Lawmaker Wants Banks to Pay Interest on All Accounts

**Altis6453** · October 25th, 2006 05:34 PM

Originally Posted by niky

Ah... but if you want more interest, you can always go for a time-deposit or a bond.

No one forces anyone to put money in the bank. Consider the interest that the bank doesn't pay you as a "silent fee" for them securing your money for whatever duration you leave it in there for.

Consider. You keep your money at home, it depreciates. It can be stolen, or you might have to use it.

You keep the money in the bank, and they issue you a passbook, give you call-in inquiry services, bill-paying services, checking services, a passbook and electronic recording of your savings.

Do they charge you for all of this (oh, yeah, they do charge for ATM withdrawals and such, but everything else...)? Nope... so... if banks have to pay you interest for securing your money for you, how are they going to make money?

Yep. That's really the smarter way to go. Not time deposits ha, but short or long-term high yield bonds, T-Bills (although interest is low, its still higher than what you get in a bank), or if you want incremental yields, go for mutual funds.

**BlueBimmer** · October 25th, 2006 05:37 PM

gawin 2 or 3% siguro pwede na hehe

**bajumbo** · October 26th, 2006 09:15 AM

I guess low interest on deposits is one reason a lot of people would rather buy stuff than save...

Sabi ng nanay ko dati raw ung "mag impok sa bangko" smart idea pero today raw.... pag ginawa mo un ung bangko na lang ung kikita... kasi may funds na sila para ipa hiram sa loaners. dati raw kahit limang piso lang sa bangko manghihinayang iwithdraw at close account kasi kikita pa rin un... Ngaun kahit pa P50k parang walang sense itago sa bangko sa liit ng interest... buti pa raw ipagawa na lang ng bahay or ibili ng lupa sa malayong lugar...

**tsupermario** · October 26th, 2006 09:21 AM

Originally Posted by niky

so... if banks have to pay you interest for securing your money for you, how are they going to make money?

foreclosure sales?

**zeagle** · October 26th, 2006 09:24 AM

Why are they after the banks now? Is it because they want to earn more from their sevral accounts stashed in names of dummy people? What they should do is put a stop to our government's usery ways. We tax paying businessmen are charged 25%-50% in penalties plus 25%-50% in interests if you are delayed in paying your corporate taxes for even just a day. I don't mind paying penalty and interest charges but that is way too much. Gatasan na lang talaga mga negosyante. I just don't know if the same charges apply to individual tax payers.

**Mguy** · October 26th, 2006 09:30 AM

Well, problem sa banks kasi ay mahal ang operating costs.

Majority ng savings account ngayon ay usually payroll accounts na dinedeposit sabay withdraw the next day. So, kokonti lang talaga ang ma-u-utilize nila sa pera na ito.

So if you maintain a deposit na 500 pesos and the banks pays thousands of pesos for the communication fees for just one ATM, saan sila kumikita? Babawi na lang sila sa loans, foreign exchange, remittances etc.

But definitely, bank would like all of their products to make money rather have one bleeding the profits from another.