This does not justify or make right the fact that the state is paying its bond holders a huge multiple of what is is paying its most vulnerable and least financially literate depositors.
Agreed. And I see no issue with that. Mortgage holders shouldn't be cosseted at the expense of small depositors. It is inequitable to treat small depositors badly simply because they are financially illiterate or vulnerable or can't avail of an alternative.Yes and No. The rate the government is paying bondholders does not put any pressure on banks to raise deposit rates, as people are not going to (or can't) transfer their savings from banks to bonds. An increase in State Savings may well have some impact and would likely precipitate a corresponding rise in bank deposit rates. And more pressure on mortgage rates.
In other words the pillar banks plus Raisin, BUNQ, Advanzia and Lightyear etc
I was hoping that "there are alternatives the median Irish consumer is too lazy or too disengaged in their own finances to do something about it" amount to a bit more than this.
I wasn't asking for anything other than clarification of what the previous dot ridden post was alluding to. I hoped that it was something other than this jaded list. Sadly not.
Is this any help?Can you list the alternatives, or are we just talking Raisin, BUNQ, Advanzia and Lightyear etc ?
Thanks but having waded through that list of "69 offers from 60 banks in 19 countries" there is precisely 1 (one) offer that this available in Ireland, J&T Bank (Czech) which is also available through Raisin.Is this any help?
Deposit interest overview for European banks: thebanks.eu/compare-banking-products/time-deposit-accounts
I didn't ask for anyone to go door to door. I simply wanted to be clear if your vague assertion that "there are alternatives the median Irish consumer is too lazy or too disengaged in their own finances to do something about it" concealed some hidden knowledge or was just a lazy sideswipe. I'm clear on that now, thanks.Listen how many options do you want/need for a commodity activity like a savings account…..it’s like asking for different variety’s of white sugar….there are higher deposit products available….people aren’t bothered so far in pursuing them. That’s on them….what you looking for someone to go door to door signing people up.
I'm clear on that now, thanks.
See David Mc Williams article."Irish banks are at it again,cheating savers out of there own money"Irish Times'one day ago.Interesting,methinks.!Spanish banks have also been strongly warned by the economics ministers to be fair instead of greedy and to pass on interest rate rises to savers as has been the normal over the years.[my humble contribution]
See David Mc Williams article."Irish banks are at it again,cheating savers out of there own money"Irish Times'one day ago.Interesting,methinks.!
How can he say that while State Savings returns are also dismal! Clearly doing something on that front would open up the competitive environment a bit.The Minister for Finance is also quoted today saying that banks should treat savers fairly. Also some articles are questioning if the CBI should intervene.
The Minister for Finance doesn’t need to wait for NTMA to act, nor does he need to apply pressure to NTMA and wait to see if it makes a difference. He has the power to direct NTMA to act. As usual he is trying to play both sides of the game.The Minister for Finance is also quoted today saying that banks should treat savers fairly. Also some articles are questioning if the CBI should intervene.
Will this pressure make any difference? Will AIB/BoI/PTSB/NTMA act?
The Minister for Finance is also quoted today saying that banks should treat savers fairly. Also some articles are questioning if the CBI should intervene.
Irish banks have also come in for criticism for not passing on all of the rate rises to savers deposit accounts. Asked if the government could do anything to force the banks to pass on those rates, McGrath said it can’t.
McGrath said that as Minister for Finance, he cannot intervene in the commercial decisions of the banks when it comes to the rates paid on savings accounts.
“From the government’s point of view, we expect both borrowers and savers to be treated fairly when it comes to interest rates,” he said.
Does the Irish state need more investment in savings certs?
I doubt it.
Brendan
The optics are appalling. It's disengenuous of anyone in government to criticise bank behaviour, when they too are cashing in at depositors expense.Does the Irish state need more investment in savings certs?
I doubt it.
Brendan
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