Monday, 15 August 2016

Interest rates are low, what can savers do to obtain higher income?

IN an environment of low interest rates, what can savers do to obtain higher income apart from enduring the drop in deposit rates? While in Australia, deposit rates have been raised by a higher percentage than the rate cut by the Reserve Bank of Australia, the reverse is happening in Britain where deposit rates have been lowered by a higher percentage than the rate cut by the Bank of England.

In Malaysia, it’s been said that the cut in fixed-deposit rate for the individual bank has exceeded that of the lending rate.

Whether it is a large or small quantum, any drop in deposit rates will affect savers’ income, especially those who place the bulk of their savings in banks.

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