Savings are slowly dripping away as deposit interest lags far behind inflation

As inflation tops eight per cent, anyone with money in the bank is seeing their savings drip away at the fastest rate on record because interest rates for savings accounts, still largely languishing at around one per cent, haven’t kept up.

“When there is lower competition between banks, then it takes more time for them to adjust rates on deposit accounts.”“When banks don’t increase rates on deposits they’re making more profits … It’s a very easy way to make profits, to have a low rate on deposit accounts.” Some banks have also started to increase rates, though often via short-term promotions and other restrictions, and it’s not across the board.

Macmillan said that more people moving to alternative lenders could put more pressure on the big players. “So there’s less pressure to increase the deposit rate, unless deposits start reducing dramatically or a competitor raises rates.”

Who wrote this article? A 5 year old? What was the real rate a year ago? And 3 years ago? Math is hard, eh?

Pre inflation worse

Thanks JustinTrudeau

'Savings are slowly dripping away as deposit interest lags far behind inflation' Let us not forget the portfolio losses in the markets since early January, at the same time not as bad as what those who got on PierrePoilievre's shawarma bit coin wagon must be feeling now.🤦‍♀️

Slowly dripping

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Canada's economy stalls as key sectors shrink in May - BNN BloombergCanada’s economic expansion showed signs of moderating in May and June, pulling back from a strong start to the year in the face of high inflation and rising interest rates. It's growing very nicely right now. No chance of a recession in next 5 years. Recession is a mere technical term. Some people's situation will get worse, some better.
Source: BNNBloomberg - 🏆 83. / 50 Read more »