HSBC to charge for holding deposits

Financial Times ^ | 05/20/15 | James Shotter and Laura Noonan

[Enlightened1]

HSBC has become one of the biggest global banks to say it will begin charging clients on deposits in a basket of European currencies

The decision underlies the extraordinary measures banks are taking to prevent their profit margins being crushed in the record low-interest rate environment.

HSBC has written to other banks to warn it will start charging them for deposits in euros, Swiss francs, Danish krone and Swedish krona — all currencies of countries that have negative interest rates — at its UK, German and Hong Kong operations from this summer.

It is the first UK bank to announce such charges following similar announcements from Swiss, German and Nordic institutions.

“HSBC charges banks for deposits they hold with us in currencies where negative interest rates apply,” the UK-based lender said in a statement on Tuesday. “Banks affected have been notified and we continue to monitor the situation.”

The unusual steps come after the European Central Bank became the first big central bank to announce a negative deposit rate — in effect a penalty on banks parking their surplus cash — last year.

Central banks in Sweden, Denmark and Switzerland have a

[MrB]

IOW, “negative interest rates”.

[jalisco555]

Literally better to put your money under a mattress.

[Resolute Conservative]

I already do something different, other than the 401 at work I have no money in 1.2% bearing accounts.

[jalisco555]

If there was a Republican in the White House there would be no end to the media stories about the difficulties faced by retirees who rely on interest income to make ends meet. But since there’s a Dem, crickets chirping. Just like homelessness disappeared Jan. 20, 2009.

[grumpygresh]

“Literally better to put your money under a mattress.”

There’s a war on cash, so your “money” will have to be something else like silver, gold, lead

The idea is for everyone to have a government bank account for surveillance, punishment and confiscation.

These government accounts will inevitable be hacked (by the government) and you will need an implanted RFID chip for security.

The implanted RFID chip to buy and sell is the mark of the beast; the chip can receive info that can change your DNA. Once you take the chip, it’s a one way ticket to Hell.

[tbw2]

Pay off all debt for a guaranteed rate of return equal to the interest rate.

[jalisco555]

Pay off all debt for a guaranteed rate of return equal to the interest rate.

The single best financial advice anyone can give. I did it years ago. It's wonderful to be debt free.

[factoryrat]

A banker's wet dream; being able to charge depositors for holding onto their money.

Negative interest = the new national bank of Seeley.

You can now gain more interest by stuffing your mattress with your earnings than you can by leaving in the hands of “trusted” financial professionals (using the term “professionals interchangeably with “thieves” of course).

Never trust someone else with your financial well being, and especially those “financial professional” who tell you that it is foolish to not trust them.

[Myrddin]

I did a little better than that. My son failed to save enough to cover his wedding and other costs. My wife took out a credit card on OUR credit to cover the costs. He was supposed to pay it back. I got a call from the bank. Payments were just under the required amount. That threatened MY credit rating. I wrote a check for the balance to the bank, the a promissory note for the same APR he was paying the bank. My $13k payoff is now yielding about $90/month in interest instead of having the bank take it. I paid that debt off with money sitting in a savings account netting .01%. Two can play at that game. My exposure is my son's creditworthiness.

I'm buying "hard goods" at this time as I expect the currency to crap out before the end of the year. Paying off the mortgage on my 2nd house was a good way to move some cash out of the bank and wipe out on ongoing interest obligation.

[tbw2]

We’re Dave Ramsey aficionados.

[tbw2]

I believe the original banks did the same, payment for keeping the money safe from theft.

[lowbridge]

“Just like homelessness disappeared Jan. 20, 2009”

Actually homelessness disappeared november 3, 1992.

Recall during the reagan-bush years, every thanksgiving to christmas seasons the news media drowned their viewers in all sorts of “special reports” on the homeless that lasted anywhere from a few minutes to hour long specials. Every year up until the presidential election of 1992. Clinton won. And after that, no more homeless problems reported on the news in the following days, weeks, months, years.

I have no doubt if bush had won the election that night, the special reports on the homeless would have continued.