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  #21  
Old 02.02.2015, 12:51
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Re: SNB introduces negative interest to weaken the franc

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It's news like this that could lead to a run on the banks.

It's a good time to become a burglar.
ive resisted chucking any savings back into sterling for now as I'd like to keep it in CH for simplicities sake. however if they start to charge to keep it, then back off to blighty it will go.
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  #22  
Old 02.02.2015, 13:31
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Re: SNB introduces negative interest to weaken the franc

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...To avoid negative interest rates/ deposit fees, it might be wise to withdraw savings from bank accounts and place in a safety deposit box until the negative interest rates are removed.
So far they keep emphasising that this won´t affect private customers. Do you have any hint as to why it might be wise to already withdraw everything now?

One thing I definitely fear is that the fee for my safe-deposit-box in the bank will increase. So far I´m not keeping cash there, but things might change.

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ive resisted chucking any savings back into sterling for now as I'd like to keep it in CH for simplicities sake. however if they start to charge to keep it, then back off to blighty it will go.
Actually, if many people think like this the rate of the CHF will go down again. Maybe it is time to change into other currencies now?
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  #23  
Old 02.02.2015, 17:37
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Re: SNB introduces negative interest to weaken the franc

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It's news like this that could lead to a run on the banks.

It's a good time to become a burglar.
Their goal is actually to make you look for a yield elsewhere and specifically the stock market.
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  #24  
Old 02.02.2015, 17:43
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Re: SNB introduces negative interest to weaken the franc

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Their goal is actually to make you look for a yield elsewhere and specifically the stock market.
Less risk under my matress.
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  #25  
Old 02.02.2015, 19:31
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Re: SNB introduces negative interest to weaken the franc

Normally, PostFinance won't charge any fees if you have an average balance of 25K for their premier tier of bank account package. So with the negative interest in mind, I wonder if they will waive the rule of keeping 25K and give you free banking if you had zero balance???

Interact Brokers have started to charge negative interest for any CHF balances over 100K. This won't affect me but if I had that much cash I may think of buying gold bars, melt it into drainage pipe and install it into my cellar.
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  #26  
Old 02.02.2015, 19:45
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Re: SNB introduces negative interest to weaken the franc

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Less risk under my matress.
One just needs to be careful who one shares one's mattress with
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  #27  
Old 02.02.2015, 20:48
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Re: SNB introduces negative interest to weaken the franc

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ive resisted chucking any savings back into sterling for now as I'd like to keep it in CH for simplicities sake. however if they start to charge to keep it, then back off to blighty it will go.
Long term the CHF gains (used to gain?) at least 2% p.a. against just about any other currency. The only exception I'm aware of is JPY, which lost around 1%.
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  #28  
Old 02.02.2015, 20:55
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Re: SNB introduces negative interest to weaken the franc

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Less risk under my matress.
When are you (not) at home?
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  #29  
Old 02.02.2015, 21:12
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Re: SNB introduces negative interest to weaken the franc

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Actually, if many people think like this the rate of the CHF will go down again. Maybe it is time to change into other currencies now?
Down?

It's only gone up since WW2, what are you on about?

Tom
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  #30  
Old 02.02.2015, 21:42
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Re: SNB introduces negative interest to weaken the franc

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Down?

It's only gone up since WW2, what are you on about?

Tom
As all other currencies, it fluctuates.

In the long run, I´m sure it will continue to rise. However, in the (very) short run I´m pretty sure it´ll lose. After all it already hit .84CHF/EUR - it´s down a far cry from this extreme right now.
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  #31  
Old 03.02.2015, 00:49
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Re: SNB introduces negative interest to weaken the franc

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As all other currencies, it fluctuates.

In the long run, I´m sure it will continue to rise. However, in the (very) short run I´m pretty sure it´ll lose. After all it already hit .84CHF/EUR - it´s down a far cry from this extreme right now.
The Euro was below .90 for about 5 minutes, during a phase of extreme turmoil. So yeah, that has extreme and very reliable significance

Oh and btw:
Since that extreme the CHF is UP, not down. That alone shows your level of proficiency
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  #32  
Old 03.02.2015, 01:20
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Re: SNB introduces negative interest to weaken the franc

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...That alone shows your level of proficiency
I´m not proficient nor claiming to be.

Just because the chart shows the line going up or down, which depends on if you look at EUR/CHF or CHF/EUR, I always assumed that "up" and "down" is used exclusively for "gaining" or "losing" value against whatever base value you compare anything to.

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...Since that extreme the CHF is UP...
Since that extreme (of .84 Rappen per EUR) the CHF is down (=lost value), because now you have to pay 1.05 CHF per Euro.

However, your "up" and "down" terminology is consistent, so I admit I might be wrong: In my books the CHF went up (=gained value) on the 15th of January (comparing morning opening vs. evening close; excluding the spikes), while >>you claim<< that the
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...CHF is down by about 15%...
As I said, I´m not proficient, happy to learn and admit I might be wrong - no need to become agressive though?

But one thing where you´re definitely wrong: You called "whatever the SNB did" a >>peg<< (last sentence of yours), but it >>simply wasn´t one<<. Does this disqualify you as "not proficient"? I don´t dare to judge.

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  #33  
Old 03.02.2015, 04:04
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Re: SNB introduces negative interest to weaken the franc

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Down?

It's only gone up since WW2, what are you on about?

Tom
It's "only" gone up over the last 70 years? Really? What about the last two weeks?

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Since that extreme the CHF is UP, not down. That alone shows your level of proficiency
Fail. Two weeks ago it (briefly) took less than CHF 0.90 to buy EUR 1.00 (and even a week ago, less than CHF 1.00 was required). Today, you need about CHF 1.05 to buy the same EUR 1.00. If that's your idea of the CHF going "UP" in value against the EUR, I have a great deal exclusively for you.
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  #34  
Old 03.02.2015, 04:43
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Re: SNB introduces negative interest to weaken the franc

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An article in today's NZZ raises the question of how long small accounts will be protected from negative interest rates. Specifically, the article mentioned the PostFinance policy statement made on Friday, posted on its website postfinance.ch under "PostFinance reacts to SNB's negative interest rates":

"PostFinance is also taking the additional step of defining individual customer thresholds for major customers and banks. The proportion of credit that exceeds the threshold will be subject to a fee, currently 1%, from 1 February 2015. The measures introduced by PostFinance are specifically aimed at major customers and banks that transfer assets with no relation to payment transactions to PostFinance. In light of the current circumstances, private customers and most business customers will not have to pay a deposit fee. If the market situation changes significantly, PostFinance reserves the right to implement further measures."

According to the NZZ article, the banks are in an untenable position in that if they pass on the negative interest to the customers then the customers will withdraw their savings into cash. Otherwise, the banks will have to accept losses from the deposit business.

http://www.nzz.ch/finanzen/strukturi...ont-1.18473618

To avoid negative interest rates/ deposit fees, it might be wise to withdraw savings from bank accounts and place in a safety deposit box until the negative interest rates are removed.

it is the market. The market apparently is such that People are ready to pay for having their Money placed in Switzerland securily


the negative interest rates will get dropped as soon as the markets drop their demand to get CHF
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  #35  
Old 03.02.2015, 12:23
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Re: SNB introduces negative interest to weaken the franc

Why do so many threads on EF end in a slanging match?

I think the answer must be that "when in Rome". I think its a very Swiss thing to point out someone elses failings in a superior manner.
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  #36  
Old 06.02.2015, 10:41
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Re: SNB introduces negative interest to weaken the franc

Bank Safra Sarasin announced and began charging negative interest of 0.75% yesterday on ALL customer deposit accounts, according to InsideParadeplatz:

http://insideparadeplatz.ch/2015/02/...r-kleinkunden/

This is the only bank in Switzerland to-date to charge all of its depository account holders for keeping money with the bank. To avoid the possibility to be charged this fee, it might be advisable to withdraw funds from your bank and place the cash in a safety deposit box.
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  #37  
Old 06.02.2015, 10:47
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Re: SNB introduces negative interest to weaken the franc

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It's "only" gone up over the last 70 years? Really? What about the last two weeks?
Long term trend. A few cents noise is just noise.

Unless it goes back down to 1.2:1 and stays there, which it won't, it's UP.

Tom
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  #38  
Old 06.02.2015, 11:20
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Re: SNB introduces negative interest to weaken the franc

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Why do so many threads on EF end in a slanging match?

I think the answer must be that "when in Rome". I think its a very human thing to point out someone elses failings in a superior manner.

ftfy
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  #39  
Old 06.02.2015, 11:40
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Re: SNB introduces negative interest to weaken the franc

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ftfy
ftfy?....Oh and thank you for correcting my spelling of Swiss.

Come to think of it.........The Swiss are probably more human than other humans.
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  #40  
Old 20.04.2015, 11:31
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Re: SNB introduces negative interest to weaken the franc

I believe these negative interest rates are actually a 'punishment' for savers.. bonds and interest rate swaps are in negative zone for 10 year period...

given the current situation, do you think that a return of 1% p.a. on CHF deposits after tax for the next 5 years, makes a good deal??
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