Alexandoy
VIP Contributor
I have been scouting for an investment package and one is the time deposit in the bank. In a concept my 100,000 can earn 1,000 in one year as a bank deposit. That is so little. But if the interest rate is 5% then my 100,000 can earn 5,000 in a year which is quite acceptable. But lo and behold, I was shocked to see that the interest rate for time deposit in the bank for 1 year is less than 1% which means my 100,000 will earn less than 1,000. That is pathetic because that interest could not even buy me a decent meal in a week.
If your bank can give you an interest rate of 5% or more then I'd say that is a good bargain which you can hold against inflation. After 1 year in the bank your money's worth will be lesser and the interest is your weapon to uphold the value of your deposited money. At present I have crossed out the bank deposit for my investment option because the interest is very little that I feel insulted with the way banks are treating their depositors. I hope the central bank will take a move on this issue of very small interest rate.
If your bank can give you an interest rate of 5% or more then I'd say that is a good bargain which you can hold against inflation. After 1 year in the bank your money's worth will be lesser and the interest is your weapon to uphold the value of your deposited money. At present I have crossed out the bank deposit for my investment option because the interest is very little that I feel insulted with the way banks are treating their depositors. I hope the central bank will take a move on this issue of very small interest rate.