Negative Interest Rates Hit Every Account

Bitcoin-cautious Germany has seen its first bank demand that ordinary savers pay it to hold their money - even as little as €1.

According to multiple local press outlets including the Süddeutsche Zeitung on Nov. 19, the Volksbank Raiffeisenbank Fürstenfeldbruck in Northern Bavaria is now charging 0.5% negative interest rates on the smallest deposits.

Bank on negative interest rates: "We had to".

"We had to do it," the publication quoted the bank's management as saying.

In Germany, negative interest rates previously impacted only deposits above €100,000, which constituted an interest-free allowance.

"Recently, more clients have been coming to us from other banks where they've already used up their allowance," the management continued.

Germany could "Open floodgates" for banks.

As Cointelegraph reported, negative interest rates are beginning to form part of the ECB's monetary policy.

The phenomenon ultimately means that some portion of savers must pay banks to hold their money.

Last month, entrepreneur Cameron Winklevoss noted the cryptocurrency was the ideal method of escaping negative rates on bonds, which account for investments worth $17 trillion.