Nov 2 · 1 min read
Very true, banking services like checking and savings are only free or pay interest to the consumer because the bank can loan out that money for mortgage or auto loans or whatever else they want. If banks can no longer make enough loaning out money to justify free bank accounts and they have to start charging for banking, I wonder what effect that will have on the banking system.
Let’s say interest rates go negative and most banks start charging 2% per year on checking and savings accounts. For most I’m sure it would be worth the 2% yearly fee for the bank to keep their money, but how many consumers would stop using banks and decide it isn’t worth it?
