Banks deposits rate has dropped and it seems to be a worldwide move. I came across this ST report that says that banks in Taiwan are turning away big depositors and elsewhere in Britain, interest rates has dropped to its lowest.
The central bank around the world are trying to stimulate the economies, yet the low interest rates for borrowers translate to low interest rates for depositors too. But again, during such bad time, if you borrow money from the bank, got retrenched, unable to pay back the loan, then it got writeoff, which will affect the bank’s overall performance, isn’t it still the same that there is still problem in the financial system?
An expert from Britain was quoted as saying that it will be a year or more before saving rates are likely to rise again. Some are even warning that savers might need to pay banks for service of holding their case (sounds ridiculous).
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