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It's coming lads... get a vault under your bed.

Community Veteran
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It's coming lads... get a vault under your bed.

RBS is taking the first move towards negative interest rates by charging business customers for holding their funds in foreign currencies. I think we can all see the slippery slope that we're going to be riding on soon.

Apparently this is down to the BoE cutting interest rates and making it hard for the banks to make enough money for their bonus's.

Lets face it, the banks have been threatening to withdraw free banking for a long time and by now doing this, the end is near. This is supposed to be to stimulate the economy due to brexit... I think we can all see that it will be the start of increased (and expensive) banking costs to come:

http://www.dailymail.co.uk/news/article-3749817/RBS-bank-set-negative-rates-s-charging-large-firms-h...

 

I need a new signature... i'm bored of the old one!
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Re: It's coming lads... get a vault under your bed.

You'll get bizarre situations such as suppliers asking you not to pay in advance. It would be beneficial to the supplier, such as BT or other utilities, if you paid for 12 month's subscription in arrears at the end of the period.

It will also increase the advantages of putting your savings into gold rather than bank savings. You don't pay negative interest on cash/gold.

The whole banking system is weird at the moment. The central banks/government seem to think they can "print money" without longer term consequences, but it will come back to bite them.

People with spare money, rather than saving in a bank, have invested in property to rent, perhaps also taking advantage of low mortgage interest rates to complete the purchase. As a consequence house prices and rents are rising. This will only get worse as banks discourage savings while they can get cheap printed money.

Now Zen, but a +Net residue.
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Re: It's coming lads... get a vault under your bed.

Well, RBS is becoming the next Northern Rock...

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Re: It's coming lads... get a vault under your bed.

Mike Carney should be sacked! His pro remain statements before the Brexit vote show his partiality and I don't trust his judgement now. the doom scenarios have not materialised and the reduction of interest rates to current levels was too early. He should be tried for treason!

 

But I've not got my capital in deposit accounts. I've got rental properties and pensioner's bonds.  I've also got share based bonds and the FTSE 250 is zooming away!  The low interest rates will help with my kids mortgages though. 

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Minivanman
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Re: It's coming lads... get a vault under your bed.

Not sure how much money we'd need to have in order to justify a vault, I think I'll just stay with my penny jar whilst money as a cash reality disappears - and what then for the banking sector?

Anyway, the best way to hang onto your money is to have loads of it that you can pay some smart [-Censored-] accountant to avoid paying tax. You cannot take it with you but for some, they cannot take it off you either. 

All views expressed are my own but you can express them too if you want to be right about everything like I am.
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Re: It's coming lads... get a vault under your bed.


PeterLoftus wrote:

Mike Carney should be sacked!


He's either clueless or pretending to be clueless. I don't know which is worse.

It's basic economics that if you reduce interest rates and print money with gay abandon the value of your currency will fall.

Yet they're all acting as though the drop in £ value has nothing at all to do with their actions. Everything Carney has done since Brexit seems designed only to make his predictions come true. Someone somewhere must be making a lot of money if they're allowing him to continue in his inept and underhand fashion.

 

alanj
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Re: It's coming lads... get a vault under your bed.


PeterLoftus wrote:

Mike Carney should be sacked!


Why? What has he done? And who is he? Mark's lesser known brother, perhaps?

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Re: It's coming lads... get a vault under your bed.

@7up

I doubt it will happen, sure there has been talk of this for a number of years but which bank would make the first move and risk losing customers to other banks who would try to be the last in the list to end free banking.

Makes sense that business users are charged as I guess their accounts are used far more than the average persons account.

What I do see happening to bank accounts are charges made for the issue of cheque books and increases in charges for overdrafts, paper statements, etc but no specific charge for a basic account.

Banks do charge for some accounts which offer a range of, 'free services' such as travel insurance, breakdown cover etc but a number of customers get talked into getting these accounts but do not need or use these,'free services'

It was not long ago that at least one bank was offering customers £100 to open an account with them and others were offering similar inducments.

 

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Re: It's coming lads... get a vault under your bed.

What I don't get is, banks take your money, invest it in stuff (that doesn't always pay off, like sub-prime mortgages!), then pay you interest as a "thank you" for letting them put your money at risk in things that may or may not work out for the better, but with charging you for giving them your money for them to mess about with and potentially lose in the process, that isn't right, and it'll never work out for them...

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Re: It's coming lads... get a vault under your bed.


twocvbloke wrote:

banks take your money


The root of the problem is they already have it and no longer have to plead for us to open our wage packets to hand them some of our hard earned money. They have the lot on pay day and we have to go to them. Us pleading to them is probably not far off.