The interest rates on deposits and savings accounts are moving in a downward trend due to various financial and economic reasons. If the trend continues, the day may not be too far, for banks and financial institutions to start charging their customers for safe-keeping the money in these accounts, instead of paying the interest, as they incur expenditure to handle the accounts like manpower, space, printing various documents related to these accounts, etc.
We need not be surprised, if financial institutions and banks do this in the future by adopting a negative interest rate policy!
However, it may become a deterrent for senior citizens, who solely depend on interest earned on their deposits for their living. In the current situation, such people may need to start looking for other means of earning using their skills and knowledge gained during their career.
– Dr. S.V.N. Vijayendra, Roopanagar, 10.5.2020
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