benaj
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Post by benaj on Oct 12, 2020 11:42:30 GMT
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Post by Deleted on Oct 12, 2020 15:03:26 GMT
Will this be negative for retail? I doubt it.
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Post by Deleted on Oct 12, 2020 22:13:56 GMT
Time for a bigger mattress.
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aj
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Post by aj on Oct 13, 2020 6:58:54 GMT
More than ready!
My mortgage is a tracker +x% so good news on that front.
My UK equities would be aided by a reduction in rates.
My other investments are on fixed rates, so no hit for me there until maturity.
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moonraker
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Post by moonraker on Oct 13, 2020 7:16:43 GMT
I have several fixed-rate accounts maturing soon, including one with Investec who kindly offer me a renewal rate of 0.5% for one, two and three years. A quick look at comparison sites suggests I can get 1.4% or so with institutions with which I'm already invested, usually up to the FSCS limit. I've stopped my withdrawals from Ratesetter, having significantly reduced my holding, and am re-investing interest. I continue to reduce my larger holdings with Zopa.
To find a home for the matured sums I'm looking at the stock market, though it's not generally recommended for a person of my age. But I guess that yet more money will pour into stocks & shares, further inflating the bubble.
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Post by dan1 on Oct 13, 2020 7:44:13 GMT
I have several fixed-rate accounts maturing soon, including one with Investec who kindly offer me a renewal rate of 0.5% for one, two and three years. A quick look at comparison sites suggests I can get 1.4% or so with institutions with which I'm already invested, usually up to the FSCS limit. I've stopped my withdrawals from Ratesetter, having significantly reduced my holding, and am re-investing interest. I continue to reduce my larger holdings with Zopa.
To find a home for the matured sums I'm looking at the stock market, though it's not generally recommended for a person of my age. But I guess that yet more money will pour into stocks & shares, further inflating the bubble.
Probably a good time to mention money market funds. Not so much for yourself moonraker but for those who've taken risk off the table in SIPPs where there isn't access to the full plethora of fixed rate accounts available elsewhere.
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m2btj
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Post by m2btj on Oct 13, 2020 8:03:05 GMT
All seems like a lot of effort to make a few quid these days! I've decided to spend some money & enjoy it while I can! Had a lovey time in the Lakes last week.
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moonraker
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Post by moonraker on Oct 13, 2020 13:13:25 GMT
All seems like a lot of effort to make a few quid these days! I've decided to spend some money & enjoy it while I can! Had a lovey time in the Lakes last week. Certainly I agree with your first sentence. Curiously I can't be bothered to replace my 2008 Honda Civic (only 32,000 miles) though there are said to some good deals going for new cars.
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Oct 14, 2020 13:43:44 GMT
I Thought those of us investing in P2P were already effectively experiencing -ve interest rates
If they go -ve for retail I will mortgage my house, and let the cheques roll in !
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benaj
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Post by benaj on Oct 14, 2020 13:45:57 GMT
Well, even with negative interest, the poor bank account holder will get 100% capital back with FSCS right?
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Post by Deleted on Oct 14, 2020 15:58:18 GMT
Probably worth looking at Japan, where negative interest rates have been pretty well normal for some time and the demographics are in advance of ours. The result is just about nothing in terms of stimulating the market. The old have the money, they have all the toasters they want and because money will gain in value going forward there is no need to buy a replacement toaster yet.
In reality the drive for negative interest rates is focused at banks to stop them parking the cash overnight with a central bank. They have options, find another central bank that will take it for free, pay the fees to park it at their central bank or invest it in something that earns some money. Given Covid there is little worth doing that with at the moment so the bank will pay local fees. They will then look to see if they can get money back from lenders to cover their costs. So we may see a little of "you must pay for a current account" nonsense until the Great British public tells them to "go away".
This will have no affect on P2P which is just about shot anyway. It will join in with the like of paypal and ant developing new banking type facilities and our national banks being less worthy to invest in than they are at the moment.
Once Covid goes then this flood of cash could go to the exchequer or towards Green Projects, let's think....
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Post by wiseclerk on Oct 14, 2020 16:14:32 GMT
We have had negative interest rates in Germany for a couple of years now. Banks are hesitent to impose them on accounts for retail customers*, so usually they are exempt to some extent for current accounts, e.g up to 100k.
However that is only for existing accounts. If you open a new account chances are that there are lower thresholds above which negative interest rates (usually -0.5%) are imposed. And for some account types, e.g. low fee brokerage accounts negative interest rates are becoming common (again for new accounts), often charged from the first Euro.
*Instead of imposing them, most tradional banks have hiked monthly and other fees. Fee increases of 50-75% have not been uncommon in the past years. There is very few online banks left that offer a fee-free current account (used to be much more choice years ago).
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Post by martin44 on Oct 14, 2020 21:19:38 GMT
Japan is seen than no more than a safe economy because of its eco stimulus credentials... it is a crapped out economy, you 2 can discuss as long as you like, USA tech is the way forward..
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registerme
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Post by registerme on Oct 14, 2020 22:39:45 GMT
you 2 can discuss as long as you like, USA tech is the way forward.. Bull excrement martin44 For starters there is an awful lot of Japanese tech in and around that USA tech. No Japanese tech = no USA tech. The yanks with their brash bolshy style may be good at branding and box shifting, but the Japanese are the ones who quietly get the job done in the background. What tech are you talking about? Google != ASML != Sony / Sharp / Fujitsu etc
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Post by Deleted on Oct 15, 2020 8:19:44 GMT
I agree, that the dominant money holder in UK is different culturally is not a really, in my mind, an issue. Equally for "matress" read "house" which is where UK people store their money waiting for a rainy day that never comes but with some solidity against a constantly falling Pound. (BTW Japanese student for some years with multiple visits under my belt)
But essentially the economics are the same. Negative interest rates are not the solution.
What is interesting is the post-industrial argument. That Japan is still an industrial nation (even if a lot of plants are based in China) while the UK is a customer & service lead economy (just pretend you agree with that for the discussion). Since most people have had limited opportunity to spend and can see a hard-time-coming, meanwhile, anyone who is still paying top notch insurance bills etc is a fool after 6 months of laptop hell. What will stimulate our economy to kick start?
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