Negative interest rates and what it means

Wells fargo Atm now asks on withdrawals above $100 if I wanted 20's or 50's. Maybe so they wont run out on weekends as they frequently do.

Quote: AZDuffman

Use in the USA might be low because of the high fees. $4 to get my own money? No way.

That's a very reasonable assumption. The number of ATM withdrawals is much higher than the USA

Brits ATM withdrawals 46.7 per year per capita for an average of 67.5 pounds
USA ATM withdrawals 17.6 per year per capita for an average of $118
USA Teller withdrawals 6.4 per year per capita for an average of $715
Sweden ATM withdrawals 15 per year per capita for an average of 1000kr ~ $115

USA is very similar to Sweden which is a bit of a shock since Swede's use such little cash. But Swedes almost do not have the option to go to a teller window to withdraw cash. Almost no banks will do cash transactions at the teller. They have many reasons, but it the near impossibility of doing a bank robbery is one of them. It reduces their insurance, protects their employees, and the central bank in Sweden charges negative interest rate on cash. Commercial banks do not want cash, and unlike most governments, in Sweden the commercial banks are not required to hold a certain percentage of their assets in cash.

I don't have hard statistics on cash withdrawals at teller windows in Britain, but there are several stories circulating about banks that won't give up cash unless the customer gives them a valid documented reason.
http://www.bbc.com/news/business-25861717

Quote: Pacomartin

That's a very reasonable assumption. The number of ATM withdrawals is much higher than the USA

Brits ATM withdrawals 46.7 per year per capita for an average of 67.5 pounds
USA ATM withdrawals 17.6 per year per capita for an average of $118
USA Teller withdrawals 6.4 per year per capita for an average of $715
Sweden ATM withdrawals 15 per year per capita for an average of 1000kr ~ $115

USA is very similar to Sweden which is a bit of a shock since Swede's use such little cash. But Swedes almost do not have the option to go to a teller window to withdraw cash. Almost no banks will do cash transactions at the teller. They have many reasons, but it the near impossibility of doing a bank robbery is one of them. It reduces their insurance, protects their employees, and the central bank in Sweden charges negative interest rate on cash. Commercial banks do not want cash, and unlike most governments, in Sweden the commercial banks are not required to hold a certain percentage of their assets in cash.

One other thing in the USA is credit card rewards. Cash back speaks for itself. Or get a free airline ticket/hotel/etc. I have it set up so money goes from my account weekly, no interest charges, but a free ticket. Next year I plan to switch to some kind of cash rebate card. 1% cash back not a lot, but then again. $40 a week in gas is $2,000 per year is $20 back. On one item I buy. For 5 minutes work to set it up. Year after year.

I have had some fun lately adding up all this potential. Do plan to be more aggressive there in 2017. Done right with other discounts you can get 10-20% more out of your money.

Quote: AZDuffman

Next year I plan to switch to some kind of cash rebate card. 1% cash back not a lot, but then again. $40 a week in gas is $2,000 per year is $20 back.

I though cash rebate was only debit cards. Is it on credit cards as well?

Shopping in the future. No cash, no bags, no interaction. You'll just see a price tag on everything, touch a button and you will pay for it and someone will deliver it to your home.

Quote: Pacomartin

I though cash rebate was only debit cards. Is it on credit cards as well?

Actually I never heard of it on debit cards, only credit cards. DISCOVER started it now there are several. I will find the best for me and start working the plan. Been in major debt almost 20 years now but finally getting the last paid off, now I can do it.

I get cash rebates on one of my cards for ATM fees.

I get various percentages in cash rebates on my credit cards.

I also have never heard of cash rebates for straight-up debit card usage.

Quote: Dalex64

I get cash rebates on one of my cards for ATM fees.

I get various percentages in cash rebates on my credit cards.

I also have never heard of cash rebates for straight-up debit card usage.

The ATM rebates are usually for smaller banks, how they afford it I have no idea. Must cut a deal.

my $0.02

*Recent WSJ article predicts cash-back generosity on credit cards will come to an end soon [will exist but less generous].

*good to hear some ATMs are kicking out 50s

*for poor people I believe the cash-less-society advocates will have them use loadable cards. Many without bank accounts get their paychecks that way now. Downside is being in check-out line behind someone who is arguing their card is supposed to have money on it.

Quote: odiousgambit

my $0.02

*Recent WSJ article predicts cash-back generosity on credit cards will come to an end soon [will exist but less generous].

I can believe it because it is at the point where the system can be gamed. I am looking for one with perm .05 at grocery stores or/and gas stations. With that I can use gift card sales to parlay myself to getting like 80% savings on gasoline.

So far the cards all have limits to make the ultimate plan hard to do in scale. This discussion may require a new thread.

I think the ATM rebates are from smaller banks more desperate than teh big name banks to attract and hold deposits.

There are indeed various deals avaiable on debit cards.... for me of course its not worth it. The electronic nuisance is off putting enough without those messages about thank you for shopping at Applebees or something like that.

I don't know how Sweden can have a 'shadow economy' if everything is electronic. What do Swedes buy and sell that could circumvent the ubiquitous card system.
Its seems there has to be some way that all the visitors from Latvia who come to steal things and drive them back home can get rid of items enroute but if everyone has cards how do you buy a stolen dinghy or a trailer? Black marketeers don't like barter they like cash.