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The Unthinkable is Happening Right Now With Banks in Europe - They’re turning away large cash deposits!
Daily Trade Alert ^ | 04/24/2021 | Steve Sjuggerud

Posted on 04/24/2021 8:18:07 PM PDT by SeekAndFind

Banks in Europe are doing the unthinkable…

They’re turning away large cash deposits. I’m not kidding…

Deutsche Bank, one of Germany’s top lenders, is effectively turning away many deposits of 100,000 euros or more. And if it does accept your deposit, then it will charge you a 0.5% annual fee to keep your money in the bank.

You’re paying the bank to hold your cash. And at 100,000 euros, you’re losing 500 euros a year in negative interest.

If this sounds a bit crazy… well, it is.

Today, I’ll explain why it’s happening…

We’ve gotten used to near-zero interest rates at major banks since the global financial crisis. But paying them interest on your savings? That feels like an idea from another planet.

It’s happening all over Europe, though. The same is true for Commerzbank, Germany’s second top lender.

Here’s what a Commerzbank spokesperson had to say about it in a recent Wall Street Journal article…

Our primary objective is not to collect such a deposit, but to advise and reallocate funds to other forms of investment.

The fees are a tool to drive new large deposits elsewhere. And customers are getting the message.

One customer moved his money away from Commerzbank. His reasoning – shared in the same article – is incredibly obvious. As he put it…

I wouldn’t mind receiving nothing for my deposit, but being asked to pay is just too much.

With rates going negative, folks can’t stand the idea of losing money on their accounts. It’s a call to action like we’ve never seen before.

More than 230 banks in Germany alone are charging fees like this to private customers. While negative rates have been around in Europe since 2014, this is a relatively new phenomenon.

In 2014, when the European Central Bank first started charging banks negative rates, European banks pledged not to pass the cost to customers. For six years, they were able to eat the negative cost and still be profitable. That’s no longer the case…

With pandemic uncertainty, and people saving more due to staying home, folks have flooded banks with cash.

Deposits are a liability for banks. The more deposits a bank holds, the more money it has to store away at the central bank to cover those liabilities. Before the pandemic, this wasn’t a big deal… Banks could cover the negative rate charged by the European Central Bank and still profit on large deposits.

But with deposits through the roof, they can’t afford to eat that negative rate anymore. So they are either charging fees or turning away potential customers, using new online tools to guide folks elsewhere.

This is truly crazy. Banks thrive when they’re able to grow deposits. But now, they’re actively trying to avoid it. And everyday customers are facing the unbelievable scenario of paying to deposit their cash.

If you don’t live in Europe, this might not affect you personally. But this crazy banking quirk does mean something big for all of us as investors.

Folks in Europe now have a few ways to handle their cash…

They can pay a fee to store it at a bank – or earn zero interest, in some cases. They can keep it under the mattress, which isn’t ideal. Or they can put that money to work somewhere else… like the stock market.

That’s exactly what these low-interest-rate policies are designed to do… get folks investing. And with negative rates pushing Europeans out of the banks, that’s a near certainty in the months ahead.



TOPICS: Business/Economy; Society
KEYWORDS: banks; deposits; europe; interestrates
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To: airborne

I have for twenty years lived in all parts of the world, from South America to Russia to Israel to Saudi. What I have learned: Do not EVER think hyper inflation or currency collapse or wide spread banking failures will never happen in the US. I have seen our path in many countries, huge debt, ( usually run up by socialism) , erosion of nation currency buying power, increased inflation to hyper, then government defaults, bank defaults, then Venezuela as soon as three years ( study Argentina currency collapse- socialist government installed, spiral down to collapse). Tangible assets, real estate ( NOT rentals), as we are entering a huge commodity bull run with many shortages occurring,think commodities. Do remember- stock markets still rise but rarely past the REAL inflation rates and they are paper, with many counter party ownership. The Great Reset has started, it’s goal is to wipe out / transfer all debt instruments of the world banks, there is more than 200 trillion in the world debt- wipe it out by “ Shemitah” or hyper inflation. The US cashless Fedcoin now in sub committee is designed to get rid of cash, Fedcoin accounts will automatically have taxes removed, trace every purchase, deny certain purchases. Do keep in mind, China’s now working cashless Yuan states gold can NOT be purchased , along with other “prohibited “ items....I can go on and on, Martin Armstrong’s blog is a good place to see all current financial news, also Sinclair’s , www.jsmineset .com, is closely tracking our meltdown. Put much prayer into your actions, pray for discernment.Every.single.institution is corrupted, huge money grabs/ debt forgiveness is going on behind the financial scene.


41 posted on 04/25/2021 8:34:58 AM PDT by delta7
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To: Brian Griffin

“With a new laptop, I would have to rent Word from Microsoft.”

freeware libreoffice works quite well ...


42 posted on 04/25/2021 8:39:39 AM PDT by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: SeekAndFind

https://hammeroftruth.com/2004/what-are-banks-for/

Has the text of a 1957 piece from Punch magazine on the subject.

Worth the read.


43 posted on 04/25/2021 8:43:32 AM PDT by mewzilla (Those aren't masks. They're muzzles. )
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To: delta7

I forgot to mention : For the first time, banks are buying gold up in huge quantities, it is now a Tier One asset....think about that- look up the World Basel III banking agreements to be instated in June....acceptance of sovereign digital currency ( cashless), gold declared a Tier One asset, huge debt instrument “ forgiveness” ( for banks, not private citizens), negative interest rates ( been in use in the EU for the past 3-4 years), the list getting longer every day.....wealth redistribution and total control is the goal.


44 posted on 04/25/2021 8:43:46 AM PDT by delta7
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To: airborne

Governments are printing trillions and why bother with large cash deposits when ‘free’ liquid cash can be put in to hard assets while the banks watch the money inflate to nothing with no accountability.


45 posted on 04/25/2021 9:12:48 AM PDT by Organic Panic (Democrats. Memories as short as Joe Biden's eyes.)
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To: delta7

I have for twenty years lived in all parts of the world, from South America to Russia to Israel to Saudi. What I have learned: Do not EVER think hyper inflation or currency collapse or wide spread banking failures will never happen in the US. I have seen our path in many countries, huge debt, ( usually run up by socialism) , erosion of nation currency buying power, increased inflation to hyper, then government defaults, bank defaults, then Venezuela as soon as three years ( study Argentina currency collapse- socialist government installed, spiral down to collapse). Tangible assets, real estate ( NOT rentals), as we are entering a huge commodity bull run with many shortages occurring,think commodities. Do remember- stock markets still rise but rarely past the REAL inflation rates and they are paper, with many counter party ownership. The Great Reset has started, it’s goal is to wipe out / transfer all debt instruments of the world banks, there is more than 200 trillion in the world debt- wipe it out by “ Shemitah” or hyper inflation. The US cashless Fedcoin now in sub committee is designed to get rid of cash, Fedcoin accounts will automatically have taxes removed, trace every purchase, deny certain purchases. Do keep in mind, China’s now working cashless Yuan states gold can NOT be purchased , along with other “prohibited “ items....I can go on and on,

Martin Armstrong’s blog is a good place to see all current financial news, also Sinclair’s , www.jsmineset .com, is closely tracking our meltdown. Put much prayer into your actions, pray for discernment.Every.single.institution is corrupted, huge money grabs/ debt forgiveness is going on behind the financial scene.


Good info- thanks.


46 posted on 04/25/2021 1:48:00 PM PDT by Faith65 (Isaiah 40:31 )
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To: AlmaKing

Let’s create/organize the Free Republic Bank!!


47 posted on 04/25/2021 2:52:36 PM PDT by SgtHooper (If you remember the 60's, YOU WEREN'T THERE!)
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To: Faith65

Sorry, correction. Www.jsmineset.com shows global debt and liabilities at an astounding $2.3 QUADRILLION, a mere $300 Trillion in pure debt. Now you may begin to understand what is upon us.


48 posted on 04/25/2021 6:45:27 PM PDT by delta7
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To: V K Lee

To me, the story is not clear on certain details. Just because someone puts 100,000 Euros in a bank doesn’t mean it can’t be invested by the bank.

One think I do know: banks act in their own self-interest. So what the government and central bank is doing is the undoubtedly the source of the trouble.

But the specifics elude me. And I don’t think the story fully explains what’s going on.


49 posted on 04/26/2021 5:23:33 AM PDT by poconopundit (Hard oak fist in an Irish velvet glove: Kayleigh the Shillelagh we salute your work!)
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To: Brian Griffin
With a new laptop, I would have to rent Word from Microsoft.

Why? There is no reason for that.

50 posted on 04/26/2021 5:41:21 AM PDT by ShadowAce (Linux - The Ultimate Windows Service Pack )
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To: napscoordinator

They are not really referring to the guy on the street. Do you know a lot of folks with 125k in cash—-looking for a place to stash it? Probably not.

But companies are in this spot often. They need access to deposit accounts to transact business. Forcing them to move money about between different accounts can be expensive.


51 posted on 04/26/2021 5:47:20 AM PDT by Vermont Lt (. )
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To: poconopundit
Just because someone puts 100,000 Euros in a bank doesn’t mean it can’t be invested by the bank.

Legally, they are prohibited from investing deposited fund in certain ways. This is to prevent total loss of those funds, and maintain access by the depositor. Really, the only accepted way of investing those funds is through lending them out to borrowers.

People are not borrowing at the moment. Many more depositors, meaning more negative rates from the Central Bank, far outweigh the borrowers. The interest they would get from borrowers is being eaten up by the negative rates the banks have to pay the Central Bank.

That is why they are now refusing deposits.

52 posted on 04/26/2021 5:51:08 AM PDT by ShadowAce (Linux - The Ultimate Windows Service Pack )
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