Negative savings interest rates

Dooooooooooooooonut

The chances of a heatwave or lottery tomorrow are much, much less than the chances of negative interest rates.

If you were to force me to come up with a figure... say, what is the probability of negative interest rates in the UK in 2009, I'd probably say something around the magnitude of 2%.

That isn't something you can write off entirely, at least not if you have any sense.

RayWolfe

Oh a tax on savings now. Your comment is about as useful as the ridiculous headline that confused the OP.

Lokolo

Dooooooooooooooonut wrote: »

The chances of a heatwave or lottery tomorrow are much, much less than the chances of negative interest rates.

If you were to force me to come up with a figure... say, what is the probability of negative interest rates in the UK in 2009, I'd probably say something around the magnitude of 2%.

That isn't something you can write off entirely, at least not if you have any sense.

LOL I'd put my savings on that negative rates won't happen.

Read what I said earlier... if rates were going to go netgative or tax was going to be put on it, people will take the money out of the accounts and keep it hidden, no tax, no negative rates. My £5,000 is below inflation already but I am only 1/2% below, if rates were to go down another 5%, so negative, I would be better off putting it under my matress having 0% interest applied than 20% tax or -1% interest rate.

Once again, the only reason people would keep the money in the bank is for safety.... and well, we all know that people don't care about that with the mad rush's at NR for people withdrawing their money.

Dooooooooooooooonut

RayWolfe wrote: »

Oh a tax on savings now. Your comment is about as useful as the ridiculous headline that confused the OP.

You're an idiot.

Dooooooooooooooonut

Lokolo wrote: »

LOL I'd put my savings on that negative rates won't happen.

Well yeah, you wouldn't have much choice

Lokolo

Dooooooooooooooonut wrote: »

You're an idiot.

LOL he is?! *sigh*

Dooooooooooooooonut

I'll be charitable. He doesn't understand probability

roddydogs

Who on earth is going to put thousands of pounds under a mattress?

Lokolo

roddydogs wrote: »

Who on earth is going to put thousands of pounds under a mattress?

I'd rather put £5,000 under my mattress than having it devalue in amount and in realterms.

nicko33

Lokolo wrote: »

Banks would just die off.

Savings aren't everything.
Transactions through current/business accounts would keep them alive.

Are you going to start using cash to pay for everything?
Physically go to a counter to pay your credit card bills with cash?
We'll still want those credit cards and/or debit cards.