Banks offering only 1.3% interest rates for Savings Account

[Maricel2017]

It depends in the bank, here in our country (Philippines) the range of interest in savings is .025 to 1.5% mostly the banks offer small amount of interest is commercial bank that is why bank is only hold our money for security and dont look for the income.
For now i prefer to save in bitcoin in short term than putting my money in the bank with long term to get an income.

[buharikx31]

I went to my bank today to change money to foreign currency because I will be traveling abroad soon. I asked the lady what are the current annual interest rates if you decide to give your money to bank for certain period of time without being able to withdraw that money (Savings Account).
She said proudly that zhe interest rate is 1.3% which is the highest in the country. I was holding my laugh and smiled kindly to her and I said that even 1.3% is not enough for me.
What do you guys think? I think 1.3% per year is a joke. Money can lose that much value in one year so you didn't actually profit at all. What kind of interets rates do you get at your banks?

In my country we have like 18% a year annual interest rate, but the on that period when the price of our currency decreased :3 times which means if you have your funds on bank you will get minus 280% and with inflation it's not even profitable hold money like that, better to invest at more volatile stuff

[recycleembarrassM]

They are just doing their job. they too know that its not much but for sake of their job they are saying so that they dont get fired LOL

[Silberman]

I think 1.3% per annum is quite low. In my country, that is also the case. It is a little bit funny because when we save money in the banks, we get low interest, but if we loan money from a bank, the interest rate is huge.

Thats why banking is so profitable.   They are literally lent money at no cost for almost a decade now.   Its part of how politics funds its budgets, basically creating inflation and requiring the banks to buy their government debt and so continue the ongoing system.  This is not capitalism. 

When you consider inflation, also look at headline interest rates.   They have been negative quite often and this is part of why the rates paid by banks is so low.   Banking should not be centralised to the state like this, this was one of the original aims of the communist state for example over a hundred years ago.

Well banking is very profitable for a very simple reason they are basically given money for free and even worse they can create money for free when they lend money they use fractional reserve banking they only keep a small portion of that money just in case people want to reclaim it but they can print as much as 10 times the amount that you deposit with them this is why they hate bitcoin as they will not be able to do the same.

[Sled]

I feel sad for the people who are putting all of their hard earned money in their savings account in the banks for thinking that it will be good because a lot of their friends told him that it is the best place to store money and that is why a lot of people are not improving because they lack of knowledge. I hope that after a few years, people will not always put their money in savings account and learn to invest.

[Silberman]

I feel sad for the people who are putting all of their hard earned money in their savings account in the banks for thinking that it will be good because a lot of their friends told him that it is the best place to store money and that is why a lot of people are not improving because they lack of knowledge. I hope that after a few years, people will not always put their money in savings account and learn to invest.

What happens is that governments make an effort to keep the people ignorant about what they can really do with their money, that is why almost no one saves, and the ones that do it just keep their money in their homes or in their bank accounts not realizing that doing all of that is just a waste of money and time, what they need to do is to invest in something even if I do not like stocks that is way better than to leave your money doing nothing.

[bryant.coleman]

This has been the general trend over the past three decades. In countries such as Japan, they are having negative interest rates. So if you want to keep your money in the bank, you need to give them money. In other countries also, the interest rate is going down with every passing year.

[Lucius]

What is the only truth concerning banks and their existence is to achieve the greatest profits,and that certainly can not be achieved if they allow their clients to benefit in working with banks.So if they give as 1.3% interest rate,user need to invest big money to get something from that-but for some small deposits it is not worth mentioning.At the same time bank will work with our money and make much more profit then 1.3%,so actually we give them our money which they use to make profit,but in the same time they will give us some dust interest at the end.

What would be a fair deal is that client give bank money,they work with that money for the agreed period and then the realized profit is divided in equal proportions,let's say 50-50.But then banks would not be what they are today,and a good deal of people in the world would live much better.

[Nahl]

in my country there was the banks which is give 2-3% for annual interest rates for every year and indeed almost banks all of in the world will never give annual interest rates more than 5% but it's very different if we loan money from bank that we should repay over than 10% for annual rates

[Grayy]

Interests from banks only benefit the extremely rich and oppress the poor. Time value of money would have changed significantly to receive 1.3% interest on your investments. Unless you have so much money to invest  with banks you don't get any good intrest. It is better to let your money grow for you by starting your own business than investing in banks. It's even better to take absolute control of your money if you invest in cryptos than in banks.

[orions.belt19]

It depends in the bank, here in our country (Philippines) the range of interest in savings is .025 to 1.5% mostly the banks offer small amount of interest is commercial bank that is why bank is only hold our money for security and dont look for the income.
For now i prefer to save in bitcoin in short term than putting my money in the bank with long term to get an income.

Banks are not originally made for you to earn income. Banks are made to protect your money and for it be secure. Even if you earn a (small) marginal interest in your savings, you won’t actually earn that much. It’s sort of like an incentive for keeping your money in the account and for not spending or withdrawing it.

[boyknightvn]

I went to my bank today to change money to foreign currency because I will be traveling abroad soon. I asked the lady what are the current annual interest rates if you decide to give your money to bank for certain period of time without being able to withdraw that money (Savings Account).
She said proudly that zhe interest rate is 1.3% which is the highest in the country. I was holding my laugh and smiled kindly to her and I said that even 1.3% is not enough for me.
What do you guys think? I think 1.3% per year is a joke. Money can lose that much value in one year so you didn't actually profit at all. What kind of interets rates do you get at your banks?

That is not a joke, some huge banks in the world (like Japan) they offer 0% interest rates. They do this because of the monetary policy in their country to adjust the deflation rate. It's very difficult to believe but it's the truth

[CryptoMoar]

according to my experience. banks in our country take advantage in various sectors not just in term savings only. indeed the interest rate offered is almost the same as in your country. but the banks in my country offer various levels of interest rates for a varied period of time so that we can choose the interest rate according to the level offered. at most 6 percent per year for term deposits.

[tonylewisverdu]

in the philippines back only offer 1% interest for the whole year.. its too low compared to crypto but like they said high risk high reward, low risk low reward..

[Silberman]

in the philippines back only offer 1% interest for the whole year.. its too low compared to crypto but like they said high risk high reward, low risk low reward..

The problem with banks is that the risk is not low at all banks go to bankruptcy all the time, people think this is not the case because they don't see all the banks disappearing at the same time, but believe me in all over the world there are banks facing bankruptcy every month, and there are many people that lose their money because of it so the risk is not as low as many people think.

[HELLOFF]

in the philippines back only offer 1% interest for the whole year.. its too low compared to crypto but like they said high risk high reward, low risk low reward..

The problem with banks is that the risk is not low at all banks go to bankruptcy all the time, people think this is not the case because they don't see all the banks disappearing at the same time, but believe me in all over the world there are banks facing bankruptcy every month, and there are many people that lose their money because of it so the risk is not as low as many people think.

but nevertheless people on the deposit lie in the bank less than it is proposed to invest in Bitcoin. But nevertheless Bitcoin is already beginning to beat many people by pocket.

[STT]

1% return is not low risk low return, its no return at all.   IF you include inflation in the monetary supply in your profit calculations or just the cost of food rising every year then your 1% return is losing value as inflation is over 1%.

To gain 1% value interest but the money now buy 2% less means you didnt gain anything at all.  Its been this way since 2008 and they launched bank bailouts with larger government debt, all financed by printing more money.
Same goes for wages.   This is why many look for alternatives, normally bank interest would retain the deposits of the majority who earn in conventional business and then save their wages.   If there is no gain people take far greater risks to achieve a return or just not lose money saving for a house or retirement even.  This isnt a one off, its a big trend for a while now

[Sword555]

That would be great if human race efficiency and welfare gets to the new time of golden age.

[Lagrood]

It is a normal percent if you want to get more you should to taker a look at goverment bonds because this assets are without a risk. For more profit you should to take a risk and there are a lot of assets to do.
In developing countries an interest rate may be 10% and even more but inflation and other riks are huge. Smart people from developing countries hold thier savings in major currincies (dollar, euro)

[wack slacker]

Profits from savings deposits are decided by the banks and are adjusted continuously, not fixed. In our country they allow interest rates of 6% a year and not to mention double-digit inflation of about 15%. I think 6% profit vs. 15% inflation is a loss in investment.