December 9, 2024

Taylor Daily Press

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The government decided to sharply cut and cap the interest on its savings account

The government decided to sharply cut and cap the interest on its savings account

The government took the astounding decision to cap the interest on the e-DEPO account at 2.5 percent of the total. Today the fee is still 3.1%, which means it will be down 60 basis points from next month.


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Why is this important?

In recent months, the Bureau of Depository and Forwarding’s e-DEPO account has drawn attention because this account brings in more money than bank savings books. The government is now cutting revenue.

In the news: The government is concerned about the impact of interest on the e-DEPO account on government finances and has therefore decided to cap the savings allowance.

  • Because of the amendment to the law, interest rates will drop to a total of 2.5 percent next month, compared to 3.1 percent today. Thus, the savings allowance decreases by 60 basis points.
    • You still have to pay a 30 percent withholding tax on your savings allowance, and as a result your net allowance drops from 2.17 to 1.75 percent in May.
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