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Negative savings interest rates
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obsessed_saver
Posts: 511 Forumite

If the Bank of England cuts interest rates on Thursday could the interest paid on our savings fall below zero?
http://news.bbc.co.uk/1/hi/programmes/moneybox/7809530.stm
http://news.bbc.co.uk/1/hi/programmes/moneybox/7809530.stm
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Comments
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No. How could they fall below 0? That would mean we would have to pay to keep our savings in the bank.
What is with these threads of stupidity lately?0 -
In fairness to the OP, quote from article states:
"
If the Bank of England cuts interest rates on Thursday could the interest paid on our savings fall below zero? Negative interest rates, where the bank charges us to look after our savings, have been seen before. "butterfly )i(0 -
No.
Banks charged us for having accounts and banking with them. They don't charge us for having savings or charged interest on them.0 -
From the BBCA negative rate of -1% would mean that someone depositing £10,000 would get back just £9,900 at the end of the year, effectively paying the bank £100 for the privilege of holding their money for them.
Even if the BOE rate reaches 0% there will still be savings accounts available that pay positive interest rates, only banks that have plenty of cash and are happy to lose customers would offer Zero or negative rates.0 -
yes, loads of people, if you include "goes down in real terms"
Have you seen inflation lately? Its 4.1%.... nowhere near 0% or negative. Long way off that I should think, way after savings rates going down to 0% or less.
But even if inflation went down or whatever, it would still be more beneficial to take the money out and keep it at home where its at 0% rather than negative%0 -
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I suppose it depends what the negative rate was. If it was -0.1% for example, I think I'd still keep it in the account just so I know it's safe. Fire, theft etc.“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0
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I suppose it depends what the negative rate was. If it was -0.1% for example, I think I'd still keep it in the account just so I know it's safe. Fire, theft etc.
It's a grim prospect but I have to agree. I really don't think I'd be happy having a five figure sum of cash lying around. I get a bit twitchy when there's more than £100 cash in our tin!0
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