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The RBS banking group has warned 1.3 million customers they could be charged negative interest rates if the Bank of England cuts base rates below zero.
The group, which includes NatWest, wrote to its business and commercial account holders about the potential changes, which mean they could lose money even when they are in credit.
The letter said: "Global interest rates remain at very low levels and in some markets are currently negative.
"Dependent on future market conditions, this could result in us charging on credit balances."
The Bank of England's base rate currently stands at the historically low rate of 0.5%, where it has been for more than seven years - and some economists believe it should be cut further to stimulate the economy.
Source: Sky News
From October 1st, the Dutch bank [ABN Amro] is adjusting its conditions to state that the bank can give negative interest rates to account holders with a business checking or -savings account, ANP reports.
Source: NL Times
(Score: 2) by len_harms on Wednesday July 27 2016, @10:07PM
I like this video on what the market is. Not sure if he is correct on the wave theory he puts forward. He does make a good hypothesis for it though. That would need to be mathmatically proven for it to be less than a theory.
https://www.youtube.com/watch?v=PHe0bXAIuk0 [youtube.com]
The downside is it starts off like a pitch to a pyramid scheme.
In this case storing money is how banks are allowed to by our government and its regulations to create credit. The risk they take on is passed onto you by being the middle man. Meaning they can fractionally loan out your money but you only get a fraction of the loan interest value back however it is very low risk to you. As they are taking on more of the risk than you are. That is the trade off. You to can get about the same interest rates as banks do. However, you need to take on more risk than just dropping in into a bank. They do not work for 'free'.