by Jim Sinclair, Silver Doctors:
From Jim Sinclair, JSMineset:
Get ready, get set, then get bailed in to, so on top of insult comes injury.
It is a logical possibility you might end up owing money for the privilege of keeping any money in the bank.
This is the second significant bank to give this notice. What do you need? Twenty of them to make the same announcement? I would suggest a jog, not walk, to any bank you have money in and try to take out any meaningful amount of cash.
You are in for a surprise. Better to be first in line and the squeaky wheel, not last and begging. Gold and silver will maintain buying power in your hand. Cash is for transactions.
Have you been listening to my weekly exchange with Bill on the premium side? We have been focusing directly on this situation.
Jim and Bill.
Savers fear negative interest rates as Natwest warns businesses might have to pay to hold cash
Tim Wallace and Katie Morley
25 JULY 2016 * 9:48PM
Natwest has become the first bank to warn business customers it may charge them negative interest rates on money held in current accounts.
In what is believed to be a UK first, the bank has signalled its intention to force account holders to either pay to hold money or move funds elsewhere.
Although current plans for negative rates are restricted to business customers, fears are mounting that “pay to save” rates could soon become a reality for millions of consumers, if other banks follow suit.
The outgoing pensions minister, Ros Altmann, warned negative interest rates on current and savings accounts pose a threat to the financial security of older savers, who often rely on their savings to provide a retirement income.
A number of high street banks including HSBC, The Post Office and First Direct are already offering savings accounts with rates as low as zero, as this newspaper reported last week.
A move to negative interest rates would turn a key part of banking on its head, with banks effectively paid to store people’s money, while savers are penalised for keeping money in their accounts.
However this could become a reality if Mark Carney, the Governor of the Bank of England, cuts Bank rate to 0.25pc in August after seven years of it being held at 0.5pc.
Bank rate strongly influences the level of interest banks and building societies choose to pass on to their customers, although some banks offer significantly more or less.
Natwest blamed the potential decision on ultra-low interest rates imposed by the Bank of England, which it said were putting huge pressures on its finances.
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