Is interest free banking viable for US if not why.?

Question

BILLIONS OF PEOPLE WILL BENEFIT AND WIPE OUT THE DEFECIT IN COUNTRIES BUDGET.

Answer 1

Heck, I thought we already had interest free banking. I have not received any interest on any of my bank accounts in several years. Every month when they send me my statement they report that the current interest rate is 0.3% and credit me with about 3 cents in interest which in effect is interest free.

Answer 2

Ah, there has to be something missing to the normal American (which is what is needed to make it "viable"). Our population is only some 300 million, so what is going to happen here that will translate to the benefit of "billions of people" needs to be explained. Additionally, what is the connection to 'wiping out the deficit' and removing interest?

Commonly, when we put the words interest and banking together we are often talking about the bank paying interest to us, the people banking with them. The interest for loans is commonly discussed in the context of the loan because many of those who lend money are not bankers. In some other countries, Israel and Switzerland at times would be examples, you could put money on deposit, but they charged you some of that money in order to keep it safe and available for you. The American banking system used to do that too, but a long time ago.

Perhaps banking is different where you live, but if you live in the US, either you explained yourself poorly (a common thing on Yahoo Answers) or you need to visit a few more banks because you are getting robbed.

Answer 3

I believe this is a misinterpretation of the Khoran. It says you can charge the 'usuary' which the interpreters take as profit and not interest. So they lend money and take a portion of the profit instead of interest which is one and the same. If 'usuary' was interpreted as interest then they would have charged interest instead of profit. Most of the Businesses in the Arab world the Bank finances are paid back with a protion of the profit. Literally it is one and the same different interpretation. Then your arguement if Americans loan interest free money then Budget deficit will evaporate is not well founded or correct. Arabs infact make more money charging profits I believe rather than charging interest. Their methods can create inflation you see, where as a managed interest rate you can control inflationary pressures. I hope you understood how it works.