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We are all familiar with the concept of “time value of money” and interest paid on bank deposits. But negative rate of interest, i.e., I have to pay you to lend you money, is unheard of. However, sometimes this is true. The Swiss Franc is world famous for its stability and safety. But what is less touted is the secrecy of Swiss banking law. Illegal or corrupt officials often find Swiss bank account a good place to hide money. Apparently the demand for depositing money into Swiss bank account has grown so much recently that there exist strong pressure to upgrade the Swiss exchange rate which is bad for Swiss export and other economic considerations. As a result it was announced today that henceforth depositors have to paid an interest of 0.25% TO THE BANK in order to deposit money into a Swiss bank account. This is negative rate ofinterest!
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