That means that rouble deposits earn far more than dollar ones, which should make the currency more attractive.
Japanese households sit on ¥1,500 trillion of assets, half of which is buried in bank deposits earning scant interest.
The Japanese are notorious savers; of the $15 trillion in household financial assets, slightly more than half is tucked away in bank deposits earning almost no interest.
The temptation to buy stocks or property or spend on consumer goods — retail sales were up 17percentt in September from a year earlier — has increased as bank deposits earn regulated interest rates as low as half the inflation rate.
From the perspective of depositors, the choice is obvious: keep your money in the bank, where one-year deposits earn just 3.3%, or get a higher rate, even double that, with Yu'E Bao.
Thus the government suppressed funding costs and bankers got to live the 3-6-3 lifestyle: pay 3% on deposits, earn 6% on loans, and leave the office in time to tee off at 3 in the afternoon.
Mr. Garnier argues that the idea would offer German savers a better return than parking their surplus cash in domestic bank deposits earning zero nominal interest, and would be politically more palatable for Germans than risky taxpayer loans to governments that might never be able to repay the debt.
Increasing the country's key lending rate would ensure deposits earn more than what is lost to inflation, and to re-attract foreign capital.
Justice Stevens said in his opinion today that while the money the two men had on deposit earned a few dollars for the fund -- $4.96 in one instance and an unspecified smaller amount in the other -- neither man would have earned any interest through an individual account.
You deposit earned income into the account.
