Owen Raszkiewicz

Let's just start with the answer.

How would it affect?

Would it be safe to take your money out of the bank?

I wouldn't take my money out of the bank.

No.

Because at the end of the day, society can't function without banks.

So there's no way that the government would let them go under.

And I imagine the deposit guarantee, which currently is in place for some of the banks that are registered...

which you can check online, it's not going to change because people still want that surety.

What you'll find is that interest rates, if they're not already at zero for your term deposit or savings account, they'll probably go pretty close to it.

I don't know exactly if they'll go actually negative as a term deposit because it's funny because even though I just said that the government provides that guarantee to the banks, there technically is risk involved with a term deposit.

So it shouldn't really go below zero, but it could.

So, two things here, two things I want to point out in regards to how it could affect the economy and the financial institutions.

Firstly, if you look at Europe, Europe's had negative interest rates.

There's been some really interesting things going on over there over the past 10 to 20 years with the whole European block, but they're okay.

you know of course we had that austerity and some weird geopolitical tensions in the early 2010s um if you remember you know greece was in kind of a world of hurt so i think it was called was it the the pigs portugal portugal ireland greece and spain um these nations really uh fell fell in tough times so um you know they've came through and they're all right

So I wouldn't be super worried about it.

Of course, it's going to change things.

Your mortgage rate will come down and all that sort of stuff.

But I don't think it changes the simple important fact about life and money in general is that you have to take risk to get a return.