Savers in Germany are facing the prospect of losing cash in their bank accounts, after a small Bavarian lender announced it will start charging negative interest rates on their deposits.

Gmund am Tegernsee’s co-operative savings bank has decided to pass on the European Central Bank’s negative deposit rate to retail customers. The town, which has a population of just 5,767, is on the shores of lake Tegernsee, a resort area south of Munich popular with actors and sports stars.

For now, only those clients at Raiffeisenbank Gmund am Tegernsee with more than €100,000 (£86,500) of savings will face the 0.4pc annual charge.