Well it looks like economic growth is non-existent. China's growth story is coming to a close.
https://www.apra.gov.au/preparations-for-zero-and-negative-i…
What do you plan to do with your money as you will soon be paying for the opportunity to have your deposits held at the bank?
Stonks might be an option, but how do you know you aren't buying a Stink when the house of cards comes crashing down…
Bitcoin, obviously, Ozbargain tells me it's rock solid!
Buy bitcoin
Obviously, GME all the way!
Hi, welcome to mortal kombank
Choose your destiny fund:
-No risk, no reward: cash at bank
-Low risk, low reward: ETF stonk
-High risk, high reward: individual stonk
mortal kombank
haha genius
China is already doing that with their scam coin e-YUAN. Their central bank now has the ability to track, freeze and reverse transactions on a whim. They've full control of the money supply and can inflate, deflate, raise or lower the cash rate to stimulate the economy with zero downtime.
Imagine Xi Jinping having 250,000 in their e-wallet earning 1% APY on Monday only to wake up the next day to see that it's 249,999 with a -1% APY. The CB overnight saw that Xi had too much money and changed the APY to encourage him to spend to help stimulate the economy. Xi refuses to spend and is hit with a -2 APY the next day. This goes on until the negative APY is in the double digits. Xi capitulates and starts to spend franticly in hope that the APY changes to positive.
Digital currencies are the future of money control. Every country in the world is watching China as a test case. The only question is will your country follow China and implement a walled garden CBDC where the government has carte blanche over your money or follow El Salvador's permissionless currency roadmap.
Your money, Your choice.
I don't recommend crypto, but bitcoin is decentralised, the government can't control it.
No one is using e-yuan outside of china.
Yes, I know you're making a different point.
Banks will never charge you to store money because they need deposits to fund their mortgages.
No, they don't. They print money using fractional reserve banking.
https://www.youtube.com/watch?v=-09ap6zIB6I
Australia uses a similar system called capital adequacy requirement. Different name, same risk.
Wrong, they still need your savings.
Do you go to the school of youtube?
Please do some serious reading, you are spreading falsehoods and you don’t even know it.
"Banks obtain funding from four main sources: retail deposits, wholesale deposits, wholesale debt and equity. Excluding equity, around one-third of major banks' funding is from retail deposits. "
Source, Reserve bank of Australia.
https://www.rba.gov.au/publications/bulletin/2019/mar/develo…
@Blargman2001: As you are stating (I think) all four of those things are real money.
AsThe printed money is the RBA and other government treasuries. The banks themselves have nothing to do with it, just conduits.
@surg3on: I'm stating banks need retail deposits to fund their activities. If they started charging people to deposit money a third of their funding will dry up.
Not to say they don't print money through equity etc. Just annoyed I still got negged because I was a sheeple who chose a reputable source for my information rather than YouTube.
@Blargman2001: Well the only way they can push rates negative is by replacing more of the banks funding with printed cash from the RBA. The goal being to get people to spend the cash, not that that ever works.
While they do need money to fnd their mortgages they don't need all the money the public is saving and the government is printing right now. To push rates negative all teh government has to do is print some more money and offer it up to someone to borrow at -0.5%. That will push out other money that the bank was paying more for.
This year, I invested in pumpkins. They've been going up the whole year and I got a feeling they're going to peak right around next January. Then, bang! That's when I'll cash in.
Bad time to be poor, but I've got nothing much to lose. I watch each cent coming in and out of my account, I wonder how much we would be theoretically charged for them to hold our cash, like would we get around it by just withdrawing every pay day?
'Of course, it costs banks to lend you money and even a negative interest rate loan will come with fees and charges to cover the bank's costs.'
There's always money in the banana stand.
With rock solid and predictable capital protection? Nothing really. Perhaps a diversified portfolio of boring blue chip stocks but even then who knows? Gold is another one but again, capital protection isnt there.
The next likely interest rate move is up not down. The apra page linked is just discussion papers on how such a situation might be handled, it is not the current expected direction.
Bit coin
*** Not financial advice
Bit Corn
I'm all about stacking those kernels.
A couple cars on Car Next Door should net you a easy 30% pa.
Dyor.
Just hedge your risk with options. That's what they're for.
No one got rich from saving money in a savings account.
Study, take risk and invest.
I'm mainly in properties and Bitcoin plus some shares.
Physical metal - silver, gold, platinum. Stored in a safe deposit box.
Gold certificates.
Wont happen. Inflation forecasted to be 4% at the end of this quarter. Rba will raise rates slowly.
I’ve gone into considerable debt to buy a pbs pharmacy licence, interested to see what ozbargainers view is on this as an “investment”. Ie. will it go the way of the taxi license? Or will Colesworth eventually be able to operate pharmacies and snaffle all the licences for huge $$? I think the sharks are still circling the prey https://www.afr.com/companies/healthcare-and-fitness/wesfarm… so I’m thinking it’s a matter of time.
Pokemon Cards, Retro Game Hardware/Games, Crypto, etc
Serious though, if High Interest Savings Accounts (HISA) go negative, wouldn't you just transfer the money into your daily transaction account which as far as I can see, has no interest rate?
Graphics cards.
Tell us your address and we will let you know.
There's this park just down the road from me, under the slide on the playground area is where you should put it. It will be 100% safe trust me.
TAB
if Rates Go Negative you don't get cash, you borrow lots of $ and get paid to do so.
You and I, as retail banking customers, would never ever get paid to borrow money. Only really large borrowers with virtually zero risk profile could enjoy that privilege.
The OP's question is weird anyway. Why worry about something that hasn't happened, and is very unlikely to happen? Worry about it if it happens, and it doesn't take more than a minute of thought to think up a dozen ways to stash value.
It's unlikely to happen, however in Denmark one bank did offer a mortgage product where they paid people to borrow.
https://www.google.com/amp/s/amp.theguardian.com/money/2019/…
Judo Bank has a 5 year term deposit for 1.6%. 1.5% if interest paid monthly
Judo Bank has a 5 year term deposit
Taekwondo Bank is much more popular…
It depends what you want - if "avoiding" negative interest rates is what you want, you probably don't understand why you were holding cash in the first place.
The interest rate is the benefit/cost keeping your value in a stable state
to have your deposits held at the bank?
Why do you have deposits sitting in a bank ??
Rates won't go profoundly negative, would you really want to keep it in cash if you're losing 1/4 of a % per year?
Looking around the room, you could store it inside a large, not well known brand of portable air conditioner that nobody would ever care to steal if they broke in. Or you could store it in the boot of your car where the tyre is, or the roof. Or you could bury it in the yard.
I'm sure there's heaps of places.. personally I'd prefer the bank.
Like most comments, I don’t think there is much chance of rates going negative here in Aus. However to store cash, I would recommend a combination lock safe. Digital ones are easy, but batteries need replacing regularly, and they are also more expensive. I prefer the analogue wheel style safe, as you never need to change the batteries. Safes also have some protection against fire.
https://cmisafe.com.au/domestic-safes-home
Well first what your going to want to do is take all your money out of the bank then
SHOVE IT UP UR BUTT
Haha got him
"China's growth story is coming to a close."
Dumb heads get even dumber, blindfolded by stories like this. You sound like Gordon Chang predicting the collapse of China's economy since the 1980's. Sadly he's still waiting for this to happen if it ever happens
This is why they need to phase out cash before they can introduce negative rates.