Do Negative Interest Rates Decrease the Status Quo Bias on Saving?

Using an online experiment, I study the impact of negative interest rates (NIRs hereafter) and positive interest rates (PIRs hereafter) and procedures and costs on status quo bias on savings. Status quo bias refers to the enhanced probability of choosing one option when framed as the status quo, which is often suboptimal. The results of this experiment indicate that the status quo bias is lower when the status quo option delivers loss (i.e., NIRs) than when the same option delivers gain (i.e., PIRs). This status quo bias increases when one must go through procedures and pay costs to switch from the status quo alternative. The overall effect on status quo bias is strong if an individual is a saver and has to go through procedures and pay costs if he/she desires to switch from the current bank to another bank. Finally, I find that at least low levels of financial literacy decrease the status quo bias