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Negative savings interest rates

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  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    What? No. I said my savings. Not my general spending money.

    Banks won't survive without savers money. How will they lend out money without any to lend out? They make huge profits from loans amd mortgages, which they won't do if people withdraw all their money.
  • udydudy
    udydudy Posts: 559 Forumite
    Part of the Furniture Combo Breaker
    Rather than that people should simply put their money in government bonds or premium bonds. I do not think ever in history Interest rates on government bonds have gone below 0. Also as it goes closer to 0 you will also make capital gains!!!

    Or maybe invest in gold?? better still Crude [EMAIL="oil@$40"]oil@$40[/EMAIL]..

    surely Oil or Gold is not going negative value. may stay low for a while but then once the speculative positions are unwound would go back to $60+ in the next 6-8 months!!

    Just kidding on the invest in Oil or Government bonds as that is only for knowledgeable investors or you could lose your capital even in government bonds unless it is bought at face value.

    and then tbh I am stuck in ISAs until 2011-2013 but not cribbing as all of it is a 6% and 6.1% interest rate!!!.
    :beer::beer::beer:
  • cheerfulcat
    cheerfulcat Posts: 3,402 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Lokolo wrote: »
    I'd rather put £5,000 under my mattress than having it devalue in amount and in realterms.

    It's going to lose value just as quickly under the mattress...
  • rash.m2k
    rash.m2k Posts: 990 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    With the money the bank charge you, you could buy a decent safe and out your valuables in there.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    It's going to lose value just as quickly under the mattress...

    Not as much as if the bank has a rate of -1%. I'll be saving 1% a year under the matress ;)
  • It can be declining in real terms now :D

    The constant search for tiddly yields amuses me, I much prefer to look after my own money and make a decent return... not suitable for most people but I still can't help but laugh.
  • Lokolo wrote: »
    Not as much as if the bank has a rate of -1%. I'll be saving 1% a year under the matress ;)

    If there were negative interest rates the situation would be odd enough that we can't be sure what else there would be going on... but one option would be to declare your currency invalid after a certain time period thus forcing you to return it to the bank... ;)
  • ChuckCash
    ChuckCash Posts: 65 Forumite
    roddydogs wrote: »
    Who on earth is going to put thousands of pounds under a mattress?

    I wouldn't rule it out. As far as i'm aware my mattress didn't require a huge govermnent bailout last year, although i'm hoping it applies for one during the next goverment giveaway bonanza.

    Unlike the banks, my mattress offers a reasonable level of support.
  • RayWolfe
    RayWolfe Posts: 3,045 Forumite
    1,000 Posts Combo Breaker
    You're an idiot.
    ... and you're a charmer. Wish I could be your friend but you probably have too many already ...
  • You can be my friend :)

    Either way I am right.
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