Further to TAFKAS’ earlier post this morning, here is an interesting story:
No. That’s not a typo:
Jyske Bank, Denmark’s third-largest bank, said this week that customers would now be able to take out a 10-year fixed-rate mortgage with an interest rate of -0.5%.
To put the -0.5% rate in simple terms: If you bought a house for $US1 million and paid off your mortgage in full in 10 years, you would pay the bank back only $US995,000.
Slap on (perhaps) a 2.5% bank margin meaning that Jyske Bank is getting its funds at perhaps -3%.
No saver in their right mind would deposit funds in a bank for -3%; they would rather keep their money under their bed. One can only imagine from where Jyske Bank is sourcing its funds from.