Italy shocks banks with 40% windfall tax for 2023
www.reuters.com
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.

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.

  • deltatux :mapleleaf:@mstdn.ca
    1·
    1 year ago

    @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

      • deltatux :mapleleaf:@mstdn.ca
        2·
        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%.