How do negative interest rates work

[billy the kid]

In a nutshell, if negative deposit interest rates occur, the bank will charge you to use their banking facilities.
EG If you have a savings account, you will not earn any interest....
You will, instead be charged for example 1% to leave your money in the account.
Every time you withdraw digital funds by way of say, eftpos, or direct debit/BPay to pay a bill.,
the bank will charge you 1% of that withdrawal..
EG If you pay your electricity bill of $100 your account will be debited by $1.
Your bill therefore will cost you $101.
Of course another problem will be your offset account on your mortgage.
If you have an offset account, which is saving you money on your mortgage, you will
suddenly find your offset account balance reducing...there will be no benefit in having an offset account.
Of course, depending on the scenerio which presents itself, your mortgage may even go up...maybe down..
depending on circumstances....see the link...
Remember, negative interest rates need a cashless society to function.....
AND you will still be paying an arm and a leg interest rate for your credit card "privilege"

https://www.quora.com/How-will-negative ... rest-rates

One thing is for certain...you will not get the truth from a politician...

[billy the kid]

Negative interest rates don't have to be 1%....they may go to say 4%.....

[Black Orchid]

The operative word is "negative".

[Bobby]

I think Swiss bank accounts have been doing that for years.
They charge you to put money there.

[billy the kid]

There are several countries which use negative interest rates.
Australia is about to join them...
I think I once predicted within three years...
I'll adjust that to by the end of 2020....
16 months....tops....