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Anonymous

18 Jun 2020

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Will bank interest rates go back up anytime soon?

For example, Standard Charted JumpStart and CIMB FastSaver have both halved their interest rates. Will the interest rates ever “recover”? Should I still consider opening a savings account with either of these banks?

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Ng Wei En

18 Jun 2020

Analyst at Mastercard

The Fed held interest rate near zero and the rate is expected to remain near zero through 2021. This is to stimulate the economy and encourage businesses to borrow.

On the consumer front, you will expect lower interest on savings account and also lower interest on loans that you undertake. This will likely affect Singapore too as the US Federal Reserve rate has a strong correlation with the Singapore Interbank Offered Rate(SIBOR). Banks in Singapore will take reference from the SIBOR to determine interest rates.

Therefore, we'll likely see interest rates to be depressed at least through 2021.

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