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Natwest considering negative interest rates

https://www.theguardian.com/business/2016/jul/25/natwest-paves-way-for-introduction-of-negative-interest-rates

It's only a possibility for their business accounts at the moment.

I'll be honest, I don't really understand what the benefit of doing this is. It seems crazy. Is it? :holmes:
(edited 7 years ago)

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I'm with Natwest! :afraid:
Original post by ChaoticButterfly
I'm with Natwest! :afraid:


Are you a business?
Price of gold soars.
Original post by ChaoticButterfly
I'm with Natwest! :afraid:

Bank warns business customers it may have to charge to accept deposits but says it has no plans to do so for personal accounts
What does this mean exactly?
Reply 6
*withdraws all money from bank*
Original post by teenhorrorstory
What does this mean exactly?


It means business customers pay the bank a % of their deposit to keep money in the bank.

Normally the bank pays you interest on the money you keep with them. Interest rates are close to 0% at the moment, Natwest in considering going past that into negative interest.

I think.
Reply 8
Original post by teenhorrorstory
What does this mean exactly?


You pay to put your money in the bank, but it's just for businesses.
Original post by Josb
You pay to put your money in the bank, but it's just for businesses.


But if it's negative interest it's not a one off flat fee - it means your money will continue to shrink over time. :beard:
(edited 7 years ago)
Reply 10
Original post by Puddles the Monkey
But if it's negative interest it's not a one off flat fee - it means your money will continue to shrink over time.


Yes, probably a small fee every month. I think the bank is pushing its clients to opt for more risky accounts.
Wow.... I bank with Natwest and my mum banks with Natwest for her business. :lol:
This is a bit off topic but say you haven't touched the money in your bank account for like a year or so does the interest keep increasing. I have an account with Natwest (not business though).
Original post by iEthan
Wow.... I bank with Natwest and my mum banks with Natwest for her business. :lol:


I Imagine they'll lose a lot of business customers if they go through with this and other banks don't... :holmes:

Spoiler

Original post by Ladymusiclover
This is a bit off topic but say you haven't touched the money in your bank account for like a year or so does the interest keep increasing. I have an account with Natwest (not business though).


In theory, yes. But interest rates are so poor at the moment you probably won't see very much :sigh:
Original post by Puddles the Monkey
In theory, yes. But interest rates are so poor at the moment you probably won't see very much :sigh:


It's a good time to remortgage though. :beard:
Original post by Hydeman
It's a good time to remortgage though. :beard:


Yeah... if only I could afford a house :cry2: I checked the "where can you afford to live?" calculator on the BBC and I can afford a house in the Outer Hebrides and around Glasgow only :rofl:

Maybe moving to the Outer Hebrides isn't such a bad idea given everything that's happening in the UK. :beard:
Reply 17
Businesses would be able to offset the costs as an expense to reduce any Corporation Tax liability.

Personal customers could not.

I think this distinction will be a key factor in (a) taking this decision and (b) who it applied to
Original post by Donkey******
Bank warns business customers it may have to charge to accept deposits but says it has no plans to do so for personal accounts


:^_^:
Original post by Puddles the Monkey
Yeah... if only I could afford a house :cry2: I checked the "where can you afford to live?" calculator on the BBC and I can afford a house in the Outer Hebrides and around Glasgow only :rofl:

Maybe moving to the Outer Hebrides isn't such a bad idea given everything that's happening in the UK. :beard:


Good thing you are moving up to scotland :wink:

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