19
Italy approves 40% windfall tax on banks (www.reuters.com)
submitted 3 years ago* (last edited 3 years ago) by to c/personalfinancecanada@lemmy.ca
4 comments fedilink hide all child comments
 

Italy dealt a surprise blow to its banks and sent shockwaves across the sector in Europe by setting a one-off 40% tax on profits reaped from higher interest rates, after reprimanding lenders for failing to reward deposits.

you are viewing a single comment's thread
view the rest of the comments
[–] 1 point 3 years ago (1 child)

@mxwarp I mean, what incentives do these banks have to pay higher interest? They own like >80% of the market and their name recognition alone draws deposits.

Keep in mind that paying higher interest rates is a way to attract deposits, when your name recognition & size can already do that for you, why pay more?

As a consumer, people need to consider shopping around. Far too many Canadians believe there's no choice when in fact there is.

For higher paying options, see: https://highinterestsavings.ca/chart

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] [S] 1 point 3 years ago* (1 child)

    Looks like they finally got the memo!

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 2 points 3 years ago

    @mxwarp This is just a promo rate, all the Big Banks & their subsidiaries do this. They boost the rate for 3-4 months and then you earn their base crappy rate thereafter.

    Scotiabank, Tangerine, Simplii & etc. have been doing this for years.

    The options in the link I provided previously are non-promo rates.

    Other options incl. fintechs like WealthSimple offer 4.5% if you have $100k deposited or invested with them, or via money market funds or investment savings account which all pay >4%.

  • permalink
  • fedilink
  • source
  • parent