NEW YORK (AP) ? Bank of New York is charging some of its institutional customers a fee to hold their cash.
The bank’s customers are mainly large pension funds and money market funds. It does not deal directly with consumers. Bank of New York collects dividends on stocks and holds cash deposits, among other things, on behalf of large investment funds.
On Thursday, the bank said it has seen such a large increase in deposits over the last month that it will charge a 0.13 percent fee to clients with “extraordinary high deposit levels.” Bank of New York didn’t say what that level was. The bank said clients have moved more money to cash as a safe haven. Investments like stocks and bonds have recently been volatile.