We’re all used to earning interest at a bank when we save money. But could a financial institution soon charge you ‘interest’ to park your money there? Yes, says Ken Tumin, the man behind DepositAccounts.com. Interest rates are now so low that saving money could soon cost consumers. In today’s Red Tape Chronicles podcast, Tumin explains this upside-down world — which we might be living in for a couple of years. And what savers should do about it.
It sounds crazy, but it’s true. Interest rates are so low that consumers might soon have to pay interest to their financial institutions. In fact, some already are. TIAA-CREF, where many U.S, teachers park their retirement money, has told investors that it could start assessing fees beginning in January, and it might also retroactively charge such fees for 2020 when interest rates eventually rise.