The pathetic interest earned of a bank deposit

[Alexandoy]

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.

 

[eldavis]

Well it's no news that the interest gotten from banks are extremely small this is why people are adviced that if you want to become rich, do not rely on savings alone. The money you save in your bank account will to bring back any meaningful returns, the best thing to do is make an investment.

 

[Caramelle]

Well, the central bank will probably not be able to do something about the low interests rates on savings deposits as it has also mandated the reduction in the interest rates that credit cards can charge. When you save money in savings accounts or time deposits, it's like entrusting the money to the bank's safekeeping for free. Some banks have even lowered their interests rates to .10% per annum. Yeah, it's pathetic, that's why these accounts are not really fit for smart investing. Still, time deposit accounts that earn above-average interests if kept for a longer period deserve some consideration.​