Cashless society

skcollobcat10

question answered

Ballard

Cash is expensive for banks to handle so they'd probably be happier without it but I don't see what negative interest rates has got to do with it. You'd still have money in your account and that would attract negative interest.

Anthorn

Personally, I've been cashless and also chequeless for a few years. The only thing keeping me using it is the council run car park which insists on cash.

But even though we may be cashless and use plastic instead what we spend is still denominated in currency and our bank balance is denominated in currency too.

elsien

I'm definitely not cashless. I find it far easier with real money to keep track of my spending and what I've got left. I'm not going to be doing all of my spending on cards or apps any time soon.

zagfles

Ballard wrote: »

Cash is expensive for banks to handle so they'd probably be happier without it but I don't see what negative interest rates has got to do with it. You'd still have money in your account and that would attract negative interest.

The point is that you couldn't really have negative interest rates if you still have cash. People would just keep their savings in cash under the mattress instead of putting it in a bank and losing money through negative interest rates!

agrinnall

zagfles wrote: »

The point is that you couldn't really have negative interest rates if you still have cash. People would just keep their savings in cash under the mattress instead of putting it in a bank and losing money through negative interest rates!

The Bank of Japan would disagree with you, having recently set the base rate to -0.1%.

http://www.tradingeconomics.com/japan/interest-rate

zagfles

agrinnall wrote: »

The Bank of Japan would disagree with you, having recently set the base rate to -0.1%.

http://www.tradingeconomics.com/japan/interest-rate

I guess when it's only -0.1%, people might think paying 0.1% to the bank is worth it to keep their money safe. They might not think so if the rate is -5%

FOREVER21

zagfles wrote: »

I guess when it's only -0.1%, people might think paying 0.1% to the bank is worth it to keep their money safe. They might not think so if the rate is -5%

If bank rate drops to negative rate then I for one will cease to be a customer of any bank.

I will then resort to paying bills etc, by cash, and make my best efforts to spend my surplus cash.

I seem to recollect that I managed quite well before Internet banking became fashionable, and now being retired I would have the time to pay bills with cash.

No please not for me a cashless society.

No_6

Never have cash on me, always use a 0% purchase card, for all
purchases.
The money is available but like the perks from spending
on different cards.
They give me money to use their cards and I only pay the minimum each month and I get points or cash back.

Min payments covered by DD's and have the money to pay off when 0% deal finishes

20aday

I prefer to use my credit card(s) because I earn rewards on qualifying spending.

Not only that most transactions have Section 75 protection should a problem arise.

If/when credit card rewards are a "thing of the past" then I'd use cash most of them except for example situations as Section 75 etc.

boliston

Surely if interest rates went negative people would borrow large sums simply to pocket the income