The common
has lifetime plans. Common man earns salary – ever thinking of that annual pay
hike, only to be outdone by some reasons and the ever increasing prices –
struggling to strike a balance. The savings would be meagre – but some would
rush to bank for placing a small FD and earn interest. He dreams that with the
interest the deposits would double in a span of time – and as he ages, he would
have reasonable funds in his name. The
Branch Manager and Officials would be ever busy attending to people who take
loans and not caring enough for this ordinary mortal placing a Fixed deposit. There could be mistakes [even in the Name] in
the Receipt given, getting TDS could be a task, it could even get credited to
wrong account – and one has to pay Income tax on this interest income.
You are
looking at a 56-storey, 259 m (850 ft) skyscraper in the Innenstadt district of
Frankfurt, Germany. Anantenna spire with a signal light on top gives the tower
a total height of 300.1 m (985 ft). It is the tallest building in Frankfurt,
the tallest building in Germany and the second tallest building in the European
Union. It is called Commerce towers –
that of Commerzbank AG, a global banking and financial services company founded
in 1870 with its headquarters in Frankfurt Germany. Commerzbank is Germany's
second-largest bank, holding a nationwide network of branch offices, numerous
offshore branch offices and representations in more than 50 countries globally.
The Commerzbank Tower (designed by British architect Norman Foster) was
Europe's first ecological skyscraper too.
Not a great
news for the Investors though it may not affect the common man …….. instead of earning
interest on money left with the ECB, banks are charged by the central bank to
park their cash with it. The ECB recently had
cut its deposit rate to -0.1% with the hope is that this will encourage the banks
to stop hoarding money, and instead lend more to each other, to consumers, and
to businesses, in turn boosting the broader economy. In theory it sounds attractive but it has
never been attempted by the eurozone and could have unpredictable and
unintended consequences.
~ and is
that way of punishing savers and rewarding borrowers ? - it is reported that Germany's Commerzbank
is to charge big corporate clients fees if they hold substantial deposits at
the bank. Commerzbank is the first major bank to make such a move and says it
will encourage big clients to move cash into alternative investments. Ast of
now, Private savers and small and medium sized businesses will not be affected
by the policy.
In June the
European Central Bank (ECB) said that banks would have to pay to park money at
the central bank. That negative interest rate was an effort to spur banks and
other financial institutions to lend money rather than leave it on deposit. In
September it made holding money at the ECB even less attractive by cutting the
rate on overnight deposits to minus 0.2%.
Commerzbank's
has become the first private bank to mirror that move. "We reserve the
right to charge some large corporates a fee on parked liquidity"
Commerzbank said in a statement.
Hopefully
Indian Finance Minister is not reading such news…. !!
With regards
– S. Sampathkumar
21st
Nov. 2014.