A Widow’s Mite

I am a 70-year- old widow, and living on the cash savings which my late husband left for me. I have no other source of income. Lately the effective interest rate (after tax) on my deposit has shrunk from 10 percent to 3.3 percent in less than three months effectively reducing my income to 30 percent of what it used to be. While I read in the papers that this is good for the economy, all I know is that now I have to borrow money for my basic needs. Why is this happening and what else can I do to alleviate my situation? I thought that when my husband died I was going to be comfortable with what he left me, but now I am left struggling just to preserve my existing lifestyle. Is there any hope these time deposit rates to go back to their former levels?

Almost Desperate

I am not an economist but here is my advise on the matter. Indeed, falling interest rates in general are a good thing for any economy because they help lighten the debt burden not only of the government, but also of corporations that are our biggest employers. Consistently low levels of interest rates cannot but hasten our path to economic recovery and will ultimately be beneficial for everyone. But unfortunately, people like you who rely on a reasonably high interest rate for their cash savings get hurt in the interim. The present abnormally low levels of interest rates in this country are also influenced by the fact that banks who are awash with cash are understandably reluctant to lend their money during these risky times, and they therefore park this cash instead in government treasury bills (T-bills), which are almost risk-free. When you have all this cash looking for a haven, demand outstrips supply and the price of the T-bills supplied goes up, and that price is reflected in the plummeting interest rates. The bank deposits rates are in turn based on the T-bill rate. This explains why your deposit interest rates have hit a historic low of 3.3 percent. Hopefully, if and when the economy recovers and normal business operations and lending activities resume, we will again have a win-win situation for both banks and depositors, and you may find deposit interest rates increasing again.

As to what other options you may have, perhaps you could try to find out the interest rates of the placement in other banks. You can also consult an investment adviser. Most banks have one, and your bank probably has a number of them. But whatever you do, please be careful and don’t get desperate. At least you still have your principal intact and perhaps you could try to live a more austere lifestyle until good times come back.

* * * More Or Less

I am a foreigner and a boss in a garment company. I get so irritated when my employees answer me "more or less" when I ask them a question. What exactly do Filipinos mean by that? - Boss Emmanuel

More or less means almost or nearly. For example, " I have more or less completed the report…" But instead of getting irritated by this comment which is a negative emotion and could give you high blood pressure, why don’t you just take the comment lightly and with a sense of humor. You could ask "have you more or less done the sample of the new design? " or, "When can I more or less expect you to come back from lunch?" This will develop a more cordial atmosphere in your workplace and your employees will be more productive because they find that their boss is pleasant and that would make them hate to displease him.

* * * Doctor On Call, Patient On Hold

I had to undergo minor surgery and was put under local anesthesia and although I was in twilight zone I could hear what the doctor and his assistants were saying. Even with anesthesia, I felt discomfort because according to the nurse I was moaning. I was praying that the doctor would hurry up and finish the procedure. To my dismay, the doctor’s cellphone rang and he answered the call and talked for what seemed like a long time. It was obviously a personal call. I was really so disgusted as my anesthesia was beginning to wear off and started to feel pain. I had to be given another dose of anesthesia. Shouldn’t there be a law banning cell phones in the operating room and shouldn’t doctors focus on their patients when they are operating on them so they can avoid making mistakes? After all, our lives are in their hands!! In fact I considered suing the doctor but my brother-in-law stopped me as the doctor is a friend of his. I am tempted not to pay his bill and not to pay for the extra dose of anesthesia either which would not have been necessary if he did not answer his cell.

Disgruntled Patient

I asked a doctor friend if he is allowed to use his cell phone inside the operating room. He explained to me that some doctors have overlapping surgeries and when one takes longer than expected, his assistants would like to know when they could start preparing his next patient for surgery. The only way to get the doctor is through the cell phone. But to receive a personal phone call is unethical and definitely, should not be done. In your case, it cost you pain, discomfort and more money. I would talk to your doctor about it and tell him your misgivings about paying his bill. Chances are, he will think twice about charging you more than necessary after hearing your complaints.

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Mail your questions to Mayenne Carmona at Stargate sixth floor, Jaka Bldg, Ayala Ave. Makati City.