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Matthew2018

eskbanker wrote: »

So when you said 'banks are still going bust' as if it was a fact (and relevant to a UK saver), what you actually meant was that you've read about a German bank that's had some issues but is still trading?

Oh that's what I meant! :T

coyrls

Matthew2018 wrote: »

I don't have that much cash out myself but have been considering getting out more than a day or so of cash for expenses.

More than a day or so? Things must be bad.

Malthusian

If you're worried about being unable to buy food for a couple of days due to the failure of electronic banking then buy some cans.

Cash is pointless, if there's a global failure of banking systems (which almost certainly won't happen), most shops won't be able to accept it. (A few enterprising traders may sell food for cash and keep records with pen and paper, but supermarkets will simply shut until their systems come back up.) Everyone should have enough cans / pasta / rice / spices in their kitchen to put together a tolerable meal without going shopping.

If you're worried about being unable to buy food for longer than that because of a permanent failure of electronic banking, then take some martial arts classes, because it will be every person for themself.

Negative interest rates are spreading around the world, where effectively you pay the bank to keep your money. Keeping cash might be cheaper than keeping it the bank.

No-one is going to be paying negative interest rates unless they are lazy. Lazy people already can because some bank accounts charge fees and don't pay enough interest to cover this if you don't keep enough in the account. Loss-leader accounts are too far above zero for universal negative interest rates to be a realistic possibility in the short-medium term.

Matthew2018

Malthusian wrote: »

If you're worried about being unable to buy food for a couple of days due to the failure of electronic banking then buy some cans.

Cash is pointless, if there's a global failure of banking systems (which almost certainly won't happen), most shops won't be able to accept it. (A few enterprising traders may sell food for cash and keep records with pen and paper, but supermarkets will simply shut until their systems come back up.) Everyone should have enough cans / pasta / rice / spices in their kitchen to put together a tolerable meal without going shopping.

If you're worried about being unable to buy food for longer than that because of a permanent failure of electronic banking, then take some martial arts classes, because it will be every person for themself.


No-one is going to be paying negative interest rates unless they are lazy. Lazy people already can because some bank accounts charge fees and don't pay enough interest to cover this if you don't keep enough in the account. Loss-leader accounts are too far above zero for universal negative interest rates to be a realistic possibility in the short-medium term.

I give you Super Mario Draghi soon to be ex-president of the ECB (European Central Bank). Interest rate for Deposits -0.50% that's minus 0.50% from 18 September 2019. He warns that rates could go even lower.


I know, he's not British and the ECB is not a UK bank, so it doesn't count. Or does it?

Malthusian

Matthew2018 wrote: »

I know, he's not British and the ECB is not a UK bank, so it doesn't count. Or does it?

No. Not in the context of a UK Savings & Investments forum.

If the margin between best-buy rates and bank base rate remained the same, interest rates would have to fall to - 0.86% before savers would have to pay banks to hold their money on easy access.

Which is precisely why the Bank of England won't lower rates that far because it's undesirable for people to hoard cash under the floorboards. They will print money instead.

Matthew2018

Malthusian wrote: »

No. Not in the context of a UK Savings & Investments forum.

If the margin between best-buy rates and bank base rate remained the same, interest rates would have to fall to - 0.86% before savers would have to pay banks to hold their money on easy access.

Which is precisely why the Bank of England won't lower rates that far because it's undesirable for people to hoard cash under the floorboards. They will print money instead.

OK. As you say, this is not the correct forum for this. I'll stop now.

Alexland

Grandmother just wanted to gift some money and we have accused her of tax evasion and dragged her into Deutsche Bank, Enemy Action and started buying tinned food. Let's hope she doesn't have any more bright ideas!

atush

Malthusian wrote: »

If you're worried about being unable to buy food for a couple of days due to the failure of electronic banking then buy some cans.

Cash is pointless, if there's a global failure of banking systems (which almost certainly won't happen), most shops won't be able to accept it. (A few enterprising traders may sell food for cash and keep records with pen and paper, but supermarkets will simply shut until their systems come back up.) Everyone should have enough cans / pasta / rice / spices in their kitchen to put together a tolerable meal without going shopping.

If you're worried about being unable to buy food for longer than that because of a permanent failure of electronic banking, then take some martial arts classes, because it will be every person for themself.


No-one is going to be paying negative interest rates unless they are lazy. Lazy people already can because some bank accounts charge fees and don't pay enough interest to cover this if you don't keep enough in the account. Loss-leader accounts are too far above zero for universal negative interest rates to be a realistic possibility in the short-medium term.

Actually, getting some cash is a good idea. Being american (and floridian) it is routine for power to go out for days during a big storm. So having cash to pay for fuel and fresh food/water after x days is important. After you run thru what you have if you bothered to prepare.

Right here in the UK i was w/o power for 3 days once.

And i remember when people with certain banks lost use of internet banking, and even debit card use for a day or more.

bowlhead99

atush wrote: »

Actually, getting some cash is a good idea. Being american (and floridian) it is routine for power to go out for days during a big storm. So having cash to pay for fuel and fresh food/water after x days is important. After you run thru what you have if you bothered to prepare.

Right here in the UK i was w/o power for 3 days once.

And i remember when people with certain banks lost use of internet banking, and even debit card use for a day or more.

Alexland wrote:

Grandmother just wanted to gift some money and we have accused her of tax evasion and dragged her into Deutsche Bank, Enemy Action and started buying tinned food. Let's hope she doesn't have any more bright ideas!

It was notable in the Keanu Reeves multi-part documentary, "John Wick" that he rarely used cash or debit cards at all, instead preferring to exchange gold coins to procure a broad variety of valuable services and favours.

jamei305

Malthusian wrote: »

If someone is making significant gifts to manage an Inheritance Tax liability they absolutely must keep a full record of their gifts as it will make their executors' job a lot easier when they die.

If someone is trying to minimize inheritance tax by giving money away, it obviously make sense that they would record cash gifts if the felt it would assist their executors in this aim.


However it's perfectly acceptable for someone not to care less about any possible inheritance tax or how their executors deal with it. They are free to give gifts in cash or otherwise while they're alive without thinking about it. In fact if I was dolling out cash gifts to relatives and they were like "ooh steady on old fellow, if you die within x years this gift may be worth slightly less to me than otherwise due to the marginal rate of tax on all the other money you will leave to me" I'd tell them where to go.