27/08/2020
Here’s my take on this. BSP has ordered lower interest rates for banks but is it really bad for consumers like us?
1. NO - the government is preventing recession by encouraging customer spending. This makes sure that more money is circulating. Better for businesses, Better for investors.
2. YES - it is indirectly bad if you’re looking to grow your money. Banks may not be the best vehicle for accumulating long-term passive income. Compounded interest through stocks and bonds will always sprint you towards your goals faster.
CONCLUSION: It is not bad to put most of your money in the bank. It is actually vital to have funds available. But if you’re working towards building a secured future, the interest rates might not be the best.
