Cash, what to do with it come negative interest rates?

Jerry

Member
Mixed Farmer
Location
Devon
invest in building business - either your oen or others


certainly going to be interesting when this (inevitably) happens

Thus is one option I am continually looking at. I’m lucky in that we have a diversified business already but still think we need to do more.
 

Tubbylew

Member
Location
Herefordshire
Help your kids on to the property ladder, if they are going to uni buy a student flat , renting out spare room will help with mortgage ,
There will be huge effort needed for youngsters to get started by themselves with covid to pay for

Link from another thread,
May not be as simple as it ought to be.
 

Jerry

Member
Mixed Farmer
Location
Devon
Have you a share dealing account.
Plenty make money in times of crisis?
Apparently???

Yes. And in a past life I did this a bit, but it needs time, loads of time, to do the research and watch the markets.

Volatility is your friend but at the moment it’s just too volatile to play the games unless you have the time to do it properly.
 

GeorgeK

Member
Location
Leicestershire
The impact of negative interest rates might not be that huge, the aim is to encourage banks to lend more, not to penalise savers and businesses, so they will come with rules to ensure most accounts don't see negative rates (besides, in real terms most bank account interest rates are already negative as they are below inflation). However, no one will get paid to borrow money as banks will still charge fees.
Negative rates seem to be used because central banks are desperate and have run out of options, not because they work really well
 

shakerator

Member
Location
LINCS
I get the feeling this is going to be a more and more likely scenario......

So what to do with cash?

Various pots to think about!

1: Cash in the business
2: Cash in personal accounts
3: Cash in pension pots nearing maturity (ie in the next 2 or 3 years)

Borrowings are minimal in business and personal accounts, most of which is on near zero interest rates.

Various values against all pots but they add up to.....
I get the feeling this is going to be a more and more likely scenario......

So what to do with cash?

Various pots to think about!

1: Cash in the business
2: Cash in personal accounts
3: Cash in pension pots nearing maturity (ie in the next 2 or 3 years)

Borrowings are minimal in business and personal accounts, most of which is on near zero interest rates.

Various values against all pots but they add up to.....

One is already losing anyway through understated inflation

inflation metrics have been changed for political purposes- if the same methods weee used as were 30 years ago the CPI would currently be 9%
So 0% interest , 9% inflation is a full loss - formalising it with a negative rate may appear painful , but in reality the effect is marginal if say a 1% annualised levy on deposits became reality
 

Sid

Member
Livestock Farmer
Location
South Molton
Screenshot_20201022-072817_Samsung Internet.jpg

Should have bought Genus shares!
 

hoff135

Member
Location
scotland
Stick it under the mattress and say nothing - always the best way. God only knows the outcome after this mess. Other than that Buy to Let new build.
How long will we have that option though?

Surely this is the perfect time to ban cash in the name of "public health"

 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 79 42.0%
  • Up to 25%

    Votes: 66 35.1%
  • 25-50%

    Votes: 30 16.0%
  • 50-75%

    Votes: 3 1.6%
  • 75-100%

    Votes: 3 1.6%
  • 100% I’ve had enough of farming!

    Votes: 7 3.7%

Red Tractor drops launch of green farming scheme amid anger from farmers

  • 1,291
  • 1
As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
Top