Hey there! Sign in to join this conversationNew here? Join for free

Natwest considering negative interest rates Watch

    • TSR Community Team
    • Thread Starter
    Offline

    20
    ReputationRep:
    TSR Community Team
    (Original post by ChaoticButterfly)
    Good thing you are moving up to scotland
    Time to start learning Gaelic
    :work:
    Offline

    19
    ReputationRep:
    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 :rolleyes:
    Offline

    1
    ReputationRep:
    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.
    Offline

    3
    ReputationRep:
    Bizarre and greedy decision
    Offline

    19
    (Original post by Puddles the Monkey)
    https://www.theguardian.com/business...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:
    No! Excuse me while I go and switch banks...
    Offline

    18
    (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:
    Well, the near-zero interest rates should be of some help. :console:

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

    Outer Hebrides is good, too. :yep:
    Offline

    0
    ReputationRep:
    RIP natwest
    Offline

    19
    ReputationRep:
    (Original post by Puddles the Monkey)
    https://www.theguardian.com/business...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:
    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
    Offline

    19
    ReputationRep:
    (Original post by Gora The Xplorer)
    Price of gold soars.
    Just wait until they try and do away with physical currency lol
    Offline

    16
    ReputationRep:
    (Original post by Gora The Xplorer)
    Price of gold soars.
    I'm holding out for the US elections it will go up either way
    Offline

    20
    ReputationRep:
    (Original post by Puddles the Monkey)
    Time to start learning Gaelic
    :work:
    We may lose you to the scots when they break away and float off :eek3:

    You could well end up finishing you masters in a foreigner country :beard:
    Offline

    7
    ReputationRep:
    (Original post by Betelgeuse-)
    Just wait until they try and do away with physical currency lol
    Bitcoin?
    Offline

    19
    ReputationRep:
    (Original post by Gora The Xplorer)
    Bitcoin?
    I am sure it would do it no harm
    • Community Assistant
    Online

    21
    ReputationRep:
    Community Assistant
    (Original post by Puddles the Monkey)
    https://www.theguardian.com/business...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:
    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. :beard:
    The idea is that firms will make that capital work for them instead of having it sat around.
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    Would you like to hibernate through the winter months?
    Useful resources
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.