Natwest considering negative interest rates
Scroll to see replies
Original post by ChaoticButterfly
Good thing you are moving up to scotland 
Time to start learning Gaelic
It wouldnt be overly bad for most people it would be little different from what many other countries do whereby they charge for deposits/withdrawels from other banks ATMs and so on. That being said I dont imagine many businesses will be happy banking with them if they suddenly see a 0.5% fee on their balance 
I highly doubt this will happen, if it does it will be incredibly foolish.
Businesses already pay an annual fee for a business bank account. It is also almost impossible for UK interests rate to drop below 0%, this would increase instability which is exactly opposite to what a rate cut would aim for. It is against the interests of the BoE and our economy.
Natwest have no reason to introduce negative interest rate as long as they do not make a loss over the deposits it holds. In fact I really can't even see why they are suggesting this, given the extremely low likelihood of negative interest rate. By doing this they are simply scaring off their client base and would only harm its business, but then again Natwest and RBS are not known for their business prowess for a start.
Businesses already pay an annual fee for a business bank account. It is also almost impossible for UK interests rate to drop below 0%, this would increase instability which is exactly opposite to what a rate cut would aim for. It is against the interests of the BoE and our economy.
Natwest have no reason to introduce negative interest rate as long as they do not make a loss over the deposits it holds. In fact I really can't even see why they are suggesting this, given the extremely low likelihood of negative interest rate. By doing this they are simply scaring off their client base and would only harm its business, but then again Natwest and RBS are not known for their business prowess for a start.
(edited 7 years ago)
Original post by Puddles the Monkey
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?
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?
No! Excuse me while I go and switch banks...
Original post by Puddles the Monkey
Yeah... if only I could afford a house 
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 
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 Well, the near-zero interest rates should be of some help.
Maybe moving to the Outer Hebrides isn't such a bad idea given everything that's happening in the UK. 
I'm surprised that you didn't get Fife on that calculator thing - it is, if I recall correctly, the most affordable city in the UK, for housing. Certainly more so than a major city like Glasgow, I should think.
Outer Hebrides is good, too.
RIP natwest
Original post by Puddles the Monkey
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?
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?
Its aim to is for force you to spend your money instead of saving therefore boosting the economy. There are other forms of savings out there that are actually worth something unlike fiat currency such as gold
Original post by Gora The Xplorer
Price of gold soars.
Just wait until they try and do away with physical currency lol
Original post by Gora The Xplorer
Price of gold soars.
I'm holding out for the US elections it will go up either way
Original post by Puddles the Monkey
Time to start learning Gaelic
We may lose you to the scots when they break away and float off
You could well end up finishing you masters in a foreigner country
(edited 7 years ago)
Original post by Betelgeuse-
Just wait until they try and do away with physical currency lol
Bitcoin?
Original post by Gora The Xplorer
Bitcoin?
I am sure it would do it no harm
Original post by Puddles the Monkey
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?
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?
It's probably worth noting that free banking only really took off during the last business cycle, before then it was fairly common to pay in some form although the interest you got probably offset.
Anyhow, with the lack of inflation around this was not a shock and this situation won't change until either we see significant economic stimulus (seems unlikely in the fiscal environment though eyes will be on Japan) or government finally accepts that the market must be aloud to correct and you see house prices stall or decline (the only way is up after that), this again seems unlikely though.
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.
The idea is that firms will make that capital work for them instead of having it sat around.
Quick Reply
Related discussions
- NatWest student overdraft
- Breaking Down Student Bank Accounts: Which One Is The Best?
- Bank demanding repayment of overdraft
- Natwest 2021 video interview
- Natwest Graduate 2023
- Where to go for investment advice?
- NatWest Summer Internship 2024
- Best bank account for university students
- NatWest vs Santander student accounts
- Natwest Adapt account
- Natwest 2022 Graduate Scheme
- Student bank account 2nd year
- De-banked for expressing alternative social views
- Natwest-Membership number
- How does Natwest Student Overdraft work?
- Sir Howard Davies: Not that difficult to buy a home, says NatWest chair
- Natwest Grad scheme 2023 offer holders
- 2023 Summer Internship Thread
- Reserve status
- Child Trust Fund
Latest
Trending
Last reply 1 day ago
Why is the political left now censorious and authoritarian??Last reply 1 day ago
Is it true that British unis are prejudiced towards degrees from Scottish unis?Last reply 1 day ago
If the Russell Group was now a fair representation of what it still claims to beLast reply 2 weeks ago
TSR Goes Green: How important will the environment be in this year's election?Last reply 2 weeks ago
Research Rankings of universities if you add Research Quality & Intensity percentagesLast reply 1 month ago
Is University of Birmingham prestigious and respected well enough in UK ?Trending
Last reply 1 day ago
Why is the political left now censorious and authoritarian??Last reply 1 day ago
Is it true that British unis are prejudiced towards degrees from Scottish unis?Last reply 1 day ago
If the Russell Group was now a fair representation of what it still claims to beLast reply 2 weeks ago
TSR Goes Green: How important will the environment be in this year's election?Last reply 2 weeks ago
Research Rankings of universities if you add Research Quality & Intensity percentagesLast reply 1 month ago
Is University of Birmingham prestigious and respected well enough in UK ?
