As announced recently, the European Central Bank (ECB) has decided to double down on its policy regarding negative interest rate. This means that the banks in Europe are liable to pay 0.5% interest for depositing their spare cash. The move has been done to jump-start the economy, which has struggled quite a bit. This decision of the ECB to charge negative interest rate does not exactly bring significant macroeconomic changes, but it does affect people nevertheless.
The policy is quite valid for struggling economies such as Japan and countries in Europe, which have low inflation rate and comparatively weaker growth. The idea has gained some traction in other regions, too.
Its Effect on People
This means that as per ECB, savings is a bad thing and should be penalized. The decision of the ECB to deviate from the inflation target poses grave consequences for everyone. The German citizens have been quite affected by this move, actually. As is the case, they have fully realized that depositing money in the usual bank accounts is a lose-lose deal. The rate of inflation is actually higher than the interest rates, and this gap will widen in the coming years, too. The amount of people looking to invest and save via banks are now decreasing rapidly.
This is also a blessing in disguise for the people and private interests, too. They can look for other viable, easy to use and profitable platforms that offers them the returns the banks simply cannot right now. There are many options like that, thanks to advances in fintech. One such option is Iban Wallet.
How Iban Wallet can help you Save?
With roots in Europe, this vital and disruptive investment platform promises tremendous benefits to its consumers.
The interest accrued is deposit in the investors’ account on a daily basis. The original investment and the associated interest can be withdrawn at any time in one of their most flexible accounts. As a result, your investment is pretty much safe all the time. Apart from the basic account type, there are 3 additional account types in which it is possible to invest depending on his choices and long-term goals. The figure below fully explicates this. Even if the investor wishes to withdraw his funds at an earlier time, he will still get the initial investment all the same.
The website has an iOS and Android application, which makes working with it quite easier. All you need to get started is just to sign up, synchronize your bank account with it and select an account type. This done, you are good to go.
Given that the European economy is really struggling to gain some semblance of stability, it is a prudent way forward for the individuals and other business interests to keep an emergency reserve fund. Iban Wallet will act not just as a savings account of sorts, but also one which accrues profit on a daily basis.
As a result, in a time when banks have become increasingly unreliable and unprofitable, it is advisable to opt for alternative options like Iban Wallet for this purpose. With it, your funds are safe as a house.