As global central banks start increasing their money supply to battle falling asset prices, the natural outcome is the fall in interest rates. Money becomes cheaper, reflecting through a collapse of interest rates.

As depositors, we try our best to find the highest interest rate with the ultimate aim of parking our spare funds in accounts that yield more than our liabilities (eg mortgages and balance transfer). Even if we are unable to do so, then the spreads (ie difference between liabilities interest vs deposit interest) should be as narrow as possible. Otherwise, it would make more sense to pay down our liabilities.

CIMB bank has always been one of the best Fixed Deposits in town. Last year, their online promotion was as high as 1.9%. This is even higher than the mortgage I am paying with BOC @ 1.8%.

They have a starsaver paying 0.8% no conditions, Fastsaver paying averaged