Am I missing Something here?

[Bahco]

Interest rates given to you by the banks are at an all time low i.e around 1 -2 % if you are lucky yet inflation is running at 4 % .

In effect you are losing money by keeping it in the bank!

Why is this happening as I really don't understand market forces for this anomaly.

Why?????

 

[joinerjohn]

The banks are blatantly ripping off customers. Probably all to do with paying bonuses to the plebs that lost millions in the first place, causing the government to step in with taxpayers money. RBS being the typical example. The posted yet another loss and still pay out bonuses to their workforce. I can't understand this mentality at all. I certainly can't understand why the government now don't step in and stop these bonuses from being paid. After all, according to the press, this bank is about 70-80 odd % owned by the government.

 

[geraint]

Interest rates given to you by the banks are at an all time low i.e around 1 -2 % if you are lucky yet inflation is running at 4 % .

In effect you are losing money by keeping it in the bank!

Why is this happening as I really don't understand market forces for this anomaly.

Why?????

the interest rate might be set by the country.... but they are not borrowing from the country

the market interest rate is far higher

as a comparison...

you get no comission on your euros or dollars... cheap...

 

[joe-90]

They could only tell them what to do BEFORE they bailed them out.

Ie - "If we bail you out will you pay silly bonuses? Yes? Well go bust then".

Now they can just take their operations overseas to somewhere like Switzerland. So we lost our clout.

All Gordon Brown's fault (as usual).

 

[1john]

We opened a bank account for our son and we were 'awarded' a high interest savings account with a whopping 0.5%. I told him that his sentance didn't make any sense to me but the guy just looked at me blank!