I'm wondering as to weather there will be interest implemented in to banks. As the amount put out on loans is very high then the banks have got to be earning plenty from them.
Another option I came up with may be to have exact values per month instead of percentages, for example, instead of getting 2 percent interest, the bank just gives a flat amount of gold to everyone.
So for example if Mr K had 10 million and Mr X had 500k

Bank A offers 1.2% interest and Bank B offers a flat 50k gold

Therefore Mr K would earn 120k from Bank A and 50k from bank B
Whereas Mr X would earn 6k from bank A and 50k from bank B

Obviously you would nee a certain amount in the bank to define weather you are eligible to get the 50k from Bank B, that would most probably be defined by the bank owner

For those who don't understand what interest is, it works by you having money in the bank and the bank giving you a little bit extra money for free because you use their bank. Obviously it is variable from bank to banks as owners decide the amount they want to give you.

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Personally, the payback is a safe haven for my cash. So that miscreants such as Francois don't get my hard earned $$$$$.

Pimpernel wrote:Personally, the payback is a safe haven for my cash. So that miscreants such as Francois don't get my hard earned $$$$$.

Those accounts can get freeze arrr

All the more reason to know your banker well. And pirates...well...seize all their bank assets and let em hang!

lets just stay on topic people

I am. I don't think interest is necessary. Know your banker and the reward is safe storage of your cash. Just my humble opinion. -1

As a bank owner and lender : I have never used a single coin of customer deposit to make a loan, I'd happily hazard a guess that few other wise bankers have done so either : that's because we need to keep all the coin there in case you all decide to withdraw it one day. Looking back over the past month or so, I've seen massive fluctuations in deposits held from day-to-day, so that's the wisest policy. Actually, we are making a full 100% of zero from customer deposits : In the meantime, it's my coin being risked on loans (cos guess what, they dont all get paid back) ; your coin just sits there, earns me nothing and wouldn't earn me any different if it was twice as much or none at all.

Now, if we knew the deposit was going to be locked in for say 120days, then yep, we could then pay interest on the deposit because we would know that it could be loaned out in the interim. But as for paying interest on 'current account' deposits we cant prudently use, guess what, my bank aint a charity ; take your coin elsewhere to a bank that will risk using it for loans and risk them not having it there when you want it back. But if what you want is a safe haven and knowing it there when you need it : we are here to serve and we wont even charge you for that service.

I am in the same position as Danik. I do not dare use one piece of my depositors gold for loans. Your deposits at our banks are completely at your disposal and are available at your whim and they are used as you wish. It is not uncommon for someone to deposit 5 million and withdraw it within 2 days. How can we possibly use your gold for making loans? We don't know that it will be there in a day, let alone for a month. This means that all loans have to be made out of our personal funds.

When you consider the expense involved in opening and leveling up a bank, then the fact that the gold we loan out is ours and not the investors, I don't see these banks ever creating an actual profit. We have them open as a means of helping others and making the game more interesting.

I love hearing people saying what the banks should do. I have even had players tell me I should be making 20 million gold loans at 2 1/2 % interest. May I suggest that you open your own bank and be just as generous as you wish. I have a feeling you will not be as generous with your own gold as Danik and I are with ours.

Now, if you were willing to commit your gold to us for a period of 90 days I might reconsider my position.

Kart
First Bermuda Savings and Loan