Anyone on MINUS % bank rates yet

[Electric_Andy]

Not sure I'd want to keep my savings in cash at home, unless I had a very heavy duty safe, which would cost hundreds even thousands to buy. With the amount I have it would be false economy.

Likewise, I can see £5/month being charged for current accounts. After all, you have to pay for other services so it's not unreasonable to be charged for moving your money around securely.

I think more people with substantial savings are going to want to buy property in future, which will only make affordable housing more difficult.

 

[fossyant]

More old folk stashing cash. MIL used to keep doing it when at home - it caused us right headaches when the £10 changed, and now the £20's.

Let's say she (MIL) wanted to squirrel it away for her funeral (still not dead, and not going to be any time soon) but it's left us with the headache of changing her £3k of old £20's without running it through the 'bank' !

None of us particularly want to pay £3k into our accounts then to take it all out again as cash. I read there is something like £50bn of 'cash' out of circulation and 'stashed'.

 

[Notafettler]

Not yet but it won't be long. As I said on the old duffers thread now, if you have £1000 you will earn 0.10p in twelve months. It won't be long before they drop all rates to nil. Then negative interest rates might happen and you will have to pay the banks money to keep yours in their bank.

They are at the end of the day supply a service. So charging is not totally unreasonable. Its the consequences of doing so that are the problem.

 

[johnblack]

1.4% fixed for two years is about the best you can hope for at the minute. its pretty awful.

 

[ColinJ]

I would guess those last one's may have debts that will be easier to pay with lower interest rates, some of us can remember 15% mortgages,

I bought my house in 1988. Initially, I was paying 1/3 of my net income for my endowment policy and mortgage interest. In less than 6 months interest rates shot up and those costs rose to over 2/3 of my net income.

I was desperately worried that the interest rate was not going to stop rising. Fortunately, it did, at about 15%!

 

[ianrauk]

I bought my house in 1988. Initially, I was paying 1/3 of my net income for my endowment policy and mortgage interest. In less than 6 months interest rates shot up and those costs rose to over 2/3 of my net income.

I was desperately worried that the interest rate was not going to stop rising. Fortunately, it did, at about 15%!

Yep. A lot of us of our generation were in the same boat. It was tough going for a long while until they started coming down.

 

[Notafettler]

. I read there is something like £50bn of 'cash' out of circulation and 'stashed'.

Where!!!

 

[Notafettler]

1.4% fixed for two years is about the best you can hope for at the minute. its pretty awful.

Not that awful if the following continues
CPI+H 0.5% to August down from 1.1% for the year to July.
CPI 0.2% in August 2020, down from 1.0% in July.

 

[johnblack]

I worked for Nationwide at the time, peaked out at 15.4%, people in arrears got to the point that they were just posting their house keys back to us and walking away. Crazy times, I was able to buy my first house with a really cheap staff mortgage and houses were going dirt cheap at the time. How things change.

 

[raleighnut]

Just a thought,

If interest rates on savings are negative will banks be paying overdrawn customers money instead of charging us, after all we're storing their cash for them.

 

[chris-suffolk]

From what I understand from other countries, I think it's corporations that end up with negative rates. Private individuals may have a zero rate, but probably not actually negative. But who knows, the UK likes to do things differently.

 

[Notafettler]

Just a thought,

If interest rates on savings are negative will banks be paying overdrawn customers money instead of charging us, after all we're storing their cash for them.

With credit cards they often do. Ie sainsbury gave me £30 if I made 4 purchases in there supermarket in 2 months and £6000 of spending at zero % interest for 17 months. Thats an example had a few of them over the years.

 

[fossyant]

Where!!!

Not in my house anyway.....

 

[classic33]

a time loop in which a time traveler who has gone into the past causes an event that ultimately causes the original future version of the person to go back into the past."]I read there is something like £50bn of 'cash' out of circulation and 'stashed'.

The Bank of England says there are around two billion of the notes* currently in circulation.

*This applies to the last paper £20 note issued.

 

[Dave7]

I bought my house in 1988. Initially, I was paying 1/3 of my net income for my endowment policy and mortgage interest. In less than 6 months interest rates shot up and those costs rose to over 2/3 of my net income.

I was desperately worried that the interest rate was not going to stop rising. Fortunately, it did, at about 15%!

I recall that clearly but from the 70s.
Our mortgage was only £6kish but I was not earning big money and was seriously worried