NEGATIVE INTEREST RATES: CONCERN OVER CHARGE FOR BUSINESS DEPOSITS
August 5 2016.



In an already uncertain time, the possibility of NatWest charging for deposits in a climate of negative interest rates will be a worrying sign for micro-businesses with small margins and limited options in terms of how they use their capital, experts have said.


Howard Graham, CEO of start-up specialist Made Simple Group says, ‘Lenders are clearly taking precautions in the event of interest rates turning negative, but the strategy could backfire if businesses begin to vote with their feet and abandon the traditional loyalty, so common among business customers, in search of free banking.

‘That said, if rates do turn negative, it is conceivable that all of the big banks will eventually go down this route. In a seemingly never-ending climate of very low interest rates, they are struggling to make money and this could be the way that banking goes.’


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