Interest Rates

Intuitively, many people know that if interest rates are low is not the time to spare, and if interest rates are high is not the time to invest (at least borrowing). Therefore, people are always outstanding read the newspaper, listen to the news on television and listen to renowned economists to know your views on the future of interest rates. I'll give you a tip that was given to me in the Master of Finance, this tip is not a theory that behaves 100% accurate in practice but it does in a lot of the time. Turn on the TV or buying the newspaper and see ads for banks. If you see excessive ads promoting bank loans with fixed interest rates, then surely interest rates will go lower or keep down. On the other hand, if you see excessive bank ads promoting fixed-term savings, then surely interest rates will go up or are going to remain high. What is the reason this?, fijate: Suppose interest rates on deposits (savings) are at 8%, and banks estimate that will rise to 10%, then they will promote fixed-term savings at a rate of approximately 9%.

With this, to raise rates to 10%, there are a lot of customers with their savings "tied" to 9%. That is, we are charging less to customers to keep their savings. This differential of 10% – 9% = 1%, banks earn it with that strategy. On the other hand, if the interest rates on loans (credits) are at 20% and banks consider going down to 18%, then they promoted term loans and fixed rates approximate 19%. Then, when rates fall to 18% will be a lot of customers with their claims "tied" to 19%, ie, customers will pay more dearly for your credit worthiness.

That difference, of course, they earn the banks. Felix J. MS A. Gonzalez website: gorreo

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