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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: 1) by caffeinated bacon on Thursday July 28 2016, @02:20AM
If everyone is saving and nobody is spending. What kind of idiot do you need to be to borrow money from a bank and invest? You will just lose all your money. Better to wait until the economy recovers and spending picks up. Oops, it never will because people will just save more and more. Now that deflation has also kicked in and things are getting cheaper. Why buy something today when next month is will be cheaper? So people spend even less and save even more, and there is even less incentive to invest. Since all the businesses are now less profitable due to decreased spending, how many workers will be getting pink slips? Now there is even less spending, and also less reason to invest. This will not end well...