Makes sense now for anyone with savings who are carrying loans, to start clearing off the loans.
...Negative interest isn't practically feasible...
No matter how low the interest rate on the loan, it is higher than a zero rate on a saving account
There can hardly be a loan, where it is better to not pay it off than to pay it off
But not for individual retail customers. Human psychology is much more adverse to losing something than to not getting something. If banks started to deduct money from their customers' deposits it would lead to mass withdrawals, which isn't in their interest.Not only practical but has been in operation for a couple of years in the wholesale world
If banks started to deduct money from their customers' deposits it would lead to mass withdrawals, which isn't in their interest.
I would withdraw and put it into another bank that doesn't charge me negative interest or move it to a bank account outside of the country which doesn't charge me a negative interest rate.mass withdrawals? shoeboxes stuffed with cash under the bed - you must be joking.
Most people will just have to take the hit - what else can they do?
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