With the economy slowing down are we headed towards zero interest rates. Are we going the same way as Japan, Denmark,Sweden,Switzerland and the Euro Zone. All these places have negative interest rates.
To me we are already there. I get no interest on my saving account.
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It matters if you safe and inflation eats your savings.
Maybe there is no point in saving and spend what you have if any.
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Spending new money will protect it from inflation but there is another important factor. Everyone needs a rainy day reserve. Over the past few months I have read pundits advising equivalents of from three months' expenditure to two years' gross income.
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We have a Halifax instant access saver for our very modest savings/rainy day fund. It currently pays 0.9% AER, but on renewal later this month it is going down to 0.6% AER.
So - I'm looking for a new home for our ££££ where there is instant access, no limit on money in or out, either by number or amount and which is slightly more generous.
I've found a Grenouille bank, RCI Bank which offers a good rate (1.55%% AER) for this type of account but (a) It's owned by Renault (!) and (b) does not have UK protection, but relies on the French scheme. Hmmm.
Next, oddly enough, is National Savings, which pays 1.1% AER with no restrictions, on an instant access account.
The latter pays interest gross, so returns to the HMRC is necessary unless, it seems, if I wait until after April 6th. when the interest on modest amounts of loot is tax free.
Any other ideas? (Without changing our primary bank account - rules out Santander)
Last edited by: Roger. on Sat 5 Mar 16 at 15:06
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Are interest rates going to fall to zero? - Dutchie
