Seeing as transactions are becoming more and more electronic, the usefulness of a bank account for the average consumer should compensate for the capital risk.
For the majority of people the interest is irrelevant and removing it would greatly reduce stress on banks and lowering the risk of default.
Any thoughts on this?
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I bet this was poorly thought out or typed?
Because we all want our bank accounts to earn interest.
While interest is a benefit in the eyes of the consumer, it is negligible and gets eaten up by the yearly inflation.
It's nothing more than a pat on the head. If you truly wanted interest there's savings accounts and investment funds. Removing it would probably save banks millions.
I am the one that pays the bank just to store my money. I wish I got interests.
How much do you think banks make?
No, because banks charge way more interest than they pay out, plus charge fees. Besides, nobody with more than 3 marbles in their head uses a bank account as an investment or as a hedge to inflation.
What are you proposing? To introduce legislation that prevents banks from paying interest?
Yes they should have banks that can guarantee your liquidity and the liquidity of all their customers by not lending out any of the money but we make up for it was a small fee. I don't want them to gamble on non-whites and Shlomos new pyramid scheme for 2% in earnings.
The bank needs my money, I don't really need the bank.
Fuck off you worthless kike.
Explain the difference between time deposi and checking account, htan proceed to define what fractional reserve banking is.
I think that OP means that expecting banks to harbor risks for a small amount of interest is foolish. What he is proposing a bank that doesn't lend or reinvest your money which is risky in today's debt economy. Instead they should guarantee your savings since they don't have to promise any interest it would reduce their risk burden and in the event the economy fails your savings remain intact.
ugh, I should read what I wrote first
>Explain the difference between time deposit and checking account, than proceed to define what fractional reserve banking is.
you do though
your pay check needs to go somewhere
and to online order you need a bank account
Even those profits cannot hope to match the invested capital. Cutting the interest would help mitigating the risk of default.
I guess it's a self fullfilling prophecy otherwise.
>Bank starts offering interest
>Customers rush to switch to that bank
>Default happens
No, I can go get a paycard from walmart and withdraw it and put it in a safe.
Giftcards exist too if I were to be paid in cash.
The bank needs money to make more money. If they aren't risking money they aren't making money. Not taking risks is not helpful.
>Removing it would probably save banks millions.
Making banks money is not the aim of the game.
It would be perfectly reasonable to just nationalize most of the banking system and give all people access to government run full reserve banking though.
But it would cause massive disruption in the mortgage and loans business, so the transition would be hard to manage.
>Default happens
>People loose money and learn the difference between time deposit and checking account
> omg some sanity in banking ensues
>millions
Given the total cost of the bailout is now what in the trillions this seems irrelevant.
You get interest on your bank account ?
You fucking aspirational richfag, come and make an account here in Italy, and watch what happens.
People never learn for long, bank runs without government guarantees happen in cycles.
what
>But it would cause massive disruption in the mortgage and loans business, so the transition would be hard to manage.
We have no choice, banking is completely saturated with debt, there is no way of going deeper unless cash is eliminated and we all become debt slaves running like a hampster in a wheel for eternity.
The average American has like $500 in their checking account, and nothing for savings.
A lot of checking accounts have a minimum balance way over that to get a fraction of a percent of intetest.
Not making bank from the bank.
For all practical purposes, they already have. The current interest rates are so low they're basically zero.
Your whole argument is backwards: nobody is forcing banks to pay interest. They do it as compression with other banks, and as an incentive for customers to use their services. If it was harming their business, they're already allowed to offer less (or no) interest.
That's not how fiat currency works, government together with the central bank can take on infinite debt with zero cost. So if there is too much debt in the private sector, they can just take it on themselves.
The chicken littles on places like Zero Hedge will tell you the sky will fall if a country does that, but Japan soldiers on regardless.
Fiscal policy can just move money from creditors to debtors too.
Now of course this only works in sovereign nations, which is why the global elite wants to eliminate sovereignty. To lock in wealth in their hands.
I cash my paychecks at work. Online, bitcoins.
or like giftcards.
Really, people don't learn? How about give them a choice and see. Germany until EU had very stringent central bank because of memory of hyperinflation.
Those cycles correspond to central bank's unwarranted expansions - ABCT. It's a keynesian fairytale that it happens because animal spirits or whatever excuse.
I guess this is the answer I'm looking for. Interest being a meaningless incentive while transaction management is the key feature of for the customer. Cheques in old days and online banking in modern times.
This has been an interesting thread.
Fucking interest? What century do you live in?
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Regular savings: 0.01% APY, $5/month fee if balance below $300
Platinum savings: 0.03% APY, $12/month fee if balance below $3500
>Really, people don't learn?
Really. We keep falling for pyramid schemes. We keep falling for investment bubbles. We keep falling for the interest jew.
It happened long before central banks existed.
>3rd lost decade for Japan is something I know nothing about
>this only works
By works you mean redistribution (stealing) until it hits a wall of currency collapse? Keep reading Krugman, it's good for you. Just spend what you don't have and prosperity is certain.
>government together with the central can take on infinite debt with zero cost
250billion/year is certainly not zero, and when (not if) interest rate rises how much will it be?
Are you retarded? Consumers are lending banks millions of dollars for free. Every dollar you deposit, the bank makes investments with. And because of fractional reserve lending, they leverage your $1 to make $2 or $5 or $10 of investments. Then they pay you 0.2% interest when they made 10% and they advertise themselves as so much better than the other bank which only pays 0.1%.
If anything, banks should be forced to pay more interest, proportional to the interest they make from investing your money.
You did not address my argument.
>We keep falling
And? Are you suggesting a possibility of falling for a scham warrants implementation of certain and mandatory scham?
Yes. This would be a great method to convince them to stop using banks and the banking industry entirely in favor of cash. We should remove all incentives to participate.
>Are you suggesting a possibility of falling for a scham warrants implementation of certain and mandatory scham?
It's not always scam, central banking fiat can be run for the benefit of the nation's population too. You just need a strongly nationalist elite, not pozzed by the globalist jew.
Take Hitler's Germany, or current Japan, or civil war US greenbacks. A sovereign nation can use fiat money to implement policy much more flexibly than if it has to rely on fiscal policy ... and it can prevent bank runs at the same time.
The problem is globalists/jews corrupting government, everything else is just a symptom.
>We should remove all incentives to participate.
There really aren't many actual incentives at this point. It's literally more fiscally wise to stash a buttload of hundies under your mattress than putting it in a bank. The gas you use in one trip to an ATM or branch office cancels out all the interest you'll earn in ten years.
Trouble is the banks have taken control of the world and made it almost impossible to live in society without a bank account.
The only incentives is not having to worry about having your savings burn up in a fire or stolen by niggers/cops in a break in/raid or mugging/arrest. You just have to worry about your assets being "frozen" by the IRS or other agency instead.
I get where you're comming from. But.
Civil war greenbacks spurred a recession afterwards and fueled unnecessary war. Without the fiat both world wars would not be funded. What if fuhrer fails? You shouldn't put faith in political elite. Instead populace should be aware of danger of giving the governmet any power over money. It would solve most of the problems that plague todays world - this one simple statement/sentiment.
Which is why I said have a bank that doesnt loan so you don't have to risk your savings when liquidity dries up from a banking collapse
I would pay 100 a year for a fire repellent nigger proof mattress which also prevents Shlomos from making profits at the expense of my nation. In a fractonal reserve system that inflates the money supply but prevents deflation.
Japan is not good, they have stagnated a generation ago. People are not breeding for a reason, it's the lack of prospects and uncertainty. Granted their debt is held domestically, but still, where else will they go, who will they tax next to support ageing population? The debt driven growth "worked" only thanks to growing population. This factor is gone now.
>Deflation boogeyman is only scarry in FRB. Otherwise it's gentle rising of purchasing power as economy gets more efficient with accumulation of capital and technology. Nothing to be scared about.
They will tax the owners of the increasingly automated factories of course.
Factories which will be competitive on the world stage because they have pretty good engineers and entrepreneurs. Who will stay in Japan to do business because they like Japan, because it's filled with Japanese.
German banks are moving towards this too. Absolutely jewy and I'm ready to start a fight with mine