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To: FJB who wrote (71589)	2/12/2016 10:04:07 PM
From: Gottfried	Read Replies (2) \| Respond to of 95420

I think the bank pays for not using the money for lending: they ask somebody else [the Fed?] to hold it for them. Consumers would not pay for depositing money into a savings account. Consumers only pay interest when taking out a loan. But the interest on that loan would be higher because the bank must recover the money they paid to another institution to hold the bank's unused [not lent out] money. Perhaps there will be other articles explaining it better, now that many ask these questions.

To: FJB who wrote (71589)	2/12/2016 10:31:12 PM
From: Gottfried	Respond to of 95420

OT * FUBHO, the end of this article discusses negative rates and their possible effects in more detail nyti.ms excerpt: The policies in Europe and Japan are still relatively new and involve rates only slightly below zero. But if the policies become long-lasting, or negative rates go much lower, there are a lot of mind-bending ways it could affect routine transactions. For example, would people start prepaying years’ worth of cable bills to avoid having money tied up in a money-losing bank account? How about property taxes? Would companies and governments put in place new policies prohibiting people from paying their bills too early?** Or consider this: Many commercial transactions now take place with some short-term credit attached — for example, a company that gets a 60-day grace period to pay bills from its suppliers. Would that flip, and suddenly suppliers would prohibit upfront payment and insist that their customers wait 60 days to pay? Might new businesses sprout up that allow people to securely store thousands of dollars in bundles of $100 bills, or could people buy physical objects as stores of value that the banks can’t charge a negative interest rate on? from "pay the bills as late as possible" we'd switch to paying as early as possible to avoid the bank fee for holding our money.