What are negative interest rates?

A negative interest rate is when you get money back from someone instead of giving them money, like getting a treat for doing something simple.

Imagine you have a piggy bank where your friend puts their coins. Usually, they take some coins out to keep the bank going. But with a negative interest rate, you give coins back to your friend instead! It's like your friend is paying you to let them use your piggy bank.

Normally, when you save money in a bank, the bank gives you more money, that’s interest. But with negative interest rates, the bank might take some of your money instead, like taking a cookie from your plate because they're tired.

Sometimes, banks want people to keep their money safe instead of spending it. So they give them coins back, hoping they’ll stay happy and not run off with all their savings. It's like getting a little bonus for being patient, even if you’re giving up some coins!