Increase in Fixed Deposit Rate by POSB

[Traumfanger]

Hi,

http://www.posb.com.sg/personal/deposit/...=xssep6221

Being the largest bank in Singapore, what does this reflect for the overall economy? Does this increase mean any thing?

Kick start the discussion

[pianist]

i dun see any increase

[Traumfanger]

Oh, because it's too low?

[sgd]

only 0.25% pa.

singapura finance offers higher rates

The highest interest rate I've ever seen was 6% for fixed deposit back in the year 2000 I think either by HLF or Singapura Finance.

usually banks increase because they see rates trending higher in the future but rates are still very low, with this new round of QE3 the planet is swimming in money when that happens rates will be low the best thing is to invest.

Right now the bailout money is being used to save banks to shore up their balance sheets but banks are not leading it out because they are afraid so the trillions of $$$$ in bailout money are just growing under our feet and not circulating in the system, but at some point it will start to get out into the system and I predict we will start to see in the news media reports of many BIG US corporate takeovers and acquisition and this may even filter down to the regional and local markets.

[Traumfanger]

Thanks.

Actually, when the USA QE so much money, I don't see why the world would want to value the money of the US. It has taken its currency off the gold standard, and it can keep printing money. It's just illogical to me.

With interest rate low, there should also be some form of encouragement for business to take risk. The tax cut was good, but the latest job data wasn't a good reflection..

Actually, economics, is really not easy to comprehend. I think the factor of human behavior is one of the most variable factor.

[corydorus]

I got this fear in the back of my mind. Will it reach a point where something startled the USD, an overnight it crash to abyss ?

[sgd]

we haven't heard what china and the europeans plan to do they may after a few weeks announce their own stimulus measures in conjunction to the QE3 for added effect.

[thefarside]

Hi,

http://www.posb.com.sg/personal/deposit/...=xssep6221

Being the largest bank in Singapore, what does this reflect for the overall economy? Does this increase mean any thing?

Kick start the discussion 6

Their customers are probably voting with their feet and leaving for other banks offering better rates. So they have to keep up or lose even more deposits. Orbigood, i would say. As for the economy, life goes on.

[Bibi]

Can someone enlighten me why there are so many pp willing to put money in DBS/POSB when their ATM and banking counter queues is so bloody long? I was told POSB guarantee 100% of deposits back then, but now no more right? Is it because the minimum deposit amount is much lesser compared to OCBC or UOB?

[Muck]

Can someone enlighten me why there are so many pp willing to put money in DBS/POSB when their ATM and banking counter queues is so bloody long? I was told POSB guarantee 100% of deposits back then, but now no more right? Is it because the minimum deposit amount is much lesser compared to OCBC or UOB?

My guess... Inertia.