Interest rate

[Banana Bar]

US dropped their rate by .5% and Canada have done the same. When do BOE next meet, will ours drop? My guess is yes.

BB

 

[teslacoils]

Yes. Although probably only a quarter point at first.

 

[Steevo]

Agreed, I'd expect it to drop by quarter point to 0.5%

 

[thewalrus]

I wonder how many decades it will take to see interest rate rise to even 5%

 

[teslacoils]

I wonder how many decades it will take to see interest rate rise to even 5%

I think we will be following the Japanese route of interest rates / productivity etc for a good while now.

 

[Pilatus]

Excuse me asking what range of interest rates are banks roughly charging for “arranged” ongoing business overdrafts.
Is 10% high ? Thankyou

 

[John Slejpner]

Excuse me asking what range of interest rates are banks roughly charging for “arranged” ongoing business overdrafts.
Is 10% high ? Thankyou

You are kidding right ???
Seriously...i cant recall off the top of my head...but something like 1.75% over base rings a bell + 1% annual charge of max figure agreed.

 

[britt]

You are kidding right ???
Seriously...i cant recall off the top of my head...but something like 1.75% over base rings a bell + 1% annual charge of max figure agreed.

That used to be the case when the base rate was higher. I think you will find it's much more now. The banks have been making their own rules since it dropped in 2008.

 

[Pilatus]

Excuse me asking what range of interest rates are banks roughly charging for ongoing business ongoing overdrafts.
Is 10% high ?

You are kidding right ???
Seriously...i cant recall off the top of my head...but something like 1.75% over base rings a bell + 1% annual charge of max figure agreed.

Many thanks, I will be on to our bank this afternoon.

 

[milkloss]

Excuse me asking what range of interest rates are banks roughly charging for “arranged” ongoing business overdrafts.
Is 10% high ? Thankyou

that is high but I expect you’ll be lucky to see better than 8%

 

[John Slejpner]

I wonder how many decades it will take to see interest rate rise to even 5%

More than 3 if the current yield on 30 year Treasuries / Bonds is to be believed.

If is symptomatic our situation that the only logic to holding long dated bonds is that yields could go even lower.
No wonder gold is on the move.

 

[John Slejpner]

Excuse me asking what range of interest rates are banks roughly charging for ongoing business ongoing overdrafts.
Is 10% high ?

Many thanks, I will be on to our bank this afternoon.

Good luck but be careful.

Our ongoing business ongoing overdraft might also include a mortgage and a comfortable amount of tangible asset.
While we could go insolvent we probably cant go bankrupt (and it would be End of Days scenario if we did )

Our O/D is heavily used in part of the year and usually for 10 + months of the year it is in use to some extent. We are paying £1000 per 100k for the right.

I can imagine a scenario, which might be you, where NOT paying such an arrangement fee but paying much higher interest makes absolute sense.
But 10% interest even with no fee would not pencil out the way we use our O/D.

 

[Northeastfarmer]

How can you drop interest rates when they are already fudge all...you’ll have to start paying the bank to look after your money before long

 

[ISCO]

Excuse me asking what range of interest rates are banks roughly charging for ongoing business ongoing overdrafts.
Is 10% high ?

Many thanks, I will be on to our bank this afternoon.

We pay 3.57 over base but secured.

 

[jendan]

Good luck but be careful.

Our ongoing business ongoing overdraft might also include a mortgage and a comfortable amount of tangible asset.
While we could go insolvent we probably cant go bankrupt (and it would be End of Days scenario if we did )

Our O/D is heavily used in part of the year and usually for 10 + months of the year it is in use to some extent. We are paying £1000 per 100k for the right.

I can imagine a scenario, which might be you, where NOT paying such an arrangement fee but paying much higher interest makes absolute sense.
But 10% interest even with no fee would not pencil out the way we use our O/D.

The banks will argue that insolvency is being bankrupt.Gone are the days when you thought you were safe when your assets always exceeded your liabilities by a decent amount.In any case it will never be allowed to be more than about 65% loan(all loans including overdraft,farm mortgage, hp, etc.) to value.If you run out of cash,and the bank will not support you anymore,you will be bust! Then you will have to sell assets,and probably will only have a 90 day time frame in which to do it.Once land agents and "consultants" know you are in trouble,you will become a target to get ripped off at every opportunity.

 

[jendan]

How can you drop interest rates when they are already fudge all...you’ll have to start paying the bank to look after your money before long

There are plenty of interest rates paying a negative yield,believe it or not.Big big funds actually paying governments to hold their money.

 

[SilliamWhale]

I wonder how many decades it will take to see interest rate rise to even 5%

The world has changed. Banks are no longer the place to grow your money.

 

[Still Farming]

HSBC and others shoving arranged overdrafts fee's up to nearly 40% next week???

 

[SilliamWhale]

You are kidding right ???
Seriously...i cant recall off the top of my head...but something like 1.75% over base rings a bell + 1% annual charge of max figure agreed.

Mine is 2.8% over base this year and last year was 2.6% over. Very quietly they have been pushing it up over the past few years. Definitely used to be in the ones. If it gets to 3% next year I think it will be time to ask around again.

 

[Andrew K]

Mine is 2.8% over base this year and last year was 2.6% over. Very quietly they have been pushing it up over the past few years. Definitely used to be in the ones. If it gets to 3% next year I think it will be time to ask around again.

Which bank is that please Will?