Thread: Deposit interest rates

Hi guys

I had a question on what the typical rates for a locked in deposit was in the banks. I was reading a couple weeks ago, and of course can't recall the link (was either this forum or another I read) where someone spoke about very high rates of interests at the village banks (up to 20%)? Having looked online I really can't find any info.

The big banks look to have crappy rates (better in my savings account here that is not locked down) but perhaps I am looking at the wrong places?

My friend was telling me he only pays 1.8% interest on a loan he took to expand business (collatoral of a nice block of land), so it seems a bit suss they would be so high?

I hope to bring a decent sum (not huge, just decent) to live off for the 2-3 years I will be there and getting a decent rate would greatly increase my lifestyle.

Any info would be greatly appreciated!

Ahhhh!! Ok that starts to make a bit more sence! I was wondering how in heck the local banks could make money on 1.8%PA

You need to talk to Gilbert he was the one that posted the 20% interest

Originally Posted by gilbert de jong

no problemo...everyone can find that bank, jalan raya singaraja-gilimanuk..then at the trafficlights in Lovina make a sharp turn to the left, then ater +- 100/200 meters on your let hand side is the bank I mentioned. btw, the 21% and 24% are interest per year, but still
If you or anybody else can't find it, or would feel more comfortable if I introduce you there, no problemo too....oh and I dont get commision , hahaha

Hi Gilbert,
I have noticed in several threads you haven't mentioned the name of the bank, and assume this is meant to avoid advertising. There is LPD however which seems to be found in most villages for which there was an article in the Monday May 16th. issue of Bali Radar. The Amlapura bank had refused to refund a depositor's 955 juta rp.deposit and I don't know all the details, but obviously if the depositor had asked to withdraw the funds before the contractual time he/she would have incurred a surrender fee and it wouldn't have made the newspaper.
It was a substantial sum,and could have put any small bank in a financial bind, but I can't help but wonder about the security implications when the sums deposited are not insured.
Sorry I can't provide more information. I don't have the article and when trying to Google it learned that a non-subscriber can't have access to articles. I just think that this is just worth mentioning for the unwary investor.

Thanks gilbert - may take you up on that offer. At least now I know its feasable.

Interesting about that article mugwump - without knowing the full details it is hard to judge. Even in aus there is a limit on what you can take from a bank without reasonable notice. If they refused to give it back ever.. well thats kinda worrisome.

Thought I would share the reply my close mate gave me regarding this topic:

if you borrow some money;
for example,..100 million you will pay for interest 2 - 2.5 % per month.

and if you put money in big bank( goverment bank), for 100 million they will give interest 0.2 % very small money .But if you put money in front of my house,there is small bank we call LPD.
fFr 100 milion you will get money betwen 500.000-700.000 per month and if you
put save money for one year they will give you interest 0.8- 1 % per month.This is really good interest for one month.

So even at the non uber lovina bank thats a 12% rate - not to shabby. Since I would prefer to share the love around perhaps some in gilberts bank (no fee but I pay commission in beers) and some locally as well?

Very happy with this news. Perhaps I will have a diving budget after all!

one of those guys is rich, and will pay his part at once, the other two have been given a paymentschedule.

I wonder how this guy got very rich?????
Payment schedule, what if I wanted my money back now?????

Originally Posted by gilbert de jong

mugwump...it's a little different as described...the people in charge of that LPD (3 guys) needed to explain where the money of the bank is..not money from a client,but funds of the whole bank. They couldn't and now there's been a ruling they have to pay the money back to the bank.
one of those guys is rich, and will pay his part at once, the other two have been given a paymentschedule.

tiggy...no worries, about commision or fee's or that, a friendly chat with a beer is okey tough :)

Thanks for your clarification Gilbert. I was hesitant to refer to the news article since my Bahasa is not that fluent and my review was only cursory, but felt it should be mentioned since I couldn't understand why a depositor should have been denied his funds if it wasn't because of surrender charges.