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Italy approves 40% windfall tax on banks (www.reuters.com)

submitted 1 year ago* (last edited 1 year ago) by [email protected] to c/[email protected]

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Italy dealt a surprise blow to its banks and sent shockwaves across the sector in Europe by setting a one-off 40% tax on profits reaped from higher interest rates, after reprimanding lenders for failing to reward deposits.

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[–] [email protected] 7 points 1 year ago (3 children)

While it might not directly relate to Canadian Finance News, I believe we could implement a similar regulation for big banks in Canada. Currently, none of these banks have raised their deposit interest rates, and I think this practice should become the standard.

[–] [email protected] 1 points 1 year ago (2 children)

@mxwarp I mean, what incentives do these banks have to pay higher interest? They own like >80% of the market and their name recognition alone draws deposits.

Keep in mind that paying higher interest rates is a way to attract deposits, when your name recognition & size can already do that for you, why pay more?

As a consumer, people need to consider shopping around. Far too many Canadians believe there's no choice when in fact there is.

For higher paying options, see: https://highinterestsavings.ca/chart

[–] [email protected] 1 points 1 year ago* (last edited 1 year ago) (1 children)

Looks like they finally got the memo!

[–] [email protected] 2 points 1 year ago

@mxwarp This is just a promo rate, all the Big Banks & their subsidiaries do this. They boost the rate for 3-4 months and then you earn their base crappy rate thereafter.

Scotiabank, Tangerine, Simplii & etc. have been doing this for years.

The options in the link I provided previously are non-promo rates.

Other options incl. fintechs like WealthSimple offer 4.5% if you have $100k deposited or invested with them, or via money market funds or investment savings account which all pay >4%.