interest rates

[Sgt.Rock]

If the Bank of England base rate drops to 0% would the high street banks and building societies pay 0% interest on savings accounts?

[Ethel]

No. Banks will still need your money, so will offer some interest to entice you to keep your money with them

[Sgt.Rock]

Thanks Ethel, so something like .5 to 1% then?

Fizzbook looks just what we are looking for, thanks for that yesterday.

[Ethel]

More than that, I expect. :)

Glad the Fizzbook looks okay for you

[R1Geezer]

When lending rates where 0 in Japan, saving rates where negative. This is what would happen here. put 100 in the bank and come back in a year it'll be �98. No point in saving so spend spend spend, that's how the Japs stimulated their economy.

[Ethel]

It didn't work though - Japan's interest rate was around 0% between 2000 and 2005 and the economy is still struggling.

[buildersmate]

A situation when keeping the money under the mattress would make financial sense.