Letter | It’s highway robbery
Starting possibly a year or two before President Obama took office all national banks reduced the rate of interest on savings deposits to 0.01% per year. During the next few years, there were two massive increases to 0.02% and then 0.03% per year! And everyone who puts money in savings accounts knows the last increase (0.03%) is still prevalent.
In short, for the last dozen years, all banks nationwide have enjoyed those nearly free loans from their account holders. Some people may think that the money is piled up at the bank. Most of us know that that money was earning an interest rate near 5% for the loans given for homes and businesses. Pay 0.03% and make 5%. Simply get several hundred times return on the account holders’ money!
Can we classify the above money-making highway robbery?
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