Budget-planning is essential before making an investment, in order to determine how much of our income we are willing to allocate, while refraining from expenses having too much of an impact on our standard of living… Bank One strongly recommends this kind of financial planning. It helps to have a better perspective on current and future financial needs, and to realise forthcoming projects as well, such as the purchase of a house or a car, or even funding your child’s education.
For a better understanding of the solutions offered by Bank One, we have interviewed Shehryar Ali, Head of Retail Banking.
Tell us about MoneyTree.
Freshly launched, MoneyTree is a savings account solution which offers a rate going up to 2.70% – one of the best on today’s market. With an initial deposit of Rs 50,000, this account has no monthly fees involved and offers several compelling benefits. For instance, the interest rates calculated on your daily balance are payable quarterly; 2.10% annually for a balance between Rs 50,000 and Rs 500,000, and 2.70% for a balance above Rs 500,000. In addition, for amounts greater than Rs 10m, the customer can benefit from a rate up to 3%.
Aside from savings plans, what are the other investment solutions provided by Bank One?
Customers can also opt for a fixed deposit alternative, with a rate reaching up to 4.0%. They can furthermore choose the span of their investment, with a timeframe ranging from 1 to 5 years’ time. They can also determine the frequency of the settlement of interests. The latter can be paid every month, quarter, semester, year or at a specific convened moment; as per the client’s’ needs and projects.
How would you encourage your clients to choose traditional investment solutions like savings accounts in such a low interest-rate environment?
The investment solutions we offer, be it savings accounts or fixed deposit, are bona fide. This shall give them peace of mind for a better financial planning and investment. When choosing a savings account, the client makes a liquid investment – which means it can easily be claimed back, converted into cash without impacting much on its value. This is not always the case when investing.
What do you foresee in terms of investment this year?
As we are not expecting any significant events which could impact on the global and local economy for the coming months, we can assume that the investment rate is likely to remain more or less stable this year. Moreover, in the case of a revision by the MPC, it will incur a very minor change, by only 25 points.
It is however, noteworthy that Bank One currently offers one of the best savings rates on the market, being 2.10%. By contrast, most banks usually propose a rate below 2.0%.