Interest on savings could go negative!
Moderator: Peak Moderation
- Totally_Baffled
- Posts: 2824
- Joined: Thu Nov 24, 2005 11:09 am
- Location: Hampshire
Interest on savings could go negative!
TB
Peak oil? ahhh smeg.....
Peak oil? ahhh smeg.....

- WolfattheDoor
- Posts: 318
- Joined: Tue Jan 10, 2006 1:19 pm
- Location: Devon
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If savers lost money by putting it in a bank, then they wouldn't bother and the banks would have no money to lend out to mortgages which is what everybody says we need.
Besides, my building society, the Nationwide, has already said it is not going to reduce some mortgage rates to protect savers' rates.
Besides, my building society, the Nationwide, has already said it is not going to reduce some mortgage rates to protect savers' rates.
www.wolfatthedoor.org.uk
Alerting the world to the dangers of peak oil
Alerting the world to the dangers of peak oil
I'm almost tempted to bring my savings across here. We still have decent savings rates but at 275 forints to the pound I'd lose a lot on transfer without charges. I'm also reasonably convinced that despite having a manufacturing base the economy in Hungary is more likely than that of the UK to fall apart.
Precisely. That's why it wont happen. Banks need depositors. All negative savings rates would do is provoke a run and a massive increase in the sales of safes and piggy banks.WolfattheDoor wrote:If savers lost money by putting it in a bank, then they wouldn't bother and the banks would have no money to lend out to mortgages which is what everybody says we need.
I'd rather bury my money in the back garden than PAY a bank for the privilege of looking after it for me. Worked for Samuel Pepys. (Even if his dad did make a balls up of noting the burial location properly, resulting in the loss of a few coins)
Last edited by skeptik on Sun Jan 04, 2009 8:09 pm, edited 1 time in total.
"When the facts change, I change my opinion. What do you do, sir?"
John Maynard Keynes.
John Maynard Keynes.
It's interesting how the system works. If you want to borrow money from a bank you have to fill in forms, give proof of identity and have a squeeky clean record. But if the banks want to borrow your money you still have to fill in forms, give proof of identity and have a squeeky clean record!
We should be able to go to banks and building societies and negotiate a price and terms that suit us for them to have use of our money, especially in these difficult times. That's how a free market should work. Just like Tesco with the farmers. Oh I see now
We should be able to go to banks and building societies and negotiate a price and terms that suit us for them to have use of our money, especially in these difficult times. That's how a free market should work. Just like Tesco with the farmers. Oh I see now

Probably because *most* banks don't want to be hauled up as receivers of stolen goods, as accessories to terrorism, or on money laundering charges.JohnB wrote: But if the banks want to borrow your money you still have to fill in forms, give proof of identity and have a squeeky clean record!
...remember BCCI ?
"When the facts change, I change my opinion. What do you do, sir?"
John Maynard Keynes.
John Maynard Keynes.
Not for long though! Not a long term option unless you want to see your money evaporate. That this happens at all shows that there's a huge fear factor currently in operation - that some people would rather buy zero rated T-Bills than park their money in a bank.DominicJ wrote:Interest rates on US short term Tbills are already negative and foreigners got negative interest rates from the swiss banks in the 70's.
"When the facts change, I change my opinion. What do you do, sir?"
John Maynard Keynes.
John Maynard Keynes.
You can. See www.zopa.com Okay it's lending to other people rather than to banks, but you can set your own interest rate and decide whether to lend to prime or subprime folks.JohnB wrote:
We should be able to go to banks and building societies and negotiate a price and terms that suit us for them to have use of our money, especially in these difficult times. That's how a free market should work.
Interesting. Unfortunately I need the cash available in case I suddenly find my dream home, so I suppose I'm stuck with what I'm doing at the moment.Tess wrote:You can. See www.zopa.com Okay it's lending to other people rather than to banks, but you can set your own interest rate and decide whether to lend to prime or subprime folks.
Which is one of the problems banks have, I wouldnt borrow money that must be paid back at a moments notice, but then we expect banks to do that.Unfortunately I need the cash available in case I suddenly find my dream home, so I suppose I'm stuck with what I'm doing at the moment.
Not for me to deceide, I just dont hold cash, but during the 70's, people were prepared to pay a swiss bank to hold their moneyNot for long though! Not a long term option unless you want to see your money evaporate.
I'm a realist, not a hippie