So let me get this straight, I have to PAY my bank to hold my money? Yes, you do. That is, if you live in Japan, Denmark, Sweden or Switzerland.
In a development few could have predicted, interest rates in many countries have recently turned negative. This means that rather than paying depositors for their savings, banks actually take money from depositors each month! Central banks in many countries have reduced interest rates into negative territory in an attempt to stimulate economies and to increase inflation. They want banks to lend more and people to spend rather than to save. The verdict is still out on whether or not negative interest rates will accomplish these results. What is not in doubt is that retirees, savers and the banks themselves are being punished by negative interest rates and that the use of cash in these countries is growing.
Cash is going out of style…or so some companies would have us believe. Indeed, cash may be out for many industries including technology groups and networks. But let’s be honest, who would benefit most from a mass consumer abandonment of traditional payments?
How can cash be king with interest rates hovering around zero?
Shouldn’t this headline read, “Forget About Cash, Its Return Stinks”?
Cash has a solid place in your portfolio, even with interest rates near zero.
How to profit from cash. Modern portfolio theory recommends keeping a certain percent of one’s assets in fixed investments. These fixed investments include, bonds, but also cash and cash equivalents.
This is because holding cash will normally give you a small interest payment along with stability as stocks and bond values teeter-totter. But is it still a good idea to hold cash when there is virtually no interest paid on cash? Yes.
Millennials use cash more than debit or credit cards, checks or digital payment, according to a new report by the Federal Reserve Bank of San Francisco's Cash Product Office.
NEW YORK (TheStreet) -- Cash was used in 32% of all transactions in 2015, according to the Federal Reserve Bank of San Francisco's 2015 Diary of Consumer Payment Choice, released last Thursday. This was higher than any other payment method, including debit or credit cards, checks or digital payment methods.
In this age of mobile payments, online commerce, and millions of places to use plastic payment cards, cash remains highly relevant and popular with consumers, the nation’s leading retailer ATM network insists. Houston-based Cardtronics Inc. on Thursday released results of a survey showing that consumers use cash far more than any other payment method to pay other people, and cash also remains the leading payment method in many merchant sectors.
Japan’s Tohoku region was transformed from seaside haven to ravaged wasteland when an earthquake-induced tsunami struck in March 2011. Over 15,000 people died. Among the survivors was a sad, leather-faced old man — I will call him Ogata san — who, when asked a few weeks after the tragedy what he would have done differently to prepare himself, answered, “I wished I had packed a decent pair of shoes, my toothbrush … and some cash.”
The Annual Percentage Rate (APR) is the bank’s terminology for interest – a fee you must pay for borrowing money from your financial institution. The language surrounding APR is everywhere – you see offers on billboards and in the mail. However, it isn’t immediately obvious to most of us how exactly credit card APR works. We’ve all been conditioned to understand the basics: that the lower the APR the better. There is much more nuance, however, to the topic at hand. This guide will walk you through everything you need to know about credit card APR.
Despite the fact that they received plenty of media attention during the past few years, "proximity" mobile payments, or mobile payments made at retailers' points of sale (PoS), have yet to hit the mainstream. Multiple reasons why exist, but perhaps the most significant roadblock thus far: Today's mobile payment systems simply don't offer a strong enough value proposition to compel consumers to use them consistently.
As the payments landscape evolves, cash remains a unique, resilient, and heavily used consumer payment instrument. Still, with new payment options and ways to shop, consumers are adapting how they view and use cash. The Diary of Consumer Payment Choice (Diary) serves as the Cash Product Office’s (CPO) primary data source on consumer payment behavior. Insights from the Diary, and other data sources, help the CPO understand the role that cash will play in the future. This research helps the Federal Reserve (Fed) fulfill its objectives of maintaining confidence in U.S. currency and promoting a safe and efficient payment system.
When first conducted in 2012, the Diary showed that cash was the most frequently used payment instrument and that cash use was prevalent across all demographic groups. The key findings of the 2015 Diary of Consumer Payment Choice are similar and suggest that:
The Justice Department has quietly settled a lawsuit seeking millions of dollars from companies the agency had accused of importing counterfeit U.S. coins from China and fooling the U.S. Mint into paying nearly full value for them.
A federal district judge in Philadelphia dismissed the case in a July 21 order that said the parties in the case, America Naha Inc. and Wealthy Max Ltd., had reached an agreement with the agency.
The settlement terms haven’t been disclosed, but lawyers for the companies portrayed the agreement as a victory for their clients, who insisted from the beginning that the coins they imported were genuine.
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