INSUBCONTINENT EXCLUSIVE:
The market determined interest rates have gone up, but you as a saver is not benefitting, don't worry banks in the US are also not passing
on the interest rate increase to their existing deposit holders
It seems like more and more service companies take their existing customers for granted.
Morgan Housel a distinguished business, economics
and financial journalist believes the smartest people only know a fraction of what's out there
the subtle nuances of high standards
He writes customers are divinely discontent
sampling of some of the best content I read through the week, with a dash of my own thoughts
compared with Rs 107.58 lakh crore a year earlier, translating into a year-on-year growth of 6.7 per cent, according to provisional figures
from the Reserve Bank of India.
This marks the slowest pace of growth in aggregate deposits of scheduled commercial banks in a fiscal year
Low interest rates offered by bank deposits have resulted in people shifting away from FDs to mutual funds which witnessed significant
inflows in FY18.
Meanwhile, the big US banks are not paying higher deposit rates to existing customers
Interest rates from the very short-term through two-year maturities have surged since the Fed got serious about raising rates
Recently, the three-month yield in the treasury market was about 1.76 per cent and the two-year yield was at 2.37 per cent
The interest rates that banks offer on deposits should in theory be about in line with Treasury yields in a competitive market.
To keep the
funding costs low, the big US banks are paying insultingly low rates on existing deposits
Credit unions and smaller banks might offer higher rates if they feel they need to compete with the big boys for clients and deposits
those rates to their existing clients
Those competitive market places are the brokers
Some brokers are offering CDs (certificate of deposit) from all kinds of banks
For people hunting down higher deposit rates, now is the time to start looking for competitive market places
Unlike the US markets, retail investors in India are not able to take advantage of investing directly in short term debt instruments like
CDs where banks are currently offering higher rates compared to FDs
although the same investors, ifsave through Mutual funds are getting higher rates than bank deposits because MF invests in the CD of these
Housel a well-known business, economics and financial journalist
are as super as the ability to change your mind
lifestyle downgrade or fewer career options; Unshakeable political beliefs that influence investment decisions; Building a reputation on a
These are generation-defining issues whose economic incentive to solve is dwarfed by the harm they cause.
Tell people what they want to hear
and you can be wrong indefinitely without penalty
Every new industry fits this description
Many market trends do, too
The line between bold and reckless is thin
So be careful blindly praising successes or criticizing failures, as they often made similar decisions with slightly different levels of
If you say the world is going to hell but still invest in stocks, the latter is probably a more genuine feeling.
Key takeaway from Jeff
Read moreAmazon CEO Jeff Bezos recently released his latest annual shareholder letter which provides rich detail around the CEO's
management principle and long-term thinking
This year's letter focuses on the idea of setting high standards and highlights some elements:
High standards are teachable and
The opposite is also true
If low standards prevail, those too will quickly spread.One can accelerate that rate of learning by articulating a few core principles of
mean the same person will have high standards in another.
Achieving high standards requires recognizing what those standards look like in a
To achieve high standards yourself or as part of a team, you need to form and proactively communicate realistic beliefs about how hard
By setting high standards, companies are able to live up to ever-rising customer expectations
Building a culture of high standards is well worth the effort, and there are many benefits
going to slow down any time soon
Customers are divinely discontent
The cycle of improvement is happening at a faster rate than ever before
will ship or be available for pick-up, and more
You cannot rest on your laurels in this world
