Sunday Business Post – Deposits

This story appeared in the print and online edition of the Sunday Business Post on the 9th of June 2013.

Another banking win is how some heralded the  move by the NTMA to drop their savings rates, in some instances these rates reducing by over 40%. The savings products are distributed on an agency basis by An Post, but was it a decision made due to bank pressure and is there anything a saver can do about it?

To start we need to remember that typical deposit rates in normal nations with healthy banks are generally about one percent or less. Our nation is not typical, our banks are still far from healthy, so we have seen elevated rates for the last five years.

At one point in late 2008 early 2009 you could get over 5% on a one year deposit. And although the banks whine about An Post having state backing and great rates they didn’t do this when their members had the best rates during the financial crisis and only existed due to state support, sauce for …

Read More

Things can only get better

Don’t be too unhappy, because although January was the worst stock market since the January of 1990, the S&P was down by 6.1% and the MSCI world index said goodbye to 7.7% of its value, markets in India and China are down (at one stage India actually had to suspend trading on their market), despite all of these things the good news is that bad times don’t last forever.

Market commentators sometimes remind me of psycho ex-girlfriends who just can’t let go, (if you want to see one of the old Internet comic phenomenons type ‘psycho ex-girlfriend into your search engine) they are the type where by the time they realise whats happened its like the whole world is falling and its never going to get any better, they’ll NEVER love anybody again! Keep the faith.

Around the world the reaction was indeed just that, a reaction, it was reactive to results and not pro-active. The fed held an emergency meeting and slashed 75 basis points off rates and then at a regular meeting they cut another 50 basis points. …

Read More