Negative interest rate discussed

stinktankcynic

You can currently get 2% interest on an isa, that's better than nothing at all. If interest rates go zero, then its pointless holding money in a savings account.
Everyone then might as well pull all their cash out and either go stocks, assets, gold etc, or move abroad where rates are higher. If interest rates are zero or negative, then in theory pensions will be worthless as annuities won't pay out anything, and returns will be low. Are these idiots trying to destroy the UK? Or destroy normal working classes' whilst supporting the rich and have nots?

adonis

dburford9 wrote: »

How likely is this? Is this not a very random idea that has been plucked out of the air, or is this actually likely to happen?

I have savings but unfortunately I have no solid working career, I am always in and out of work.

I have been sensible with my money.....

I cannot claim Jobseekers or Housing benefit as I have too much savings. Therefore the £50 I get a month in interest is fairly essential for me.

Having no interest rate or even having to pay to have savings would be another shot to the throat.

Having savings especially in my case is a bad thing!!!!!!

It's bloody ridiculous.

You and me both, fortunately I have paid off the mortgage so that helps but all I get is letters saying my isa rates have been cut and with the utility bills going up and without a permanent job the savings are going down even faster,:(

stinktankcynic

It looks like it's going back to the 19th century again. Lord of the manor, serfs, except this time, the workers are shafted, it will only be the idle or those with children who will be housed, fed and clothed for doing nothing. And of course, the rich, lords, business leaders who will be like gods.

System

They really have ballsed it up for my generation.

The rest of my life is going to be a struggle.

Nothing will improve for decades. If anything things are getting worse and worse. Downgrading of our AAA rating. Potentially scrapping interest. More and more high street shops disappearing, more people being made redundant, Bills going up, petrol going up, Italy in a mess........

Nothing is getting better. How bad are things going to get.

markwilkinson

stinktankcynic wrote: »

It looks like it's going back to the 19th century again. Lord of the manor, serfs, except this time, the workers are shafted, it will only be the idle or those with children who will be housed, fed and clothed for doing nothing. And of course, the rich, lords, business leaders who will be like gods.

The interesting part is working out your own strategy to beat it.

grey_gym_sock

stinktankcynic wrote: »

It looks like it's going back to the 19th century again. Lord of the manor, serfs, except this time, the workers are shafted, it will only be the idle or those with children who will be housed, fed and clothed for doing nothing. And of course, the rich, lords, business leaders who will be like gods.

this is kind of in the wrong thread. negative real interest rates are squeezing a few ppl, but a lot more are being squeezed by sub-inflation pay rises, and by public spending cuts which have their biggest effect on the poor (both working and non-working).

most ppl never made much money from interest, so the negative real rates should only be an irritation for them. and rates were rarely much higher than inflation, so the change in real rates is not that great.

it's incorrect to suggest that the non-working poor are immune from the squeeze. of course, they're much better off than the poorest in the 19th century, but then so are all levels of society, compared to their nearest 19th century counterparts.

worldwheeler

stinktankcynic wrote: »

. Are these idiots trying to destroy the UK? Or destroy normal working classes' whilst supporting the rich and have nots?

On the evidence this is precisely what is happening. So, either the actions are being proposed and implemented by idiots(if so why are they in positions of power and influence) OR it is by design. Wealth transfer from the vast majority to a handful of owners at the very very top.
The UK, along with many western countries, is being hollowed out from within.
Libor rigging.... no crime.... mortgage mis-selling ....no crime
PPI mis-selling.... no crime. Oh but let's call them scandal, inappropriate behaviour.

the return of feudalism.

6022tivo

Premium Bonds will be interesting..

Maybe the draw will be for penalty amounts to your bond total..

In which case I would not want to win a negative -£25 each month!

typistretired

Tax man won't like it as we will all be putting negative savings interest on our tax returns

Pinkypants

The banks are still leading to us at 4 or 5% for mortgages up to 40 odd % for some stupid credit cards. Yet they borrow at only 0.5%, they are laughing all the way to the bank!