Bank has negative interest?

[Mercator]

Last I looked, the current interest rate was -5%. Is that suppose to be correct?

[Makzimia]

Yes, the Island bank charges 5% interest per 7 days, this is a non negotiable island tax, by order of the creator

Makz.

[Mercator]

So we actually PAY the bank to keep our money, instead of them paying us to use it? That seems odd, though I am sure you've got your reasons.

But then, what is the incentive to keeping your money in the bank and not dropping caches in every private chest around the world?

[Silentus]

Yeah, a long time ago we had some conversations an the forums about the interest rate. It was decided that from a more historical non-advanced society stand point it made more sence. There is no real borrowing of money going on like current RL banking so a bank would make no money execpt from those who used its service.

The bank charges 5% (RL weekly) to cover the costs of keeping the establishment theft proof (building, staff, profit...). If you want to keep more than 2 mil (and arnt in a guild) there is a price to pay.

[Phoenix]

It's the king's tax.

<-- doesn't pay stinking taxes.

[clark625]

Silentus is right here--banks in the medieval times, and really up through the time of Adam Smith would actually charge customers for the protection of gold/money. Banks also had no means of interconnection, so if you deposited money in one bank, you would have to go back to that same bank to withdraw money. At least on Fredian, all banks have some type of communication, and you can withdraw your gold anywhere, regardless of which bank you deposited it in.

Oh, and, of course, banks were not insured at all, and it would be completely possible for someone to steal all the gold from the bank and screw all its customers. I can only imagine the danger if Makz had decided to allow characters to rob the bank....

[Silentus]

Wow... now theres a thought... robbable banks. hat would be fun... maybe a bank without the interest penalty with a higher limit that was robable.

Not very feasible I supose, but it would be cool

[Makzimia]

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