Singapore banks interest hit all time low

[Alamaking]

It's fucking pathetic!! 2 years $10k fixed deposit only get $60?
WTF man!!:oIo::oIo::oIo:

 

[elephanto]

said but true... 30cent for every $100, 0.3% per annum
you notice NOT much interest in your thread about bank interest ?
so many have resigned themselves to this sad fact ....

 

[jimmyfallon]

Factor in CPI and you know you are getting a good screw.

 

[Ash007]

Factor in CPI and you know you are getting a good screw.

Put in AUD lah, 4.5% now, I see my money grow every month over here.

 

[johnny333]

Put in AUD lah, 4.5% now, I see my money grow every month over here.

No need to go to Australia. Some banks like Citibank are offering local accounts of foreign currency which give higher interest rates.

 

[Sperminator]

Apparently this may be a desperate measure to excite the market with influx of money into the market.

Rationale;

When interest rates are high, it encourages the depositors to put in more money in Fix Deposits, etc... and in return, the cost of borrowing is higher for people who borrow from banks. Mortgage rates increases accordingly.

High interest rates is a trend of good market performance (in my own opinion)

When interest rates are low, close to 0 P.A., this will encourage depositors to withdraw their bank deposits from Fix Deposits (perhaps some may even choose to forfeit their interest rates, since it's a bad return, or negative return if you factor CPI, or inflation factor into it)

With more money in the people's hand, hopefully they are looking for other investment opportunities that give them a better return than close to 0 P.A.

At the same time, the cost of borrowing would be lower at this point of time. Paradoxically, during times like this, no body dares to borrow money.

This seems like a monetary policy enacted.

 

[Char_Azn]

Put Money into Bank fixed deposit = lose money to inflation

They should make it a law against any bank that offers interest lower then inflation rate

 

[Baimi]

Buy Blue chip share with good dividends,
and still can offset your income tax.

 

[jw5]

I've noticed that banks these days are doing things differently from last time:
1. They're open for business on Sundays and after normal office hours.
2. They're giving lots of benefits for childrens' and even babies' savings accounts.
3. They're having more promotions for savings accounts instead of promotions for fixed deposits.

The first point is definitely better for the customers, as it gives them more flexibility.
For points 2 and 3, I'm not sure if it's better for the customers but it's certainly better for the banks. They are trying to tie down customers to their banks and not just the customers but also their families including the young ones. These promotions are temporary, but once you open an account with them, it's unlikely that you will switch to another bank. In the past, they would give promotions on fixed deposits, and customers would simply switch banks wherever they can get a better interest rate.

 

[elephanto]

Aussie ACU deposits interest around 4+ % ! Above all other Foreign currencies...

What's the catch ? any possiblility of deep exchange loss if move the intrepid S$ FDs into A$ ? Like the way the euro has plunged ?

 

[Subok]

That is really bad! Would it better if place in unit trust?

 

[Alamaking]

I've noticed that banks these days are doing things differently from last time:
1. They're open for business on Sundays and after normal office hours.
2. They're giving lots of benefits for childrens' and even babies' savings accounts.
3. They're having more promotions for savings accounts instead of promotions for fixed deposits.

The first point is definitely better for the customers, as it gives them more flexibility.
For points 2 and 3, I'm not sure if it's better for the customers but it's certainly better for the banks. They are trying to tie down customers to their banks and not just the customers but also their families including the young ones. These promotions are temporary, but once you open an account with them, it's unlikely that you will switch to another bank. In the past, they would give promotions on fixed deposits, and customers would simply switch banks wherever they can get a better interest rate.

Wah, i thought i'm the only 1 noticed it, LOL

 

[captainxerox]

saving interests rate low. loan interest rate also low. good for those who dare to invest in property now. but once interest rate go up, some would also cannot afford pay mortgage and uplorry

 

[johnny333]

but once interest rate go up, some would also cannot afford pay mortgage and uplorry

Many already can't afford the high prices of housing.