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That's the same thing as negative interest rate, just by a different name. A flat-fee is effectively a negative interest rate that scales lower as balance is hi
by SonicScrub 5y ago
That's the same thing as negative interest rate, just by a different name. A flat-fee is effectively a negative interest rate that scales lower as balance is higher. Calling it a fee or a negative interest rate; that's all just marketing.
- quincunx 5y agoIt's not all marketing for the exact reason you state, it doesn't scale with the balance but is fixed. A flat-fee would be interesting for precisely the account holders with a large balance. There would be a bank-run-exodus of large accounts to such an impossible flat-fee bank.