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jojo | Banking querey? |
If you have a substanstial amount of money to put into a bank lets say 3-5 million can you negioate a preferential interest rate or must all banks follow the same rate? will banks negiotiate their interest rate if you have enough money. |
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gvih2g2
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Most banks will try to negotiate for deals of a million pounds and up, but it depends what you're after. On Foreign Exchange deals they move quite a long way, whereas in interest-bearing accounts there's a lot less room for manouevre because it's pretty competitive. They're already providing you with a rate that's pretty close to the maximum they can and still make a profit - but obviously it's worth shopping around.
You could put the money on term deposit (eg for 3 months at a time, re-invested at the end of the 3 months unless you say otherwise). Doing this, you'll probably be offered a standard rate called LIBID (London Interbank Bid Rate), which is the rate at which banks take deposits from one another, and which doesn't vary based on amount (but will be different for different lengths of investment, and from one period to the next). You won't beat that by shopping around, it's the best there is - you might get a better rate for a short period and a small amount, but for serious trading in the millions, that's the rate.
LIBOR 3M GBP is currently just over 5% (5.045% according to UBS).
But of course you probably shouldn't be looking to keep large amounts of cash in simple interest-bearing assets for too long. You want to get that money working harder for you by spreading some of it into property, shares, or other investments. |
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Hibee
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This amount would be more at home in the money markets, than in a bank. |
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KingRichard
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they most definitely will.... |
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D
 |
I am sure you can negociate, but not sure if the big banks will, the smaller ones may, however your 5million is a drop in the ocean to what they have, so I doubt they will be too desperate for your cash. From recollection the FSA underwrites a total of £40,000 placed in any UK regulated bank in event of colapse, so your first 40,000 is as safe as houses, the rest if all in one account is at risk, so spread the risk a little perhaps, use more than 1 bank, and maybe go for shares, bonds, property.....
or go shopping!!! |
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Tom W
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There is one way to negotiate interest rates: a service called 'Zopa' allows you to lend money to other people. It is essentially a chance to play the role of a bank yourself. You lend money to those who want to borrow it and depending on their credit score, decide what interest to charge in agreement with the borrower. There is, therefore, an element of negotiation. It's a clever idea and one worth looking into, but of course as with all investments it carries a risk. |
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nai
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you can negotiate rates, you would be allocated a personal account manager who would do this on your behalf. |
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Shirl
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No u cannot negotiate with them over their interest rates. Best thing to do is shop around. |
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sarayu
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The difference will not be much among banks. Investments also will have to be a longer period. Investments in this area will have to be there for safety of the capital to some extent. But atleast 50% of the money also will have to be invested elsewhere with higher returns with securities and equities duly recognising the risks involved.
VR |
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sugerglaze28
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can i Borrow 500,000. since you got all that money to bank |
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the_human_target
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Banks will not negotiate interest rates, but should be willing to work with you on specialized money-market rates depending on the amount of money that you'll be keeping in a cash-type investment. Definitely talk to the bank about how to properly handle that much money as the FDIC only insures single accounts up to $100,000, so it's possible that you would need to split the money across acounts... |
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G!
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Banks are free to set their own rates in accordance with the banking code, and they don't have to all have the same.
If you have that much money, might I suggest you look for banks that offer "Private Banking Services" which is for people with a lot more money to get a lot better things. They have a more competitive rate of interest. |
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Canary Yellow
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Have you won the Lottery?! Hmph, I wanna win!!! |
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