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keelansgrandad

Negative Interest Rates

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The BoE has told high street Banks to prepare for negative interest rates.

Are we all going to start pulling our ISAs out and shoving the money under the mattress?

Is it really going to stimulate spending?

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10 hours ago, keelansgrandad said:

The BoE has told high street Banks to prepare for negative interest rates.

Are we all going to start pulling our ISAs out and shoving the money under the mattress?

Is it really going to stimulate spending?

I very much doubt it, and even if it does stimulate some extra spending will it be in areas that actually benefit the real economy - again I very much doubt it.

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3 hours ago, Creative Midfielder said:

I very much doubt it, and even if it does stimulate some extra spending will it be in areas that actually benefit the real economy - again I very much doubt it.

Isn't it intended to encourage borrowing for Investment? Sure sign the economy is on its knees

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28 minutes ago, BigFish said:

Isn't it intended to encourage borrowing for Investment? Sure sign the economy is on its knees

Is it though?

I am not going to leave my ISAs in Lloyds Bank if instead of the 0.5% interest I now receive is changed to them taking 0.5% off me for the privilege. Or is that not the way it will work.

I assumed they want us to spend rather than save to stimulate the real economy which is day to day spending whether its a car or bottle of milk.

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3 minutes ago, keelansgrandad said:

Is it though?

I am not going to leave my ISAs in Lloyds Bank if instead of the 0.5% interest I now receive is changed to them taking 0.5% off me for the privilege. Or is that not the way it will work.

I assumed they want us to spend rather than save to stimulate the real economy which is day to day spending whether its a car or bottle of milk.

Why can't it be both?

Perhaps its a move designed to encourage Norwich to finally build a new stand?

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5 minutes ago, Barbe bleu said:

Why can't it be both?

Perhaps its a move designed to encourage Norwich to finally build a new stand?

Why? The ground is nearly always empty now. People are voting with their feet😁

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15 minutes ago, keelansgrandad said:

Is it though?

I am not going to leave my ISAs in Lloyds Bank if instead of the 0.5% interest I now receive is changed to them taking 0.5% off me for the privilege. Or is that not the way it will work.

I assumed they want us to spend rather than save to stimulate the real economy which is day to day spending whether its a car or bottle of milk.

Cash ISAs are not a good investment, period. Put your money in a stock market ISA. Mine have increased 10% over past 12 months. 

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I doubt even with negative rates if the banks will charge, I think it’ll be zero interest on savings at worst as they certainly won’t want a run on the money, that would send the economy into free fall!

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Just now, Rock The Boat said:

Cash ISAs are not a good investment, period. Put your money in a stock market ISA. Mine have increased 10% over past 12 months. 

Trouble with any investment at present including housing is that they estimate it’s artificially inflated and could shrink by up to 30%. But again it’s all speculation, as I’ve invested my pensions into a global fund and it’s been brilliant over the past 18 months.

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1 minute ago, Rock The Boat said:

Cash ISAs are not a good investment, period. Put your money in a stock market ISA. Mine have increased 10% over past 12 months. 

To be honest, I am not bothered about the yield. Some of the ISAs are my works pension which I took as a lump sum. So I received 100% interest as my employer matched my contribution plus it had decent growth as a scheme.

Good luck with your investment. You are braver than me. I'm afraid I'm a steady Eddie with my money.

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1 hour ago, keelansgrandad said:

Is it though?

I am not going to leave my ISAs in Lloyds Bank if instead of the 0.5% interest I now receive is changed to them taking 0.5% off me for the privilege. Or is that not the way it will work.

I assumed they want us to spend rather than save to stimulate the real economy which is day to day spending whether its a car or bottle of milk.

Drink more milk that'll larn 'em.

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52 minutes ago, keelansgrandad said:

Why? The ground is nearly always empty now. People are voting with their feet😁

I tried and the pencil fell out between my toes.

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1 hour ago, BigFish said:

Isn't it intended to encourage borrowing for Investment? Sure sign the economy is on its knees

Probably but then so was quantitive easing and that was a total flop in terms of investment in the real economy.

Let's face it, if you are a business with good opportunites to invest further then a positive but miniscule interest rate as we have already is the least of your problems.

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1 hour ago, keelansgrandad said:

Is it though?

I am not going to leave my ISAs in Lloyds Bank if instead of the 0.5% interest I now receive is changed to them taking 0.5% off me for the privilege. Or is that not the way it will work.

I assumed they want us to spend rather than save to stimulate the real economy which is day to day spending whether its a car or bottle of milk.

It's a Macro-eceonomic policy KG, not one to encourage Joe Public to spend. Intention would be to encourage the banks to lend more rather than sit on cash piles, industry to borrow more on plant and machinary increasing the country's productive capacity for when the post Covid mini-boom starts. UK productivity has been reduced through Brexit/deflationary Tory economic policies for a decade/the banking crash/long term trends so very ill-prepared.

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45 minutes ago, ricardo said:

I tried and the pencil fell out between my toes.

Don't forget to take your own for the May local elections.

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37 minutes ago, CANARYKING said:

Closed all my ISA’s and put it Premium Bonds, won over £2000 in three years

Now and again I lend friends and family money so maybe half into premium bonds wouldn't be a bad idea.

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Just now, sonyc said:

Denmark has had negative rates since about 2012. Interestingly it seems to have been a good thing  ...in terms of employment especially. 

Link here for interest.

 Negative interest rates see banks enter the unknown – European CEO: https://www.europeanceo.com/finance/as-negative-interest-rates-persist-banks-are-stepping-into-the-unknown/

 

Nice to see you back Sonyc.

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I have a small shares ISA which I only just started investing in (not a fan of touching them, but interest rates are so bad that prudent folks like me get shafted), a cash ISA which has enough for six months if nothing comes in, three little "pot" accounts, although one of them is my income tax account which I expanded to cover ground rent, council tax and buildings insurance, and to be fair, there's enough in that to fly past the three remaining things for this year (ground rent was paid in December). The other two are for professional memberships and entertainment, so holidays and such go in there.

Throw in a work pension, a personal stakeholder, and a small holding of premium bonds. I'll probably push the bonds very hard now as I opened the shares ISA only a couple of weeks ago, so can't invest in the cash ISA now.

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Anybody using the Shares app?

My Grandson and his girlfriend are using one each. Grandsons is about 10% down but his Girlfriends is virtually double.

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27 minutes ago, keelansgrandad said:

Now and again I lend friends and family money so maybe half into premium bonds wouldn't be a bad idea.

Do you send the boys round if thet don't repay on time?

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27 minutes ago, ricardo said:

Do you send the boys round if thet don't repay on time?

I did the first time but they didn't come back.

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9 hours ago, BigFish said:

Isn't it intended to encourage borrowing for Investment? Sure sign the economy is on its knees

Blimey you are aware..... not so asleep after all.  🤗

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Anyone technologically inclined should be looking into staking stable cryptocurrencies. Coins like USDT that track the dollar and therefore have no volatility are paying approx. 6% APY and will continue to do so irrespective of fiat interest rates.

Edit to say NOT FINANCIAL ADVICE! But happy to explain further if anyone is actually interested.

Edited by Krul Mistress

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