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Banks hoard Fed cuts
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 29 May 2008
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Results 1 to 7 of 7
Posted on Thursday, 13 November 2008
You do the maths
Posted by jc at 15:03 UAE time
I would look at what the rate of your mortgage should be with the current cuts in interest rates and send them a cheque for that value each month. Depending on what type of mortgage you took out. You should in fact be allowed these changes in rates. I strongly feel that the banks caused the problem and now when steps are made to soften the problem their good old fashion greed continues. I would seek legal advice!
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Posted on Wednesday, 18 June 2008
GET MOTIVATED
Posted by proactive at 13:32 UAE time
Everyone can sit around whining and moaning .. or they can do something about it. Any other industry you can actually take action. So do it with HSBC! Why doesn't everyone get together, take some legal opinion.
CONTRACTUAL FRAUD is illegal, no matter where you live.
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Posted on Monday, 2 June 2008
HSBC - misleading statements
Posted by nasir at 21:53 UAE time
I was already disappointed at the state of affairs at HSBC but after reading Mr Gul's response I think there needs to be a refresher course conducted for all employees of HSBC in basic macro economics, finance and even general knowledge.
The explanation given by Mr. Gul is misleading as well as incorrect. Firstly, all my HSBC mortgage agreement specifies US Fed rate so why should I care about long term dirham interest rates? Even if I consider that mortgages are based on long term UAE dirham interest rates which in any case will be similar to US$ long term rates. EVERYONE knows that dirham is pegged to the dollar and any interest rate whether short term or long term must be same in both currencies otherwise there would be an arbitrage and investors will start borrowing in one currency and investing in the other.
Currently the 5 year long term US Treasury bill is yielding around 3-3.4% (http://www.treasury.gov/offices/domestic-finance/debt-management/interest-rate/yield.shtml ) and HSBC’s own 5 year bond is yielding 2.7%. How can Mr. Gul justify charging 7.5-8.5%.
To add fuel to fire (the same fire HSBC customers are burning in) HSBC is giving their depositors a profit rate of 2% on e-saver account and 0.25% on their call deposit and saving accounts. Even HSBC fixed term deposit accounts offer a horribly low rate.
I would request Mr Gul to just check his own banks website, log on to his own account and check the term deposit rates for UAE dirham and US$ term deposits for 12, 18 and 36 months which are exactly the same and as low as they can be. Then again read his explanation and determine how illogical it seems.
Mr Gul you may also need to check EIBOR http://www.nbd.com/NBD/NBD_CDA/CDA_Web_pages/Rates_Charges/eibor_rates if you consider that an indication of long term UAE interest rates.
Just for general information standard chartered is offering a rate of EIBOR 2%+3.75%=5.75% + life insurance +property insurance= 6.25% if I want to get my HSBC loan refinanced which most probably I would do and get rid of this HSBC trap once and for all.
I really appreciate the efforts of ArabianBusiness.com in educating people before they get into the HSBC trap.
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High Interest Rates = High Levels of Customer Service?
Posted by RT at 17:34 UAE time
I have a mortgage with HSBC. I not only pay high interest rates, I also get deplorable customer service.
I'd gladly pay a premium price if the services rendered are commensurate with the price premiums.
Having banked in many places in the world from snooty Swiss banks to rural banks in the world's poorest towns. The absolute worst banking service I ever got in the world is from HSBC in the UAE.
Apart from high interest rates, consider:
1--How man times have you had to provide your passport copy to your bank? I provided the exact came passport copy to HSBC when I opened a current account, when I got credit cards, when I got car loans, and when I got a home mortgage. This practice is a ridiculous waste of paper and toner.
2--Why does HSBC need a salary certificate each time I ask for a credit card credit limit increase or when I get a car loan when my salary is directly transferred to them?
3--The blow conversation actually happened when I tried opening an HSBC e-Saver (online only) savings account:
Me: "So what's this e-saver account all about?"
HSBC Jebel Ali staff: "We give you higher interest rates. But you can only withdraw once a month and you have to maintain a minimum balance. We cut branch and tellering costs by allowing you to transact for this account only via online banking.
Me: "That's great, how do I open one?"
HSBC Jebel Ali staff: "when you get home, download the application form. Print it, fill it up, then come back to the branch to submit it.
So much for online only.
Dubai has come a long way for a nation that is only in its 30s. But if it wants to reach the next level towards becoming a truly great city, its hardware upgrades (gleaming towers and impressive physical infrastructure) need to be matched with significant software upgrades (customer service levels, staff attitudes, convenience mindset, etc.).
Cancelling HSBC's local banking license would be a good start. This would rid the national banking market with a horrid service provider and wold get the remaining banks to take customer service levels more seriously.
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Local Banks are no different you might as well stay with the International ones
Posted by Robert Dubai at 09:41 UAE time
When I took my Mortgage out with RAK Bank they were the cheapest around being a local bank and starting up but then after they got everyone on board they shot up their rates overnight to become one of the most expensive. I have hounded them to no avail to bring their rates down.
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Posted on Sunday, 1 June 2008
SAVINGS RATES
Posted by Colin Dodd at 17:55 UAE time
Interestingly HSBC have seen fit to lower the interest on savings accounts (on line e-saver) to 2% over the last 12 months but not the cost of borrowing.
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Greed has no boundary for banks
Posted by Rahul at 16:15 UAE time
Its unfortunate that the banks are betraying the trust of consumers by not living up to their promise in case of floating interest rates. The Government must enact a law to ensure total transparency in fixing interest rates by the banks and other financial institutions. I am sure a slight increase in the FED rate will see interest rate soaring in Dubai but the reverse is definitely not true...............Is someone listening??
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