Interest on Bank Accounts

[Argo]

Why don't we earn interest on our accounts in Avonmora's Banks ?

[Stan Rogers]

It's trying to emulate real life ?

[Shadowood]

It’s a decent idea. But where is the money coming from?

Pirates Glory Stock Market, Bonds to build a Fort in Tortuga, more taxes??

[William Pitt]

It’s a decent idea. But where is the money coming from??

Nation treasury perhaps?

All active accounts, no withdrawals in the last Xdays, gain X%.
Or all active accounts with at least X amount, gain X% every X weeks, deposits in the last Xdays are not counted.
(Half Time Split? gain 10% every 5 weeks; 20 % every 10 weeks?)

Interest could be 0-20%. Higher the interest the more time the account has to remain untouched....

Bank owner nation pays interest or the account holder's nation.


What are your thoughts?

[PFH]

Stock investment for plantations. You buy stock shares of plantations, depending on how much the plantation has improved, will increase the value of stocks of said plantation.

That’s a place where this could come from perhaps.

Or even from the bank owner personal storage itself as an incentive for getting more loans or something

[The Lamb]

I always thought the "interests" earned from banks was a safe place to store your swag without having to stick it in the sand or leave it on you to be taken.

[Zephore]

I always thought the "interests" earned from banks was a safe place to store your swag without having to stick it in the sand or leave it on you to be taken.

Don't worry, if you pay me I'll happily throw my swag in your bank Lol

[DezNutz]

It’s a decent idea. But where is the money coming from??

Nation treasury perhaps?

All active accounts, no withdrawals in the last Xdays, gain X%.
Or all active accounts with at least X amount, gain X% every X weeks, deposits in the last Xdays are not counted.
(Half Time Split? gain 10% every 5 weeks; 20 % every 10 weeks?)

Interest could be 0-20%. Higher the interest the more time the account has to remain untouched....

Bank owner nation pays interest or the account holder's nation.


What are your thoughts?

So what about bankers who don't belong to port holding nations?

[Haron]

Letting bankers give their costumers an interest rate would probably be relatively easy. Let them set a rate between, say, 0% and 20%. However, WHY would bankers give their costumers interest? For bankers to be willing to do that, they must profit from people placing money in their banks. And as it is, that is not very profitable. Sure, they can lend out money, but that is seldom huge amounts. Hardly ever more than the bankers have in private funds anyway, so they could manage those loans without anyone putting money in their banks.

Bankers could invest the money in risky enterprises, I assume, at least theoretically. With a significant chance of failure, meaning that banks could go bankrupt.

But we would need some way bankers can utilize the gold other players put in their banks. And we would need a way to handle banks going bankrupt. I fear that the population of Avonmora may be too small. There are simply too few costumers per bank. Also, if there are ways to earn gold by investing it - why wouldn't I invest that gold myself, rather than put it in a bank?

I think that as of now, it is hard for bankers to profit from other players placing gold in their banks, and thus, there is no incentive for them to give interests either.

[Most Lee Harmless]

Since Day #1 of banks there has been but one reason to build one : to keep your own swag safe.

Yep, you can store other players coin but you can not use it without risk of defaulting should they seek to withdraw it.

You can loan it out but face the same problem : it is never the players funds at risk : it is your risk as you have to keep your coin on hand to refund depositors.

So, if banks are now going to pay interest on funds which they actually find little benefit in holding : why spend 100 credits and tens of K's of gold bars to make more space to store coin that you then have to pay to hold? Huhuh.

Avonmora Banks are not real world institutions, they function nothing like them as we have nothing even close to a real world economy.

The day interest gets charged is the day banks starting kicking their depositors out. No effing use to me so why pay to keep them?