For all the years between 2010 and 2019, banks triumphed against inflation, while unsuspecting depositors were vanquished. “Instead of using money market funds to aggregate and buy bills, they (depositors) keep placing money in deposits,” said the financial expert. However, not even in the worst of times, have banks seen their interest rate wiped out by inflation. They gave depositors a scrawny interest of 1.56 per cent, leaving them with a -6.45 per cent in interest. For example, with the current CBR rate at seven per cent, banks were expected to give 4.9 per cent on deposits.

Source: Standard Digital May 05, 2020 08:48 UTC