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Guest absolutezero

Negative Interest Rates?

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Guest absolutezero

With these rumours of negative interest rates as a move to make you spend your money rather than pay the bank for holding it....

Would it be worth emptying my ISA paying 2.5% (at the moment but let's say they start charging rather than paying) and shove the cash into NS&I index linking certificates (RPI +1% over 3 years).

Both are tax free but I'd feel narked as I've got 10 years' worth of ISA savings built up and taking them out would mean I'd have to start all over again.

In short, I don't trust them not to make us empty our accounts and the question is other than gold, where to put the money if they even try this....

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Guest absolutezero
If you are really worried about it, why not take out a fixed rate isa?

I'm not exactly worried as such. Just wondering. If push came to shove I'd draw it out and stick it under the mattress!

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In short, I don't trust them not to make us empty our accounts and the question is other than gold, where to put the money if they even try this....

I am already in the PMs, but I am also looking at the classic car market for something which will retain it's value, bearing in mind that it has to be insured, maintained and stored somewhere.

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Guest absolutezero
I am already in the PMs, but I am also looking at the classic car market for something which will retain it's value, bearing in mind that it has to be insured, maintained and stored somewhere.

And you also need to know what you're talking about.

As a famous antiques dealer once said:

"I made £100,000 in a morning"

"How?"

"30 years' experience."

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I am already in the PMs, but I am also looking at the classic car market for something which will retain it's value, bearing in mind that it has to be insured, maintained and stored somewhere.

Lets say we are in deflation and prices are falling by lets say 2% and the cash ISA pays just 1% you are making money or wealth.

Lets say we are in high price inflation 12% and your ISA pays 10% it may look good on paper but the first line is best.

The rate on my return in cash dosnt matter if prices are rising at a lower rate.

The classic car comments is an investment choice to speculate in an asset class and like any asset class prices will rise and fall and any type of investments is a personal choice.

Regarding the ISA its a personal view but placing all your eggs in one basket carries its own risk and if you have a lot of asset type of investments and little cash it may be worth staying put if you are happy with cash.

Assuming you want to improve your returns hence higher risk you can transfare your cash ISA into a stock ISA but once this is done you cant reverse it after this you can buy a corporate bond fund which should pay about 6% in good investment grade bonds or a higher rate in high risk bonds.

At low interest rates I would consider this type of investment highish risk and I dont know too much about this area but you may consider looking into it.

The negative interest side wont apply to ISA and to be honest they cant go much lower I think the main consideration would be cash or some kind of higher risk asset investment.

my views anyway

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And you also need to know what you're talking about.

As a famous antiques dealer once said:

"I made £100,000 in a morning"

"How?"

"30 years' experience."

You're 100% right. If you're swapping cash for an asset you got to know what you are doing. The top end of the classic car market has continued to appreciate very well and even the more ordinary stuff has been holding up very well. I recall the late 1980's when MK, Jags and Jensen Interceptors were commanding 35K+ a piece and then by the time of the recession had done its work the prices in the classic car market had collapsed and the 2 above types of car were worth 15K or less.

Instead of gold and silver, how about Doctor Who collectables from the 1960s?

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Interest rates on savings accounts won't go negative imo, people would just withdraw their cash. The methods to stop this is short dating bank notes... I can't see that happening, we're not Zimbabwe (yet).

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