1. It cut the deposit rate it pays on large fixed accounts while concurrently increasing the rates it pays on smaller accounts. 2. The section on variable deposit rates as a potential problem has been moved to an appendix. 3. They also mean that lending rates, due to the higher cost must be higher and deposit rates must be lower than they would be in the Euromarkets. 4. Naturally deposits would be attracted at higher rates than the equivalent domestic deposit rates and demand for lending would increase at lower rates. 5. At the same time, banks are expected to trim their deposit rates, lowering the return on money saved by consumers. 6. At the same time, though, banks are expected to trim their deposit rates, lowering the return on money saved by consumers. 7. Bankers are crying foul because the credit unions use the tax break to offer higher deposit rates and lower loan rates. 8. Banks have maintained their margins by raising the interest rates on loans at a faster pace than they are increasing deposit rates. 9. Birch also disagreed with predictions that overall mortgage lending margins -- the difference between deposit rates and mortgage rates -- will decline this year. 10. A cut in deposit rates would reduce that income. |