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Why some banks pay 0.5% and another one pay 5% on deposits ?

Why some banks pay 0.5% and another one pay 5% on deposits ?

Hi a banks advert on QL indicates a super savings account attracting 5% interest whilst many other banks pay very low, some as low as 0.05% Why such a disparity ? No central bank guidelines on low/high rate spread ?
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Thu, 18/09/2008 - 6:31am
HH's picture
HH
 

I doubt this is the case in Qatar only. Normally you'll get better interest for term deposits. Also, nowadays there are lots of banks offering "light" bank accounts. This means you don't get many normal features such as ATM access, Cheque book, but you get higher interest.
However, it's normal that everyday transaction account pays next to nothing in interest.
Answered on Thu, 18/09/2008 - 8:02am
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tallg
 

Banks can offer whatever interest rate the want, just as you can choose whichever you want (assuming you meet certain criteria). Different accounts will have different pros and cons, of which the interest rate is one.
Answered on Thu, 18/09/2008 - 8:13am
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proposers
 

It's very normal in many other countries to have a benchmark rate from the central bank and banks are allowed to add/substract a spread on it. That's not as big as this! Could be due to no restrictions some banks pay very high to accumulate the funds they want and other banks could be flooded with free funds, they do not need depos !
Answered on Thu, 18/09/2008 - 9:02am
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aak
 

Qatar Central Bank has very strict guidelines on the lending and deposit rates like any other central bank. These are every month reviewed and action taken to adjust as and when needed.

Bottomline is banks will give more interest to ppl who keep their money money with them for more time. Current account holders can withdraw anytime, hence the lowest rate. Different banks will have different rates becaused of the different cost of funds to them. If they get the money expensive, they lend expensive.
Answered on Thu, 18/09/2008 - 9:13am
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proposers
 

Pls dont take it wrong friends; just debating: One bank offers 0.5% for a fixed depo of QR.20000/- for 1/2/3 months whilst another bank pays 5% for the same amount, same tenure. This has no comparison, hence my question...
Answered on Thu, 18/09/2008 - 11:47am
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