Dr. Finance knows money. That’s why his latest book is called ‘Know Money’.

Green Bank, NJ – Dr. Finance is back by popular demand to answer another money question from one of our smarter readers.

Ms. Evette Ragsdale from Square Butte, Montana asks: Dear Dr. Finance, On a local radio talk-show, a financial expert mentioned the term “Negative Interest”. Could you please explain what this means? Thanks, Evette

Dr. Finance: Thank you, Evette, for that interesting question.

1. The term “Negative Interest” was first coined when scientists in the lab noticed that positive ions were only interested in attracting negative ions to be their life-long spousemates.

2. Later, movie-maker Woody Allen made the term a household phrase in one of his earlier movies when he was not invited up to a woman’s apartment at the end of their first date, because she had “Negative Interest” in pursuing a relationship with him because of his quirkiness.

3. More recently however, that same phrase is being applied by large banks which used to happily help a youngster open a savings account with the coins in their piggy bank. Since it’s usually such a small amount of money, the banks have “Negative Interest” in helping smaller investors because they would rather spend their time helping rich people like Rachel Maddow, who makes seven million dollars a year.

If you have a money question for Dr. Finance, please mail it in a green envelope along with at least $100 cash (for shipping and handling) to the FM Observer, attention Dr. Finance.