• Rachael Panteney

Negative Interest Rates - What does that mean for Savers?

There a has been a lot of talk in the press recently about the possibility of negative interest rates.

If you are a saver, what does this mean to you?

As of todays date, the Bank of England Base rate is at it’s historic low of 0.1%

If the rate moves into a negative figure, then commercial banks will need to pay the Bank of England to hold the cash reserves with them.

In effect, instead of being paid interest, they will have to pay it out.

If this happens it is likely the banks will in turn pass this onto the retail market – that is you and I.

The prospect of negative rates will come as a further blow to UK savers, who have already has years of low interest rates, and could soon see their savings eroded even further.

While High Street banks pay everyday savers under 1% already, (figures taken from Money Supermarket) these changes, actually penalising savers for holding their money would be unprecedented.

So why would a central bank impose negative rates? The theory is that if savers are charged to save money, they will spend rather than save. In turn, encouraging more economic activity and growth.

In practice, it’s not at all clear that this is what happens. Indeed, some argue that negative rates have the opposite effect. For example, rather than spend money, savers might just save even harder to compensate.

Whatever the Bank of England decides to do with central bank rates, you should always shop around for the best possible home for your savings.

You should also consider why you save – if it is for a specific goal it is important to not lose sight of that.



I cannot stress this enough. In these troubled times emergency savings are absolutely essential.

Remember, we are here to help so please get in touch if you want to talk.

Contact us or call Rachael on 01323 436680 and book a FREE initial consultation today.

Willow Tree Financial Services.

A6 Chaucer Business Park,

Dittons Road, Polegate.

East Sussex, UK.

BN26 6QH

01323 436680


The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested. Your home may be repossessed if you do not keep up repayments on your mortgage. 

The Financial Conduct Authority does not regulate Will Writing & Estate Planning.

Willow Tree Financial Services is a trading style of Rachael Panteney, an appointed representative of Quilter Financial Services Limited and Quilter Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority.

The information and content within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

Privacy Policy

© 2020 by Willow Tree Financial Services. Proudly created by AMME.

Image Disclaimer: All images shown are for illustration purposes only and are not pictures of actual clients.

For reliable financial advice that is accessible to everyone; from mortgages to pensions, and everything in between.


We pride ourselves on our friendly and professional service and use our extensive market knowledge and experience to deliver a client-first approach, as standard.

Clicking the links below will depart you from the regulatory site of Willow Tree Financial Services. Neither Willow Tree Financial Services nor Quilter is responsible for the accuracy of the information contained within the linked site.

  • Facebook - White Circle
  • Instagram - White Circle