Natwest considering negative interest rates Watch

Puddles the Monkey
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#1
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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:
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ChaoticButterfly
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I'm with Natwest! :afraid:
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Duncan2012
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(Original post by ChaoticButterfly)
I'm with Natwest! :afraid:
Are you a business?
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Gora The Xplorer
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Price of gold soars.
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Bittah Demon
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(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
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teenhorrorstory
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What does this mean exactly?
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fefssdf
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*withdraws all money from bank*
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Puddles the Monkey
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(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.
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Josb
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(Original post by teenhorrorstory)
What does this mean exactly?
You pay to put your money in the bank, but it's just for businesses.
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Puddles the Monkey
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(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:
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Josb
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(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.
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Paracosm
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Wow.... I bank with Natwest and my mum banks with Natwest for her business. :lol:
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Ladymusiclover
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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).
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troubadour.
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(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:

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Puddles the Monkey
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(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:
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troubadour.
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(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:
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Puddles the Monkey
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(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:
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viffer
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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
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ChaoticButterfly
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#19
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(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
:^_^:
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ChaoticButterfly
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(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
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