Hmmm, yes, this was the first thing i heard on the news at 6.30 this morning. Did I hear it right? Yes I did
The latest government/banking plan, is to impose negative interest rates
And yes, that does really mean that if you put £100 in a savings account, then one year later, they will give you back £98, !
So, the lender pays the bank £2 for looking after their money
The good news is, this refers to banks, not to the general public like you and me
The bigger picture is, the UK Banks store most of their cash with the Bank of England, on which the B of E pays them interest.
This new idea is to discourage them from doing this, and instead, to lend it to you and me, for mortgages etc.
The bad news is, the 2% they have to pay, to have their money stored, will be paid for by us, in higher interest rates and lower savings rates
Trainer Talk
Finished our action packed 2-day catch up yesterday with some great test results.
Today I will be preparing for next weeks Front Line Manager Technical Programme
Thought for the day
Knowledge
is knowing a tomato is a fruit. Wisdom is not putting it in a fruit salad
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