I've been thinking about the new $15/month charge from Citi for not maintaining your checking account at an amount greater than $6k (most people can't). Given that they are only paying .01% on checking right now, which is $1/yr on $6k, they are essentially paying you a negative interest rate for keeping your money with them.
I'm not saying that we are actually in a deflationary environment right now, but I've always wondered about how banks would handle that from an interest rate perspective (negative interest?). I guess that my question is now answered.
Yea, if we were experiencing deflation, which uncle Ben says we aren't. This happened in Japan during the late 90's. Western banks were charging their banks negative rates in order to hold yen. BNY was imposing negative interest to large account recently, but I think that is due to other factors. Government bonds can go negative too.
Here in Brazil, all banks charge you a checkings account fee (ranging from 3-15 USD usually, depends on the account/bank) if you have less than say USD 20k with them. Isn't it like that in the US? Have it only changed recently?
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