Where will people save money- A report by Prothomalo

[Kittygalore]

Usually government adjust bank interest to control inflation. I think it will be better if people invest in companies directly rather than go through bank. Some bank lend money for unproductive things which mean it's not help to reduce inflation. But if we invest our money to companies directly then the company will produce more product and help the balance of supply and demand between money and goods. I hope companies can get fund directly from investors rather than lend money from bank. I hope people know how to invest in companies directly.

The average people can't get through the company directly when it comes to investing in them, they need to get through the bank because the company has to pay these people and bank is the best way for this company to put the payments for those investors.

[1714885852]

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[Kong Hey Pakboy]

Reducing an already small interest rate is a bad thing for the people who store their money in those places, that's borderline criminal and now they are wondering why people risk getting into crypto for high returns? They really don't have any concept in regards to how will other people feel about this reduction.

Totally agree, this is evident with how unprofitable it is to have a savings account these days, back then it was around 2 digit interest rates but right now even a 2% is the most generous enough number.

[Fortify]

Interest rates in Bank in Bangladesh is below 5% now. In some Banks, it's 2%. People with extra fund used to invest in sanchaypotro (Savings Certificate) for safe and good return but in recent announcement, interest rate has been decreased to 7.71% if the total invested amount is above 3 million BDT. Isn't it a good rate? I don’t have a clear idea on it. Need to check more.
If it isn’t a good one, where will people invest the amount? Stock market? In recent days, Dhak Stock Exchange and Chattogram Stock Exchange has seen the ATH in index and for most of the stocks. Is it possible that another bull run will be occur in the near future? This is true that when people have less interest rate, they tend to invest in stock or any other opportunity they have. Due to the Covid, there’s not a lot of option available at the moment. Is it worthy to have a look and draw a pattern on Stock Market return vs Interest rates?

The general trend for interest rates paid by banks has been on a downwards trend for a long time now. In my country back in 2015 it was possible to find banks offering saving accounts with a 5% rate on them, now it is difficult to find even 1% being offered. It will lead people to either accepting that inflation will end up eroding their savings at a certain rate or you will have to start investing in certain assets. At the end of the day central banks want people to spend their money to keep the economy going, which is why they have forced rates so low. Everyone should really learn more about finance and whether the risks of investing in places like the stock market are acceptable to them, as it may soon be the only place you can get a decent return.

[el kaka22]

I can't talk about Bangladesh because I am not living there and I have no idea how finances are there. However, the best way to make money as far as I know is gold, that is before crypto became a thing for me of course, if you are not interested in crypto (which majority of the world is still not invested) then gold is by far the best thing you could do.

You start with buying tiny amounts and then you end up with buying a good amount and make a profit from the increasing value of it, when you have enough then you can buy a rundown house and then fix it and then you could either sell it or rent it. With the rent income you could collect it and put your other savings as well and keep on buying small amounts of gold, faster this time until you can buy your second.

Or you could sell the first one, get another run down and repeat that as long as you want. This is what my uncle did for years but with cars, he bought horrible old cars and fixed them up to make them look brand new and work perfectly and sold them for as high as 3x the price.

[palle11]

I think I will be safer keeping my money in cryptocreency right there in my wallet. 
Reasons my money will be safe with me in bitcoin is

1. No inflation fears rather prospect further growth.

2. No third party interference like banks.

3. Freedom to transact anytime I wish.

4. Blockchain transparency.

[Emitdama]

Interest rates in Bank in Bangladesh is below 5% now. In some Banks, it's 2%. People with extra fund used to invest in sanchaypotro (Savings Certificate) for safe and good return but in recent announcement, interest rate has been decreased to 7.71% if the total invested amount is above 3 million BDT. Isn't it a good rate? I don’t have a clear idea on it. Need to check more.
If it isn’t a good one, where will people invest the amount? Stock market? In recent days, Dhak Stock Exchange and Chattogram Stock Exchange has seen the ATH in index and for most of the stocks. Is it possible that another bull run will be occur in the near future? This is true that when people have less interest rate, they tend to invest in stock or any other opportunity they have. Due to the Covid, there’s not a lot of option available at the moment. Is it worthy to have a look and draw a pattern on Stock Market return vs Interest rates?
Source of the news

Banks are a very bad places to be saving money, you’re not going to be getting anything that is good at all from saving money in the bank. Their rates are always the worst ever you’re going to get. I used to make use of some private companies for savings, and some of them would be giving 12% to 13%, but as of recent I noticed that one,out of the two that I was making use of, has reduced their interest rate to 5.5%.

I wasn’t happy when I saw that, so I had to make a decision to start putting my savings money into investment in bitcoin, although I still feel that’s some kind of risk that I’m about to take, or I might not do it.

[wxa7115]

The problem with the inflation figure is that it is an official figure that is best not to trust but to always assume that it is higher, because it is designed so that people are not shocked. In general, it is cherry-picked to suit the governments and it never takes into account asset inflation, which is what usually beats inflation.

If the theoretical official inflation is 5% but houses have risen by 10% and the most representative index of the country by 8%, you can count that real inflation is at least 3% higher than the official figure.

Traditionally, investors have two easy ways to beat inflation, with quality REal Estate and with quality stocks as well, although more recently we have Bitcoin as well.

And this can be easily corroborated on your own, if you buy something you receive a ticket for your purchase, most likely even if you do not keep them on purpose you probably have a few around your house, if you compare the price of the product back then with the price of the product right now you will have an idea of the real inflation during that time.

Obviously this is not perfect but it gives an idea of how high inflation really is where you live and how much higher it is compared to what the government reports.

[The Sceptical Chymist]

RE PoS, it is a completely different game and a 10% for me would be clearly not enough compared with the risk. Either the network is clearly growing or those interest will come from coin printing. If the supply is limited, then the cost of keeping the network safe will be too high and will kill it. Super-risk that should be paid at least a 50% in my view.

I don't know....what about ETH going PoS?  That's a coin without a cap and yet it's currently #2 to bitcoin's #1 status.  And yeah, there are other PoS coins that are super risky but others that have decent potential and sorta-stable prices (like Polkadot and Tezos for example).  Anyway, all of those coins have some value, and you can earn what amounts to interest on them, so you do receive real income by holding them.

The general trend for interest rates paid by banks has been on a downwards trend for a long time now. In my country back in 2015 it was possible to find banks offering saving accounts with a 5% rate on them, now it is difficult to find even 1% being offered.

Yeah, and I remember a time when PayPal was actually paying interest on funds held with them, and it was something like 4%.  That was way back in 2006 or so, and my how times have changed.

[Kittygalore]

It seems that the elite are rattled again with these papers, they're now trying to cover up things so the damage won't spread even further and so they can continue what they're doing, seems that a lot of rich people are being exposed again.