NEGATIVE INTEREST RATES

DireEmblem

It seems such a simple thing, but most banks infrastructures are potentially ancient, and will not account for something as simple as putting a negative in front of your interest rate for a net positive balance.  The negative interest sorts itself out - a negative balance x positive interest rate = overdraft interest.

quirkydeptless

I sometimes wonder if the Banks which drop their rates to 0.01% do so because it's the lowest number their computer system can cope with

Albermarle

It maybe the free banking model which the UK current account customer enjoys that maybe comes under ( renewed) pressure.
So no negative interest but introduction of charges for running the account , like in most other countries, 

stephenadarglas

Gossip mongering I'm afraid.

Speculator

HSBC in HK have been charging savers with less than HK$5000 (£500)  in their HK$ savings account HK$50 (£5) per month for almost two decades. Think it was abolished only last year.
A elderly relative wasn't aware of the fee and when she visited the bank to update her passbook, her savings balance was zero.

Thrugelmir

Albermarle said:

It maybe the free banking model which the UK current account customer enjoys that maybe comes under ( renewed) pressure.
So no negative interest but introduction of charges for running the account , like in most other countries, 

Current account charges have been mooted for the past decade. Now might be the time that banks can start the process. 

wiseonesomeofthetime

Thrugelmir said:

Current account charges have been mooted for the past decade. Now might be the time that banks can start the process. 

Like many, I have multiple current accounts.

If they all start charging to administer the account, then that number would need to be reviewed.

snowqueen555

Damn, my monybox lisa has gone down to 0.85%. Sucks for cash savers.

John464

Sailtheworld said:

Stick with NS&I. It's unlikely that any financial organisation within a government orbit is going to have the IT and processes in place to introduce negative rates.

Just because they don't have the systems in place doesn't stop them doing it

DireEmblem

onomatopoeia99 said:

If the base rate goes to -0.25%, theoretically my mortgage rate should go to -0.01%, although I expect there is small print that stops the building society from having to pay me interest on my mortgage.  

How on earth do you have a 0.24% mortgage?