Negative interest rates? Really? Well, the theory is that if you have to pay the bank to look after your money, you’ll spend it instead. The reality is that most of us won’t notice the difference and feel we’re paying the banks already. And that most of those who have savings aren’t likely to blow them on new trainers, meals out (remember those) and fancy tech to boost consumer spending. What’s happened in other countries is that the money’s moved to smaller banks willing to take a hit, still pay interest and attract new customers. So, basically, it’s a load of economists’ twoddle. I’d say.
“The true impact of inflation on cash savings and pensions”
Leaving your money in the bank or building society has always meant that its ‘real value’ after inflation will go down. Although rates go up to, supposedly, control inflation, any chart you look at will show that, apart from a few very short-term blips (N Lamont, I’m looking at you) they are never more than inflation.