Will savers soon have to pay their banks interest? The perils of low interest rates

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.

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About Bob Sullivan 1637 Articles
BOB SULLIVAN is a veteran journalist and the author of four books, including the 2008 New York Times Best-Seller, Gotcha Capitalism, and the 2010 New York Times Best Seller, Stop Getting Ripped Off! His latest, The Plateau Effect, was published in 2013, and as a paperback, called Getting Unstuck in 2014. He has won the Society of Professional Journalists prestigious Public Service award, a Peabody award, and The Consumer Federation of America Betty Furness award, and been given Consumer Action’s Consumer Excellence Award.

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