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View Full Version : Zero Percent Bank Interest Rates



Hatha Sunahara
19th August 2011, 09:57 AM
I noticed yesterday a letter posted to a bulletin board at my bank that answered the question of why the bank's interest rate on savings deposits was Zero %. In effect, they claim they have too many deposits, and not enough uses for the money. I know that instead of lending the money, they can deposit their reserves with the Fed for a low interest rate.

It didn't hit me until this morning that this is a big positive for PMs.

Owning gold and silver pays no interest either. So, if you have a choice of keeping your FRNs in the bank or buying gold or silver, you might be favorably disposed to buying the PMs because they are going up in price, while the FRNs in the bank are dropping in value due to raging inflation.

This just seems completely ass-backward to me. Are the banks asking people to take their money out and invest it in PMs? Or are they relying on the general belief that gold and silver are like Ron Paul? That they can't win, so nobody should vote for PMs? If this is the case, I see the banks collapsing soon. They are inviting their depositors to take their money out. My maximum balance in all my accounts is the amount of my monthly paycheck. I should just withdraw that every payday and leave a zero balance permanently.

Hatha

Cebu_4_2
19th August 2011, 10:21 AM
I hold a zero balance in all accounts unless I sell something in paypal then I give myself a couple days to find another deal to sell for more.