Anyone on MINUS % bank rates yet

Dave7

Legendary Member
Location
Cheshire
Just had a letter from the TSB to inform me that I will now earn nil %.
Surely wont be long before it becomes negative %.
At my age and situation its not a great worry but there must be people this does adversely affect.
 

Drago

Flouncing Nobber
Location
Poshshire
Aye, fee paying bank accounts look set the become the norm if this carries on.
 

Faratid

Active Member
Highly unlikely that savings accounts will become negative %.........................but possible, and if they do, my money will be withdrawn and put under the mattress.
If there becomes no alternative to a fee paying bank account, I'll just have to take the view that if I want to use services such as DD, money transfers and so on, I'll have to pay for it. However, I will not pay a bank just to keep my money in, and would withdraw all sums as soon as they come in, and put them under the mattress also.
As usual, it will be the less well off, struggling unemployed/hard working families with no savings, who will be worst hit.
 

Milkfloat

An Peanut
Location
Midlands
I'm keeping a close eye on the savings rates. Still clinging on to 1% for now but at the first signs of a big drop, I'll put it all into Premium Bonds.
Premium bonds have fallen though the floor as well. I don't see any safe products on the market offering much in the way of interest.
 

screenman

Legendary Member
Highly unlikely that savings accounts will become negative %.........................but possible, and if they do, my money will be withdrawn and put under the mattress.
If there becomes no alternative to a fee paying bank account, I'll just have to take the view that if I want to use services such as DD, money transfers and so on, I'll have to pay for it. However, I will not pay a bank just to keep my money in, and would withdraw all sums as soon as they come in, and put them under the mattress also.
As usual, it will be the less well off, struggling unemployed/hard working families with no savings, who will be worst hit.
I would guess those last one's may have debts that will be easier to pay with lower interest rates, some of us can remember 15% mortgages, I would rather pay a small amount than have h good size lump of cash indoors.
 

Notafettler

Senior Member
one bank I can’t remember the name is charging negative Interest rates if you have more than £50,000 in your ordinary account..won't effect me.
From economic point of view negative Interest rates are recessionary and can lead to a depression. People have a tendency to take their money out and put it under the mattress. Which results in banks have less money to lend. As banks are the creators of money you could be looking at reduction in the money supply (monetarism?).
Even with the vast amount of quantitative easing. If inflation becomes a negative people tend to stop buying because prices are falling. I have heard in the last recession someone say I'm holding on to replace my car as car prices are falling.
Put all that together and you have spiraling deflation. The latter will always result in a depression as opposed to recession.
Despite the silly views that the US depression was caused by the stock market crash, it was actually caused by the incompetent (extremely Conservative economic views) of the US government and bankers. Inflation 1930 -10%
1931 -10%
1932 -10%
UK inflation for the year to August CPI+H 0.5% down from 1.1% for the year to July.
CPI 0.2% in August 2020, down from 1.0% in July.
Bank of England going negative is very dodgy. They do agree with me on this!!!!
 

Notafettler

Senior Member
Highly unlikely that savings accounts will become negative %.........................but possible, and if they do, my money will be withdrawn and put under the mattress.
If there becomes no alternative to a fee paying bank account, I'll just have to take the view that if I want to use services such as DD, money transfers and so on, I'll have to pay for it. However, I will not pay a bank just to keep my money in, and would withdraw all sums as soon as they come in, and put them under the mattress also.
As usual, it will be the less well off, struggling unemployed/hard working families with no savings, who will be worst hit.
I just noticed part of my views being expressed above!
 

Mo1959

Legendary Member
I would guess those last one's may have debts that will be easier to pay with lower interest rates, some of us can remember 15% mortgages, I would rather pay a small amount than have h good size lump of cash indoors.
I remember them too......that’s why I get hacked off when people complain about our generation having it so good! We paid hundreds per month and did without lots of things people take for granted now to get by.
 

screenman

Legendary Member
I remember them too......that’s why I get hacked off when people complain about our generation having it so good! We paid hundreds per month and did without lots of things people take for granted now to get by.
That may have been because a lot of things we went without had not yet been invented, but yes I agree it was not all roses that is for sure.
 

welsh dragon

a permanent vacancy now exists
Not yet but it won't be long. As I said on the old duffers thread now, if you have £1000 you will earn 0.10p in twelve months. It won't be long before they drop all rates to nil. Then negative interest rates might happen and you will have to pay the banks money to keep yours in their bank.:wacko:
 

Notafettler

Senior Member
I remember them too......that’s why I get hacked off when people complain about our generation having it so good! We paid hundreds per month and did without lots of things people take for granted now to get by.
Half agree, even with low interest rates house prices have gone up so much that lots of the young can't get on the housing ladder to begin with. A product of population growth in a realively overpopulated country.
Of course 3 million immigrants didn't worsen this!!
 
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