LOLC reduces interest rate on fixed term deposits....

wolfcreek · Post by **wolfcreek** » Tue Jul 21, 2020 6:12 pm

It was 8.5 % (for 36 month deposits) until a few days ago. Now it has been reduced to 8%. Are any other MFIs reducing interest rates??

samrong01 · Post by **samrong01** » Tue Jul 21, 2020 6:54 pm

Yes, Prasac has reduced their top monthly rate to 7% from 7.75% and 6 month rate from 6% to 5.5%.

truffledog · Post by **truffledog** » Tue Jul 21, 2020 7:05 pm

please remember: given the nice interest rates of those banks for fixed term deposits you are taking quite a bit of risk of loosing it all. Risk and return are highly correlated.

wolfcreek · Post by **wolfcreek** » Wed Sep 02, 2020 3:47 pm

And LOLC has just announced that their highest rate of return is now only 7.5%

Kammekor · Post by **Kammekor** » Wed Sep 02, 2020 4:25 pm

truffledog wrote: ↑Tue Jul 21, 2020 7:05 pm please remember: given the nice interest rates of those banks for fixed term deposits you are taking quite a bit of risk of loosing it all. Risk and return are highly correlated.

Not really, the risk went up over the last months while the interest rates dropped....... :stir:

truffledog · Post by **truffledog** » Wed Sep 02, 2020 4:47 pm

there are many other factors also to be considered. Generally this principle is one of the pillars of economics and applies to most investment decisions. Any fixed term deposit that generates 8% interest rate is to be considered high risk at the moment (with a "safe" investment paying near zero at the moment).

Kammekor · Post by **Kammekor** » Wed Sep 02, 2020 5:03 pm

truffledog wrote: ↑Wed Sep 02, 2020 4:47 pm there are many other factors also to be considered. Generally this principle is one of the pillars of economics and applies to most investment decisions. Any fixed term deposit that generates 8% interest rate is to be considered high risk at the moment (with a "safe" investment paying near zero at the moment).

I don't disagree with the general principles we thought were true, but we're in a 'new normal' now with lockdowns, state supported economies, negative interest rates and interest rates in Cambodia dropping when the risks increase.

Just saying the world seems to be going crazy.

truffledog · Post by **truffledog** » Wed Sep 02, 2020 5:06 pm

Kammekor wrote: ↑Wed Sep 02, 2020 5:03 pm
truffledog wrote: ↑Wed Sep 02, 2020 4:47 pm there are many other factors also to be considered. Generally this principle is one of the pillars of economics and applies to most investment decisions. Any fixed term deposit that generates 8% interest rate is to be considered high risk at the moment (with a "safe" investment paying near zero at the moment).
I don't disagree with the general principles we thought were true, but we're in a 'new normal' now with lockdowns, state supported economies, negative interest rates and interest rates in Cambodia dropping when the risks increase.

Just saying the world seems to be going crazy.

all is based on right or wrong assumptions of a future development (pos or neg) and we all know that wrong assumptions are the mother of many if not all fuckups.

atst · Post by **atst** » Wed Sep 02, 2020 5:53 pm

You could put your money under your mattress but that to could disappear

LOLC reduces interest rate on fixed term deposits....

LOLC reduces interest rate on fixed term deposits....

Re: LOLC reduces interest rate on fixed term deposits....

Re: LOLC reduces interest rate on fixed term deposits....

Re: LOLC reduces interest rate on fixed term deposits....

Re: LOLC reduces interest rate on fixed term deposits....

Re: LOLC reduces interest rate on fixed term deposits....

Re: LOLC reduces interest rate on fixed term deposits....

Re: LOLC reduces interest rate on fixed term deposits....

Re: LOLC reduces interest rate on fixed term deposits....

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