These establishments are the main source of lending,borrowing,depositing money. Yet they are a secret society in many ways.Banks in Australia as an example charge you a fee for transferring,and taking out your own money.If you want to borrow money even against a solid guarantee, they will charge you a fee, say $400 to set the loan up,when they all ready have your personal details,on record.
Profits of these banks are staggering there are four main banks in Australia. Westpac,Nab,Anz,Commonwealth.All return profits after tax of $5 billion,annually.
Money... When you borrow money say $10,000,at 5% I assume the Bank "Borrows" that money at 2.5%, from where I would like to know. So why can the bank put up the interest rate say to 5.5% at notice when and where they like,knowing their borrowing is still at 2.5%.
Recent revelations in the UK have found that Barclay's Bank have been manipulating the bank rate,for their own personal gain.These false bank rates have flowed on not only to other banks in the UK but Banks in other countries. Consequently, theses false rates trickle down,making money more expensive to borrow and increase's the Mortgage.
So who can and will fix this? in the UK the bank of England is the countries regulator,each country has there own regulators, are they going to fix this unlawful act or is it too big to fix or are they involved at some level too.
The big Banks have the consumer's where they want them,..That is for now,..The World wide Recession is not over with yet,wait about ten more months and you should get a really low interest rate on a personal loan,....The prime rate is usually tampered with by larger Banking institutions to increase profit margins during economic hard times to cover their losses on bad Loans and Defaults by other consumers they had to carry over the course of a series of Foreclosures or other bad Debts,....A CREDIT UNION instead of a Bank would be a better option, for borrowing money.They lend money at lower rates than most Banks, and offer better lending terms and payment plans for LONG TERM LOANS,...AS a rule of thumb, never BORROW MONEY unless it is a last resort,especially during HARD ECONOMIC times, and pay cash when you do your shopping,..STAY Debt free and save your hard earned money.