Paying for saving

Get straight to the good stuff every day with the Multiply Minute; a lightning-quick round-up of the money news and how it affects you.

Would you pay for savings?

The Bank of England has suggested that it may set interest rates below zero. The Bank sets a base rate, which indirectly impacts the interest that people earn on savings they keep in the bank, as well as charges on any loans they may have. While negative rates would be good news for people looking to borrow money, those looking to grow their money through savings may end up paying their bank to hold their money.

Unlocking Shopping

The government has given a range of non-essential shops the go ahead to reopen from 15th June. This will include fashion stores, car dealerships and a range of other retail outlets. Hairdressers and hospitality venues will remain closed for now. Shops will have to adhere to a set of guidelines that limit the risk of infection, and will face spot checks to make sure that they do so.

Slowdown slowing down?

The Bank of England’s chief economist has indicated that there are signs to be optimistic about the UK economy*. The impact of coronavirus has led to people spending less, which causes the economy to shrink. Whilst the overall outlook is still gloomy, there are signs that people’s attitudes are recovering.

Rental property firesale

Many AirBnB hosts are reportedly planning to sell off their properties as Coronavirus has led to a significant loss of income. Hosts have seen almost all bookings cancelled, and many are facing ongoing mortgage and utility costs which they are struggling to meet. AirBnB itself has been considerably hit by the pandemic, forcing it to reduce its workforce by 25% and hold off plans to float on the stock market this year.

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