March 2016

Beware! Negative Interest Rates May Be Coming

ABF Journal illustrator Jerry Gonzalez predicts that the mattress may be a better place to stash your cash than the bank.

Long years of low interest rates have frustrated consumers accustomed to earning money from their savings accounts, which now earn less than 1% at most banks. Many savers felt hopeful when the Fed raised the short-term interest rate in December and hoped that they would also benefit. But now negative interest rates, instituted in Europe and Japan, are having the opposite effect — depositors in those countries have to pay banks to keep their money. Maybe it’s time to revisit the mattress as the safest place to keep that extra cash.