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What Would You Do With Your Savings If Negative Interest Rates On Bank Savings Were Introduced?

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Janet Yellen said recently that negative interest rates are an option in the future. At the moment these have not been applied to customer deposits (in the UK or the USA at least) but it is looking increasingly likely that this tactic will be used at somepoint. There might also be a drive to ban cash, tax it or limit the amount that can be taken out of a bank account at one time (under the false premise that this will stop illegal activity/terrorism). The point being that banks will be able to charge you money for storing your wealth with them and the Government hopes this would encourage people to spend their money than keep it in the bank, promoting economic activity. It would also mean that it would be much harder to maintain anonymity/privacy in relation to how you spend your own money.

A possible solution is putting some of it into cryptocurrency, Bitcoin for example, or to move it to stocks/shares or invest in property. However, those that are not technological savvy (for example the elderly) might not be able to do this (invest in cryptocurrencies). So other than hiding cash under a mattress, how would you deal with negative interest rates if you want to save your money rather than being forced to spend it?

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PMs plus cash in a safety deposit box.

That's IF I can locate a suitable service locally and IF the bank actually will give me the entire amount in physical cash as opposed to offering to do a transfer to an account with another bank (I have long suspected that there is no way the bank would ever pony up the entire amount of my savings in physical cash and I don't look forward to having to find out......).

Of course, despite all the publicity that the Hatton Garden heist got in the media, the biggest danger to your money in a safety deposit facility is the 'authorities': http://www.dailymail.co.uk/home/moslive/article-1222777/The-raid-rocked-Met-Why-gun-drugs-op-6-717-safety-deposit-boxes-cost-taxpayer-fortune.html

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Pay as you go/earn as you go.......guaranteed income annuities or similar will become all the rage again......final salary dead and buried.

Other than that buy stuff you can easily store that will always have a instant resale value......

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Don't want to be banned, but my imagination suggests I could be very unstable around any landlord seeking the rent, in such a situation. (Mods: Only imagination).

Cash vs tongues.

The days went on. He sat on a hill once, and saw a slave running through the fields beneath, through the strange slow patterns that the currents in the wind pushed through the golden-red pelt of the land. The slave's path left a trail like the wake behind a ship. She got as far as the river, where the land-lord's mounted overseer ran her down. He watched the over-seer beat the woman - saw the long stick rise and fall, tiny in the distance - but he couldn't hear anything because the wind was in the wrong direction. When the woman finally lay still on the river bank, the overseer got down off his mount and knelt near her head; he saw something flash, but could not tell exactly what was going on. The overseer rode off; hobbled slaves came and took the woman away, later.

That evening, after dinner in the house of the old couple, once the wife had gone to bed, he told the old man what he had seen. The man nodded slowly, chewing on a mildly narcotic root, and spat juice into the fire. The overseer was known to be strict, the old man said; he took the tongue of any slave who tried to escape. He kept the tongues drying on a string stretched over the entrance to the slaves' compound at the lordship's farm.

[...]He left a couple of days later and was never heard of again, even though the lord's marshal sent word to every town in the land, because the stranger was suspected of being involved in what happened the night he left, when the overseer at the lord's farm was found trussed in his bed, his face fixed in an expression of darkest horror, and his mouth and throat stuffed with dried human tongues on which he had choked to death.

-Use of Weapons

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Not if. When.

Cash will be good. Neg rates unlikely to be on normal deposits.

Otherwise, see what assets are in uptrend and follow.

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normal people would draw money out of the banks and put under bed in metal box and lot more people would be paying with cash.

dont know what rich people would do. buy something expensive that does not go down in value?

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Not if. When.

Cash will be good. Neg rates unlikely to be on normal deposits.

Otherwise, see what assets are in uptrend and follow.

Exactly.

It's just what the BTLers and doubters and HPI+++ers want to hear.

I'm not really concerned about it. If anyone should be nervous it's the owner-side and HPI heads, and BTLers.

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Negative rates will of course be fantastic for HPC. See my sig.

Amazing posters above can't stand the idea.

NIRP is an implicit tax on savings income, unlikely to garner support on these pages.

If accompanied by massive QE and another raft of mortgage subsidies? Anything but fantatstic for HPC - at least in the short term.

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Change to another currency.

I suspect that if negative interest rates will eventually affect all currencies except perhaps basket case currencies that nobody wants.

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In truth I would laugh my rocks off.

I have a tracker mortgage 0.17% above base. The thought of the banks having to pay me would put a smile on my face a yard wide.

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Oops. Sorry pipllman. Didn't see that thread! I'm guessing this is on the mind of a lot of people, especially after Janet Yellen's comment.

No harm in having another thread a month later. My reason for the link was not a criticism but an attempt to bring forward some of the previous answers.

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1. Ban cash "cashless society".

2. Neg Rates

3. You are stuffed

4. Bitcoin

5. Leave country.

Having said that, I really can't see them succeeding in introducing a cashless society however much they'd like to.

Edited by Bruce Banner

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