"Negative interest" scare again.

roddydogs

Here we go again, with story's of banks charging you to keep money in, has Santander heard about this, & what about ISAs, will they have negative interest?

typistretired

Only refers to business accounts.

colsten

Existing thread: https://forums.moneysavingexpert.com/discussion/5499466

kingrulzuk

If all the banks in UK start giving negative interest, I will just take the money out and keep it in the safe at home.

Doshwaster

kingrulzuk wrote: »

If all the banks in UK start giving negative interest, I will just take the money out and keep it in the safe at home.

Depends on whether you consider your money would be "safer" at home rather in the bank. What about the risk of theft or fire? How much cash would your home insurance cover? If you end up paying extra in insurance or home security then you are going to be no better off and your money would still lose value every year because of inflation.

I suppose those self-storage companies charge for keeping your stuff. Why shouldn't banks charge for keeping your money?

Ballard

kingrulzuk wrote: »

If all the banks in UK start giving negative interest, I will just take the money out and keep it in the safe at home.

A lot of people will say that this is their plan but I suspect that most will look at the logistics of doing that and opt to leave it in the bank.

At -0.25% it'd cost about 20p per £1,000 per month in the bank. Personally I'd rather pay that than worry myself sick that a fire or burglar would see me penniless.

Additionally, you'd probably be able to put the money on deposit for a year and not pay any interest (or at the very least not pay much).

teddysmum

A non-business customer is likely (though perhaps not when holding a number of interest paying current accounts) to make multiple purchases via plastic or cheque , where the bank can charge the seller a fee.


A business may well deposit sums of money in cash, which needs to be counted (manually or by machine) and may actually make few purchases, where fees can be levied.

PasturesNew

When I started work it cost 27p to write out a cheque.

pop_gun

Will companies who pay monthly to get the interest on the staff wages in the bank, now be inclined to pay weekly?

LXdaddy

pop_gun wrote: »

Will companies who pay monthly to get the interest on the staff wages in the bank, now be inclined to pay weekly?

No. The "interest" on the payroll is not the major driver in monthly payroll, it's processing cost. Running weekly payroll takes about four times the effort as running monthly payroll.

bigadaj

LXdaddy wrote: »

No. The "interest" on the payroll is not the major driver in monthly payroll, it's processing cost. Running weekly payroll takes about four times the effort as running monthly payroll.

For most companies it's also cash flow.