounts, in what the company heralds as a change of emphasis.

In a letter sent to customers, the bank says that those with less than ISK 2 million (EUR 12,885/USD 17,465) in credit, savings, assets or loans with the bank will need to pay in the future.

The letter explains that MP Bank wants to emphasize its services to companies and individuals with high turnovers and a need for specialized financial services. As a result the bank has decided to charge others ISK 60,000 a year in fees, if they have less than ISK 2 million with the bank. The fee is to be paid monthly, at ISK 5,000, starting on 1st August.

~ snip ~

MP Bank has traded as an investment bank since 2003, but branched into commercial banking in 2008 – marketing itself as an alternative to the big three nationalized banks during the financial crisis: a sort of protest bank, or bank for the people. Now the crisis is largely over and the “big three” are regaining trust, MP Bank has decided to change its emphasis again.