People are Constantly Losing Money on Their Bank Deposits

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Those who rely on banks to preserve the value of their savings with low-interest rates or even negative rates in some cases and the increasing inflation rate will slowly be forced to look for alternative investments in order not to lose money on deposits.

Time ago if someone did not know how to play the stock market but had savings, he could deposit money into a bank with interest. Thanks to this he earned a little or even lost, although very little. Now the matter is becoming more complicated. Some of the most important Central banks have set even negative rates charging second-level banks when they park their money with the central bank.

Savers in trouble with deposit rates near zero or even under

We already wrote an article about the Refieisen bank in Germany which imposed a 0.5% negative rate on even small saving accounts. The low rates for savers are a consequence of the EBC monetary policy which imposed negative rates on the lenders when they park their money with the central bank. The new head of the European Central Bank made a bold statement, saying that we should be happy to have a job rather than to have savings.

It is unclear how this experiment will end and if higher interest rates will return back. However, this seems improbable and people will try to find alternatives to put their savings somewhere else. It might be gold, silver or maybe even cryptocurrencies.

Cryptocurrencies are already getting adoption in countries where the monetary system has failed. This did not yet happen in the U.S. and Europe but the bankers are on a good path to make this happen sooner.

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About Author

Ethan Hunt

Bitcoin Maximalist and Toxic to our banking and monetary system. Separation of money and state is necessary just like the separation of religion and state in the past. Also, pro-local, pro-global and anti-national.

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