What does a -0.75% Interest rate mean?

[audreyh1]

Now, compare the above to the US where the Fed fund rate is about 0.13%, but the US inflation is 0.76% in Dec 2014. Hey, that is worse than the EU, because you lose 0.63% while in the EU you break even.

Hey, my FDIC insured savings account is paying me a 0.90% interest rate. I'm not having to accept 0.13% anywhere.

 

[NW-Bound]

Of course your 0.90% is still a tiny bit better than the inflation rate, or what your bank gets for its cash sitting at the Fed.

But, but, but your bank is laughing all the way to the bank - wait, they ARE the bank! - because they are still charging double-digit rates for credit cards.

Funny business! I thought Bitcoin was weird, but fiat money business is strange too.

 

[meierlde]

Why take a negative interest rate when you could take currency from the teller to the safe deposit box?

I just checked and the Swiss Franc currently has about the largest size currency in circulation 1000 francs, while the Euro only comes to 500 Euro which today is about 499.9 swiss francs. So if you could get ahold of the notes thats what to put in the safe deposit box, The US is a piker having only $100 bills.

 

[audreyh1]

Of course your 0.90% is still a tiny bit better than the inflation rate, or what your bank gets for its cash sitting at the Fed.

But, but, but your bank is laughing all the way to the bank - wait, they ARE the bank! - because they are still charging double-digit rates for credit cards.

Funny business! I thought Bitcoin was weird, but fiat money business is strange too.

Sure they're making tons of money - on other people! I get a 2% rebate on my credit card charges, so I'm also delighted!