Financial institutions must attract investors

THE EDITOR: Every year, financial institutions such as banks and insurance companies beat their chests after making millions of dollars from consumer investments. However, on a sad and disappointing note, the percentage of interest paid to their clients has been constantly dropping.

In the past, many retired and unemployed people were able to cope with their financial demands from the comparatively high dividends they received on their regular savings accounts, fixed deposits and other forms of savings.

They comfortably paid their utility bills, performed construction work and repairs to their homes, had their cars fixed and purchased the much needed groceries. People felt encouraged to improve their investment portfolio for the realisation of greater profitability. Consequently, many investors were able to stash away money for rainy days, especially in times of illness.

We are living in a time when the rich are getting richer from the sweat and financial resources of the poor. Banks and other financial resources must think about giving back a fair portion of the cake to their poor and struggling customers. There is an old adage that goes, “Cast your bread upon the waters for you will find it after many days.”

Financial institutions should focus on giving freely to their clients without worrying about what they will get from doing so, or what their clients will do with what they receive from them. What goes around comes around. When customers begin to earn reasonable earnings from their investments, they will tend to make handsome investments. Therefore, with the passage of time such caring financial enterprises may richly go from strength to strength.

LINDSEY RAMPERSAD

via e-mail