Bad news for savers

xylophone

Public ally Mark Carney

Or Public Enemy No 1?:)

Is there something of The Demon Headmaster about those eyes.......:eek:


https://www.moneymarketing.co.uk/carney-rejects-prospect-negative-interest-rates/

Pincher

"Don't quote me, this is just between you and me. I was at this pub, and my best friend who knows the guy who sleeps with the stenographer......"

talexuser

All we need is the next run on the pound for interest rates to rise again. Likelihood... who knows?

Malthusian

SheffD57 wrote:

we also have just had a payout from an investment with that Natwest but didn't perform very well it should have been 6% per yearsover 6 years and ended up being 5% total.

So your bank tied salesman has been flogging you rubbish structured products that tied your money up for six years and returned sod all over a period in which the FTSE World Index doubled, and yet you're still listening to what he says about the UK economy? What does he need to do to make you stop listening to him? Punch you in the face? Shoot your cat?

Glen_Clark wrote: »

According to Osborne rates will rise https://www.theguardian.com/business/2016/apr/15/george-osborne-says-brexit-will-drive-up-interest-rates

But the rise in income tax from 20% to 24% would have wiped out any extra interest on our savings for most of us.

IanManc

SheffD57 wrote: »

We have been told in confidence by a bank advisor that the government and the Bank of England are talking about reducing interest below 0% if the cut to 0.25% doesn't do the trick.

Can your "bank advisor" tell me next week's winning lottery numbers as well? "In confidence", of course.

Linton

In any case negative BoE bank base rates dont mean that private depositers will have money taken off them from their bank accounts. The bank base rate refers to the interest rate BoE charges for money it lends to the commercial banks. The BoE wants the banks to lend out money to their commercial customers to encourage growth and so is pushing money in their direction.

The interest rate banks charge or pay their customers is determined by commercial considerations. It is affected indirectly by base rate but that is only one of many factors. The banks can offer virtually zero interest rates and impose charges but actual negative rates are extremely unlikely. After all what the banks really want is customers who will buy other things from them or borrow from them. Pushing away private savers by real negative interest rates would be totally counter-productive.

beecher2

SheffD57 wrote: »

HI
We have been told in confidence by a bank advisor that the government and the Bank of England are talking about reducing interest below 0% if the cut to 0.25% doesn't do the trick. This means that savers will have interest taken off them to keep money in the bank rather than the other way round. I want to know what effect this will have on investments and would it be better to invest our savings in further investments or use it to buy things like bullion.

Yours worried SheffD57

Haha, as if the bank teller knows what's going to happen. He must've been very bored at work that day.

sheramber

So you have shared what you were told in confidence with how many people?

redpete

sheramber wrote: »

So you have shared what you were told in confidence with how many people?

Let's hope the press don't get to see this thread otherwise there could be a disastrous rush to withdraw cash from the banks and the predictions of a deep recession and a failed harvest will come true.

hildosaver

Nobody has a clue what is going to happen over the next few years - the possibility of BOE further reducing the interest rate is real though.