Negative Interest Rates A Good Idea ?

[youngmafbog]

It is certainly an interesting idea put forward by Tucker (Could turn out to be an unfortunate name if he gets it wrong too!)

But would it work? Without doubt the Banks would pass on fees and pay minimal rates to savers.

Already those that save are penalized by the system (not just the Banks) on many fronts. This would be the final nail in my opinion and just reinforces the fact that being feckless is the best option in this country now, saving is pointless.

[youngmafbog]

http://www.bbc.co.uk/news/business-21589128

[DangerUXD]

Savings rates going negative is a natural progression when cutting interest rates, I believe at certain times Japan for example has had lending rates of 0 and savings negative.

[Old_Geezer]

Ha ! No one would bother to save with the institutions. It'd be cheaper to put your cash under the mattress. Maybe the aim is to get folk spending instead, but if no one saves, no one invests, how keen will banks be just to lend from their own coffers for no profit ? If one wishes to hire money one should pay a decent rate for the privilege, and we haven't seen a decent rate for many years.

[Peter Pedant]

terrible idea - I am on a fixed income (pension)

[FredPuli43]

For decades, Swiss banks happily received millions from depositors but charged them interest on the sum deposited. I can't think why.Can you?