I use this blog as a soap box to preach (ahem... to talk :-) about subjects that interest me.

Sunday, February 5, 2012


This morning, I saw an interesting advertisement in the window of a bank.  It offered an interest rate of 5.6% for a three-month term deposit (yes.  In Australia we have high interest rates. This is one of the reasons why people pump up the value of  the AUD by investing in it).  Then, on the same ad, with the figures well aligned, it offered to pay 5.10% for a six-month term deposit.

Do you get it?


They expect the interest rates to decrease.  Therefore, they offer a lower interest rate for six months than for three months.  But, by writing 5.10 instead of 5.1, they make it look as if the interest rate for six months were higher than that for three months.  They play on the ignorance of people who see 10 greater than 6 even if it is after a decimal period.

I hate banks...  Almost as much as insurances...

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