Bank Rates Down Again

Just checked my savings accounts and realised that bank rates have dropped yet again. POSB's My Savings Account used to have interest rates of 0.45% - 1.5% p.a. Effective 2nd March, the rates were dropped to 0.4% - 0.6%!. Regular savings accounts that used to yield 0.25% now yield only 0.125%, half of the previous rate. SGD fixed deposit rates are now between 0.175% and 0.7%. With these rates, we might as well keep our cash in Milo tins under our beds.

It's bad enough that the rates were already so low, now they've lowered it even more. It also seems that it's back to business for their loans departments because I've started to hear complaints from my friends about banks calling them up to sell them loans and credit cards again (something that almost completely stopped happening since December). Looks like Singapore's banks are flush with cash after everyone went into power save mode when the economy tanked and they're looking to make that cash go out and do some work.

The bad news isn't over yet, though. I'm still hearing news of lay-offs and reduced work weeks. It's gonna be a long while before it's business as usual again.

Rates of all POSB/DBS deposit accounts here.