“For more than 100 years, we have provided dedicated service to the country and been a good corporate citizen”
NASSAU, BAHAMAS — Royal Bank of Canada (RBC) said yesterday that its decision to adjust interest rates on savings accounts and term deposits to zero percent is in response to local market and economic conditions.
The bank’s decision drew the ire of its customers on Wednesday, with dozens taking to social media to vent.
RBC said in a statement: “Like all financial institutions, RBC Royal Bank periodically makes amendments to the products we offer and adjusts them according to various internal and external factors.
“On October 1, we changed our interest rates on savings accounts and term deposits to zero percent until further notice. This is happening in a period of historically low interest rates.”
It added: “RBC implemented this change in response to local market and economic conditions that affect our business and our approach to the interest rates we offer clients.
“For more than 100 years, we have provided dedicated service to the country and have been a good corporate citizen through our charitable donations and community programs.
“RBC values the business of all our clients here in The Bahamas and around the world. We remain committed to working with our clients to provide them with the products and solutions to meet their needs.”
Former Parliamentarian Loretta Butler-Turner was among those who blasted the bank for the move in a Facebook post and urged customers to “withdraw every penny”.
Butler-Turner called the move “utterly unfathomable, unbelievable and unconscionable”.
In response to widespread public commentary over the move, the Central Bank said it is actively committed to working with the Ministry of Finance to develop a government savings bond scheme that would allow more households to accumulate investments at an affordable pace in safe government instruments.
RBC’s latest move comes just over a week after social media backlash erupted over the bank’s decision to discontinue the issuance of $20 bills at its ATMs.
At that time, the bank stated in a notice that after reviewing its clients’ banking habits at its ATMs, it found “there was not a demand for $20 bills and made the change”.
The bank recommended that for smaller purchases, its customers use their RBC debit cards at the point of sale devices at retailers, restaurants and other services across the country.
However, Central Bank Governor John Rolle said last week that the regulator is in talks with the Canadian bank over that decision.
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