Negative interest rates for personal banking customers unlikely despite warning to co 26 July 2016 at 12:55PM in Budgeting & bank accounts 10 replies 2K views

Former_MSE_Faye

The prospect of personal customers receiving negative interest rates is unlikely, despite a warning to business clients...

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'Negative interest rates for personal banking customers unlikely despite warning to commercial clients'

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kingrulzuk

MSE_Faye wrote: »

The prospect of personal customers receiving negative interest rates is unlikely, despite a warning to business clients...

Read the full story:
'Negative interest rates for personal banking customers unlikely despite warning to commercial clients'

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

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.

minislim

it could only come from RBS/natwest!

they already rip off their existing customers giving them paltry returns on their money.

and now they're threatening negative interest rates and charging people for the privilege of banking with them!

and yet some many will still stick with them?

WHY?

Ballard

minislim wrote: »

it could only come from RBS/natwest!

they already rip off their existing customers giving them paltry returns on their money.

and now they're threatening negative interest rates and charging people for the privilege of banking with them!

and yet some many will still stick with them?

WHY?

I don't bank with that group but if rates are negative why would you expect banks in general not to pass this cost onto their customers?

Kernel_Sanders

Ballard wrote: »

I don't bank with that group but if rates are negative why would you expect banks in general not to pass this cost onto their customers?

The money they borrow from us is lent to business and personal borrowers, not just deposited at the Bank of England. Any extra cost would be levied on the borrower, surely?

Ballard

Kernel_Sanders wrote: »

The money they borrow from us is lent to business and personal borrowers, not just deposited at the Bank of England. Any extra cost would be levied on the borrower, surely?

Certainly not the full amount. For liquidity purposes banks have to hold a percentage of call money ready for immediate withdrawal. The percentages for each bank aren't published, to the best of my knowledge, but it was very strict at my last bank. We were not allowed to use the deposits on customer current accounts to fund term lending at all. I wouldn't expect it to be so strict at a high street bank, though.

Thrugelmir

minislim wrote: »

it could only come from RBS/natwest!

they already rip off their existing customers giving them paltry returns on their money.

and now they're threatening negative interest rates and charging people for the privilege of banking with them!

and yet some many will still stick with them?

WHY?

Other banks will follow. They are merely ensuring their account terms and and conditions cover all eventualities.

Euro denominated accounts have being negative rates of interest with some banks for a while now. As a quasi sector public sector body we've moved all our accounts from Citibank to NatWest. No small exercise.

Herbalus

The prospect of personal customers achieving no interest at all prevails despite a raft of accounts that offer otherwise...

This is a non story. Personal and business accounts are miles apart. Imagine telling personal customers that they're going to have to pay 27p to deposit a cheque, and 21p for every payment they make, and 15p to withdraw cash (figures from memory).

minislim

really? people think that banks would struggle to make money in negative interest rates?

compared with other banks natwest and rbs customers get little for the monies invested in them.
so to then say they'll start charging as well is really cheeky.

i dont mind paying for banking if im getting something good in return.

fittaedae

Really hacked off at this as we have run our small company for 9 years with no overdraft and always in credit, to hit us firstly with more "simplified charges" which actually means more that £50 a year added charges and then to penalise us for being in credit. Have spoken to our relationship manager and he says that they have had lots of hacked off business customers getting in touch the past few days.

We are looking to move for a better service, as minislim says we also don't mind paying for banking if you get a good service! Anyone have ideas for good reliable small business banking options?

Herbalus

I know that HSBC offer a free period when you switch to them, and then cap charges at something like £7/month after that depending on the size of your business - I think it's small businesses but I don't know how small yours is.

The service depends to an extent on who your relationship manager is I guess.