Interest Rates of Banks and Finance Companies

In the recent months, interest rates of Banks and Finance Companies in Singapore have been trending downwards.

Here are two reports from Straits Times and AsiaOne:

1) March 24, 2008
Singapore interest rates likely to fall further Fed cut and robust Sing$ could push interbank lending rate below 1%
By Nicholas Fang
SINGAPOREANS can expect cheaper mortgages but lower savings and fixed deposit rates in the months to come.
Read the article: http://www.straitstimes.com/Free/Story/STIStory_219818.html

2) Mon, Mar 10, 2008
The Business Times
Inflation erodes away bank savings Banks cut fixed deposit rates; but cautious investors stay liquid in face of market volatility. (SINGAPORE) Cash-rich Singaporeans averse to risky alternatives are in an unhappy spot of having their savings eroded by inflation.
Read the article: http://www.asiaone.com/Business/News/My%2BMoney/Story/A1Story20080317-54776.html

Here are the stats I got from www.mas.gov.sg and plotted on a chart.

Table and chart of Interest Rates of Banks and Finance Companies for past 26 months.

Also, here is the chart for 25-year historical trend.

Table and chart of Interest Rates of Banks and Finance Companies for past 25 years.

So, what's feasible to do now:-
a) If you have a mortgage loan beyond the lock-in penalty period, re-finance the mortgage loan;

b) If you are kind of "dunno whether market will go up, down or crazy", drip money into an equity-based portfolio; See Drip in new money-1 & Drip in new money-2 .

c) If you just want something better than F.D, then lock in the minimum rate with TMAsialife's NestEgg. See chart below:
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