Savers facing accounts with no interest

Options
Andrew64
Andrew64 Posts: 425 Forumite
in Savings & investments
This is the title of an article in today's Daily Telegraph. If it does happen that Banks stop paying interest, or near to that, what would be the best place for our money? I want somewhere that is generally safe and gives some return.

http://www.telegraph.co.uk/finance/personalfinance/savings/4077360/Savers-facing-accounts-with-no-interest.html

Imagine this!:

"A cut in interest rates raises the bizarre possibility that some savers may soon end up having to pay banks to keep money with them."
«134

Comments

  • Lokolo
    Lokolo Posts: 20,861 Forumite
    First Post First Anniversary
    Options
    Not going to happen.

    If banks change to 0% people take their money out of the banks then the banks have nothing to lend out so no profit.
  • jon3001
    jon3001 Posts: 890 Forumite
    Options
    Lokolo wrote: »
    If banks change to 0% people take their money out of the banks then the banks have nothing to lend out so no profit.

    Since the bail-outs, they are borrowing money off the taxpayer to lend back to them. ;)
  • pink_princess
    pink_princess Posts: 13,581 Forumite
    Options
    We ve had our rate cut by citi bank.Its not fair ,we are paying for the credit crunch.
    Life is short, smile while you still have teeth :D
  • spendaholic
    spendaholic Posts: 1,535 Forumite
    Debt-free and Proud! Name Dropper First Anniversary First Post
    Options
    What a shame they don't cut the interest to 0% on overdrawn accounts too ...
    spendy/she/her ***DEBT-FREE DATE: 11 NOVEMBER 2022!*** Highest debt: £35k (2006) MY WINS: £3,541 CASH; £149 Specsavers voucher; free eye test; goody bag from Scottish Book Trust; tickets to Grand Designs Live; 2-year access to Feel Amazing App (worth £100); Home Improvement & Renovation Show tickets; £50 to spend on chocolate; Harlem Globetrotters tickets; Jesus Christ Superstar tickets + 2 t-shirts; Guardians of the Galaxy goody bag; Birmingham City v Barnsley FC tickets; Marillion tickets; Dancing on Ice tickets; Barnsley FC v Millwall tickets
  • DawnW
    DawnW Posts: 7,440 Forumite
    Name Dropper Photogenic First Post First Anniversary
    Options
    It makes more sense than ever to use savings to pay off debts and mortgage, although still keeping an 'emergency fund' in a cash ISA. Some of the regular saving accounts still offer a decent rate though
  • Milarky
    Milarky Posts: 6,355 Forumite
    Photogenic First Post First Anniversary
    Options
    It's spin. Interest rates for savers will never go to 0% - let alone negative. Banks aren't quite as stupid as the government. Even Nationwide (which has delighted at cutting savings rates by 0.5%, 1.5% and 1% the last three months) now feels oblige to spin the other way - and claim that they can't squeeze savers any further.

    Look at ING - offering 5% variable for a year to new customers. That's base rate '+3%' in effect.
    .....under construction.... COVID is a [discontinued] scam
  • Bernie
    Bernie Posts: 412 Forumite
    Options
    DawnW wrote: »
    It makes more sense than ever to use savings to pay off debts and mortgage, although still keeping an 'emergency fund' in a cash ISA. Some of the regular saving accounts still offer a decent rate though

    ...I agree with Dawn, you gotta get as much cash behind the tax-free wrapper of an ISA as you can. Even if the rate paid dies, the wife and I will still push cash into our ISA.

    There's a tax bill tsunami brewing for the future and there's only one place Grasping Gordon (or his successor) can get the money - from us! Hopefully ISAs will survive the tax onslaught that is to come.

    :beer:
    “When I was a boy of fourteen, my father was so ignorant I could hardly stand to have the old man around.

    But when I got to be twenty one, I was astonished at how much he had learned in seven years.”

    Mark Twain
  • RayWolfe
    RayWolfe Posts: 3,045 Forumite
    Combo Breaker First Post
    Options
    Without reading the Torygraph report, it does seem like another ridiculous scare story!
    It won't happen. Rates will get low bet you will never have to pay to have a savings account. Two seconds thought will tell you why.
  • equitydealer
    equitydealer Posts: 327 Forumite
    First Post First Anniversary Combo Breaker
    Options
    One thing which 2008 has taught bankers is they need a decent level of deposits and not to rely too much on the wholesale market. If they pay 0% interest depositors will move elsewhere. There will always be someone paying a higher level of interest.
  • Lynt_3
    Lynt_3 Posts: 235 Forumite
    Options
    Just been watching guy from Moneybox (R4) on BBC news. He says that lending between banks is much cheaper now, and so they don't need our money.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards