The interest on overdrafts is rising, despite falling interest rates. Zeev Klein
Despite falling interest rates, the banks have raised the overdraft interest on current bank accounts 0.43% in September-October, to 11.24%, according to Bank of Israel data published today. The increase includes a 0.38% hike in October.
The maximum interest rate on the grey market on non-bank loans was 19.31% in October. The average interest rate on credit to the public was 8.31% in October, and the interest on term credit was 7.73%. The average interest on deposits was 4.27%, the average interest on term deposits was 4.69%, and the average interest on positive balances on current bank accounts is 1.22%.
The average interest rate spread between the interest on credit and the interest on deposits was 4.05% in October, slightly less than in August. The banks’ financial spread on unlinked shekel instruments between the yield on assets and the cost of liabilities was 3.1% in October, 0.5% less than in August.
Published by Globes [online], Israel business news - www.globes.co.il - on December 17, 2006
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