By: PanzerGrenadier Time deposit rates have moved downwards along with Domestic Interbank rates Interest rates for savings and fixed deposits (time deposits) have reduced sharply since Oct 2007 as can be seen in the Monetary Authority of Singapore data on domestic interbank rates since Jan 2007 to Jan 2008. It has moved downwards from the dizzying heights of 3% sometime in Feb 2007 and creeped steadily downwards towards the present 1.50% plus. If you noticed, interest rates for many banks and financial institutions fixed deposits have also moved in tandem. This is because the bank borrows from you (the depositor) and lends to other banks at the rates. If they can lend at 1.5%, then to make any meaningful margin, their cost of borrowing has to be lower than 1.5%, which explains why time deposit rates have moved downwards as well. What can you do about it? Read more...