> the bank will pay a reasonable interest to cover inflation and give you some extra.
> all investment vehicles. 0% interest means that any investment with yield will carry risk.
A consumer can offload all of the risk to the bank (and the underlying guarantee, usually state), in return for most of the reward. Example: I can open a savings account with some restrictions (minimum balance, or restricted withdrawals) and since the bank is now in a better position to invest my money, they can offer me an interest rate despite central rates being 0%.
For example, a $50 minimum balance but free withdrawals gives me 0.6% interest rate, with state deposit insurance. That's not "risk free" since there are other risks than that the of the bank (currency risk, not least) but it's the exact same risk as any savings account.
> A consumer can offload all of the risk to the bank
There is a pattern/trend, and the banks started with a certain amount and now lowered it. If the trend carries on, it's a matter of time before what you suggest is no longer possible.
A consumer can offload all of the risk to the bank (and the underlying guarantee, usually state), in return for most of the reward. Example: I can open a savings account with some restrictions (minimum balance, or restricted withdrawals) and since the bank is now in a better position to invest my money, they can offer me an interest rate despite central rates being 0%.
For example, a $50 minimum balance but free withdrawals gives me 0.6% interest rate, with state deposit insurance. That's not "risk free" since there are other risks than that the of the bank (currency risk, not least) but it's the exact same risk as any savings account.