August 20, 2016

A DEFLATIONARY EPOCH:

This German bank is charging customers to hold their deposits (Ivana Kottasova, August 16, 2016, CNN Money)

Imagine paying 100,000 euros into your checking account, only to rack up negative interest rate charges of 400 euros a year.

That may sound like a terrible deal, but it's exactly what one small German bank is doing.

Raiffeisenbank Gmund am Tegernsee, a community bank in southern Germany, said it would charge a fee of 0.4% on deposits of more than 100,000 euros held in current accounts.

Which is what happens when the dollar I give you tomorrow buys more than the one you gave me today.

Posted by at August 20, 2016 1:33 PM

  

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