What industry do you work in and what is your role?
What are your responses in your role / position?
Can you describe to the function of your workplace / company?
How many departments, how many offices. National or International?
What are the minimum requirements for employment ie Education or Experience?
How many opportunities are there to ‘move up the ladder’?
What is the process for changing job roles ie Interview? Test?
————————————————– —— ——————————————————General discussion about your workweek:
Current projects? Deadlines? Opportunities?
Anything of interest happening?
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1.
If you’ve looked at your savings account statement recently, you may have noticed a lower interest rate than you were expecting. Perhaps as low as 0.06%. This is not a typo.
2.
To put that into perspective, a rate of 0.06% is 6/100th of 1%. If you had $100,000 in your savings account, you would earn $60 per year in simple interest — so it would take a very long time to earn any meaningful amount of money. That’s not good if savings are a big part of your retirement plans.
Why This Is Happening
3.
To start, digital banks (loosely defined as a bank with few or no physical branches, lower overhead costs, and more of a digital approach to customer service) are making competitive strides against traditional banks, with some digital banks advertising savings account interest rates of 0.50% or more — with some rates nearly 10 times higher than what you might earn at a traditional bank. Right now, few other industries are experiencing price gaps like the ones between traditional and digital banks.
How or why did you choose the bank you work with? Do you use Internet banking services?
4.
Unlike mortgages, where rates have dropped below 3%, deposits made into savings accounts are kept at the bank that opens the account. Banks generally do not sell deposits they do not need. As a result, they adjust interest rates on their deposit accounts and loans to meet their internal goals.
5.
If a bank’s loan portfolio is growing, the bank will need to grow deposits. If loans are growing faster than deposits, a bank can turn to the Federal Reserve to borrow the deficit.
6.
Banks are subject to regulatory rules that stipulate maximum leverage ratios, limiting their ability to borrow indefinitely. This means a bank can see an increase in expenses without the offsetting increase in revenue that a growing loan portfolio generates.
Is a digital bank right for you? Have you ever considered buying shares in a company?What sort of business would you invest in?
Why Digital Banks Offer Higher Interest Rates On Savings Accounts
7.
Today, many large traditional banks have garnered respect from consumers as being stable and safe for storing their hard-earned cash. As a result, they have seen continued growth in deposits. Because of this, they don’t need higher deposit account interest rates to attract customers.
8.
Conversely, digital banks are seeing continued demand for their loan- or fee-based products. In many cases, this demand has outpaced their ability to attract deposits. These banks, unlike traditional banks, have a large appetite to grow deposits. They do so primarily by setting attractive savings account interest rates.
