Rates rising - why am I not making money on my savings?

For much of the last decade, as interest rates languished at rock bottom, they saw their deposits making a return of next to nothing.

It prompted Central Banks globally to launch a grand experiment of essentially printing cash - known as Quantitative Easing - and dropping interest rates to zero - or lower - to entice people to borrow money. It has since raised rates by a further 1.5% and another increase of at least half a percent is expected when the ECB's policy committee convenes again next month.

That amounts to a not-so-princely sum of €17 in a year on a deposit of €10,000, compared to a euro zone average of €69 on the same capital amount. This comes mainly from the wall of deposits that they're able to make money from by lending out to borrowers, but also by parking some of it with the ECB where they're now once again getting a return.

It left the banks with a lot more deposits than loans. According to figures from the Central Bank, at the end of May this year, total household deposits stood at €144 billion - 30% higher than at the onset of the pandemic. Together with some loosening of the purse strings and increased demand for credit, the banks will inevitably welcome deposits at some point in the future when they'll likely offer greater inducements to get them.If putting cash on deposit, the best return is typically gained by locking the money away for a period of time.

Source: Entertainment Trends (entertainmenttrends.net)

Because they are spending their money on food and bills.

It seems like the banks are a law unto themselves

The bank's are charging people a higher interest rate on money borrowed but the people whose money the banks are lending are not benefiting from the interest rate increases. If it looks like a racket and sounds like a racket it is.....

Same old story in Ireland, ECB rates go low, slow pass onto consumer debts, ECB rates go high slow pass onto consumer savings, look to invest, ETF taxed aggressively, only option is pensions, BTC, gold, Berkshire, or pick random stocks hoping you picked right ones. Fee/tax v high

Maybe because Bankers are Criminals.

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