
Ask HN: What to do when your banks have negative interest rates? - quotz
The country where I live in has its own currency, and has introduced a negative interest rate policy. Negative interest rates mean that the banks charge you money in order to deposit your money at the bank. A friend of mine told me that if I would be able to create a solution for the problem the depositors are facing, he would invest in the idea, and pitch it to his network. Any ideas coming to mind?
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PaulHoule
This is the central bank telling you that bank deposits are socially harmful
and you should do something else.

Too many people and institutions want to make a risk free investment, but
those risk free investments do not actually exist in the economy. Banks get
pressured to loan to Greece or subprime home owners or subprime car loans or
African dictators or whatever the bubble of the day is.

People will tell you they have "no alternative" (we're a pension fund, think
of the widows and orphans, etc...) but the money you put in the bank will not
be there in 20 years if the problem persists. It might be there formally, but
between inflation, deflation, defaults, immisseration of some people at the
expense of others, it will have degraded spending power or be offset by damage
done to the economy at large.

Spend the money now on consumption or spend the money on a productive
investment. Building a house may be a good idea, but buying an existing house
or buying land to hold it is being part of the problem not part of the
solution.

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airbreather
Spend everything you earn on enjoyable activities and experiences,
hyperinflation may be next.

(somewhat sarcastic, but it is possible to make yourself miserable saving for
a future that never arrives, so in practice some balance should be applied)

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nabla9
Keep as little money as possible in the demand deposit accounts. Use cash or
credit cards as much as possible.

Any extra you spend withing a year should be put into money market, or
government bonds. Choose the maturity correctly.

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quotz
But how to make a business out of it?

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spacedog11
Invest your money in real estate instead of keeping it in the bank.

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quotz
Hmm I need to research more about the real estate market here

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chewz
The solution is safe vault at home.

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quotz
But how to make a business out of it? Make a giant super secure vault of some
kind?

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chewz
No just keep selling personal vaults. Maybe add an open to open it or manage
your finances ;-) With bluetooth.

