Bank Interest Paid In Ice Creams & Candies
The Whalebone Café Bank in Pittsburg has been attracting the attention of economists and Bankers in the region for some time now. The reason- It is a grudge bank initiated by Ethan Clay the owner of ‘Oh Yeah! Ice Cream and Coffee Company’ when he was charged a huge amount as overdraft by a regular bank.
This unique ice cream shop cum bank is offering its customers an attractive rate of interest too. The depositors are set to gain 5.5% on their savings. But wait a min, here comes the catch! The interest is not shelled out in hard cash. On the contrary, the customer gets a gift card which he can redeem by purchasing waffles, candies or coffee at the store. A double whammy isn’t it?
Clay, however, claims to have $660 worth of deposits already. His banking system is not insured by the ‘Federal Deposit Insurance Corporation’ which makes it a tricky situation for his customers. How are they to recover their money if the community bank fails suddenly. Clay’s answer to that- "You do have to trust my process; there is an element of that."
Ethan remains commited to his cause and is trying to change the financial system of his country single handedly for now. Whether his ice cream shop bank turns out to be a model bank remains to be seen. The economists are unsure of its success though and say that it will be fraught with challenges.
Image Credit- wsj; newsfeed.time