A major high street bank has paved the way for the introduction of negative interest rates for the first time in Britain by warning customers it may have to charge them to accept deposits.
The warning by NatWest was made in a letter changing the terms and conditions for the bank’s 850,000 business customers, which range from self-employed traders, charities and clubs to big corporations.
It could mean that an account holder with £1,000 in a NatWest account could see that shrink to £999 or less the following year as the bank charges a negative rate of interest.Well, it's obvious. They are not making enough from the charges associated with overdrafts and mortgages (no chance of those interest rates falling anywhere near zero). Nor from their gouging on exchange rates for foreign currency. Besides, they have to keep paying exorbitant remuneration to their top executives.