Lowering of interest rates of deposits only escalates bank profits – by Sunil Thenabadu in Brisbane The motive of the government decision to lower the interest rates of deposits was predominantly to engross the banks to lend at lower interest rates for entrepreneurs to boost the economy of the country which is in dire straits. However, would this proposal prove productive? Obviously not so practically or on paper.as at date if statistics are searched in relation to the benefit reaped by the entrepreneurs a much larger percentage of depositors have been deprived of receiving a sizeable interest component. The Fixed Deposit interest rates have been drastically reduced from around 11% per annum to alarmingly lower rate of just 4 % which  has caused a financial distress for the depositors most are retirees who had invested their life long savings and gratuity money at retirement. With the escalating cost of living, with the ...

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