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Unread 06-02-2021, 07:18 PM
armchair
 
Default Negative interest rates

Apparently, they are pretty widespread already in europe. I haven't had to deal with them but they are going to be all the rage soon by the sound of things.

Are negative rates for all savers on the way? What you need to know
Banks are increasing the number of customers whose savings will face a charge
Mon, Feb 1, 2021, 12:46
https://www.irishtimes.com/business/...know-1.4472978
Quote:
Whoís currently paying negative rates?
Credit unions, businesses and pension funds have been paying negative rates on deposits for some time now, with the charges ranging from about -0.65 per cent to -1 per cent.
Bank of England tells banks to start preparing for negative interest rates
4 February 2021, 14:26
https://www.lbc.co.uk/news/bank-of-e...nterest-rates/

That's a big yikes from me.
 
Unread 06-02-2021, 07:39 PM
est.1878
 
Default

The Mrs swears by premium bonds. Reckons she is statistically up. Also reckons if you think you are doing worse than average if you write (yep) to them you win next round.
 
Unread 06-02-2021, 08:28 PM
Patty_b
 
Default

Quote:
Originally Posted by est.1878
The Mrs swears by premium bonds. Reckons she is statistically up. Also reckons if you think you are doing worse than average if you write (yep) to them you win next round.
We used Premium bonds while saving our deposit, won more than we would have if we'd put the savings in a high interest ISA, also pretty flexible with withdrawing it (took less than 48 hours to get everything back out and into my account).

The only problem would be if you're minted and exceed the 50 grand limit. Although not sure if that's per household or just per person. It wasn't ever going to be an issue for us so I never checked.
 
Unread 06-02-2021, 08:39 PM
tatty
 
Default

PBís are fine when youíve maxed your ISA allowance AND youíre higher/additional rate.

Iím not sure Iíd bother with them otherwise.

As for negative IRís the actual impact for most will be negligible unless we see our banks following the lead of some Scandinavian mortgage providers in deducting the negative base rate from the outstanding balance each year...which is pretty unlikely to happen.

For investors it poses a problem in how to construct a portfolio when what would have traditionally provided your defensive ballast is eye wateringly expensive.
 
Unread 06-02-2021, 08:43 PM
armchair
 
Default

Quote:
Originally Posted by tatty
PBís are fine when youíve maxed your ISA allowance AND youíre higher/additional rate.

Iím not sure Iíd bother with them otherwise.

As for negative IRís the actual impact for most will be negligible unless we see our banks following the lead of some Scandinavian mortgage providers in deducting the negative base rate from the outstanding balance each year...which is pretty unlikely to happen.

For investors it poses a problem in how to construct a portfolio when what would have traditionally provided your defensive ballast is eye wateringly expensive.
I wouldn't want much savings in the bank when the time comes to pay for covid.
 
Unread 06-02-2021, 08:47 PM
tatty
 
Default

Quote:
Originally Posted by armchair
I wouldn't want much savings in the bank when the time comes to pay for covid.
It wonít be savings that are targeted, other than maybe the psa being reduced to zero for higher raters.

I can see pension tax relief becoming a flat rate at 30%.

Perhaps some adjustments of CGT allowances and rates.
 
Unread 06-02-2021, 08:55 PM
Carlton
 
Default

Quote:
Originally Posted by armchair
Apparently, they are pretty widespread already in europe. I haven't had to deal with them but they are going to be all the rage soon by the sound of things.

Are negative rates for all savers on the way? What you need to know
Banks are increasing the number of customers whose savings will face a charge
Mon, Feb 1, 2021, 12:46
https://www.irishtimes.com/business/...know-1.4472978


Bank of England tells banks to start preparing for negative interest rates
4 February 2021, 14:26
https://www.lbc.co.uk/news/bank-of-e...nterest-rates/

That's a big yikes from me.
All part of the plan to transfer the wealth of the masses in service of globalists. As if increasing the money supply to inflate the value of your savings away isnít enough.

Pods, bugs, ubi. Thatís the future theyíre working towards.
 
Unread 06-02-2021, 09:42 PM
TravellingRed
 
Default

Quote:
Originally Posted by est.1878
The Mrs swears by premium bonds. Reckons she is statistically up. Also reckons if you think you are doing worse than average if you write (yep) to them you win next round.
Just had a win on PB....a massive £25. Still more than I'd earn on it in interest for the year. I have money in a credit union as well; the rate has dropped but it's not gone negative yet.
 
Unread 11-03-2021, 11:53 PM
armchair
 
Default

Even without negative interest rates you are losing a minimum of 2% due to inflation.
 
Unread 11-03-2021, 11:55 PM
Mr_Ed
 
Default

I have it on very good authority that a large financial institution in the UK can't deal with NIR as there was never any programming / thought for it back in the day...
 
Unread 11-03-2021, 11:55 PM
Coracao
 
Default

No one should have savings in a bank account.

Have an emergency fund and stuff for holidays etc. Savings need to be invested elsewhere.
 
Unread 12-03-2021, 12:20 AM
red in cumbria
 
Default

Quote:
Originally Posted by Mr_Ed
I have it on very good authority that a large financial institution in the UK can't deal with NIR as there was never any programming / thought for it back in the day...
Ah, a millennium bug for our times.
 
Unread 12-03-2021, 12:24 AM
armchair
 
Default

Quote:
Originally Posted by Mr_Ed
I have it on very good authority that a large financial institution in the UK can't deal with NIR as there was never any programming / thought for it back in the day...
Yes, charging interest on money is a brand new thing for banks. Presumably, we'll need to bail them out a few trillion before they can figure it out. Joy!
 
Unread 12-03-2021, 03:44 PM
est.1878
 
Default

Actually doubtif NIR will actually happen as people will rush to get the money out as cash. And as we know the cash isn't there...

More likely a flat account fee, or banded depending on how much hold?

The threat of NIR is a tool itself? Bluff imo
 
Unread 12-03-2021, 03:53 PM
programmes?
 
Default

Question:

I have £9K sat in a normal bank savings account. I am adding £500 per month, but will probably need to withdraw it all around June next year. What should I do with it? Where should I place it? I don't think I'll need to access it for at least twelve months (barring emergencies).
 
Unread 12-03-2021, 03:54 PM
Sapien
 
Default

Quote:
Originally Posted by programmes?
question:

I have £9k sat in a normal bank savings account. I am adding £500 per month, but will probably need to withdraw it all around june next year. What should i do with it? Where should i place it? I don't think i'll need to access it for at least twelve months (barring emergencies).
gme
 
Unread 12-03-2021, 03:55 PM
tatty
 
Default

Quote:
Originally Posted by programmes?
Question:

I have £9K sat in a normal bank savings account. I am adding £500 per month, but will probably need to withdraw it all around June next year. What should I do with it? Where should I place it? I don't think I'll need to access it for at least twelve months (barring emergencies).

It's a while since I looked but you used to be able to pick up some decent rates for smaller amounts on the high st.

I definitely wouldn't be putting anywhere other than some form of cash account.
 
Unread 12-03-2021, 03:58 PM
est.1878
 
Default

Quote:
Originally Posted by Sapien
gme


And Cheltenham
 
Unread 12-03-2021, 04:42 PM
Jack Duckworth
 
Default

Quote:
Originally Posted by programmes?
Question:

I have £9K sat in a normal bank savings account. I am adding £500 per month, but will probably need to withdraw it all around June next year. What should I do with it? Where should I place it? I don't think I'll need to access it for at least twelve months (barring emergencies).
s&s isa
 
Unread 12-03-2021, 04:47 PM
programmes?
 
Default

Quote:
Originally Posted by Jack Duckworth
s&s isa
You reckon? Been looking at that possibility but worried about losses.

Are Hargreaves Lansdowne worth a look?
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