Banking interest

I'm not sure I am going to be helpful to the argument being made, which is that bank interest is too low. 

Bank interest is a "risk-free" investment. You don't have to do anything to earn the interest and your principal is not subject to fluctuation. You just sit back and earn the money. This is also the case for Cayman banking, but in the case of Cayman banking, you have ready access to your funds, so the interest earned should be lower than regular banking. Given that regular banking is a risk-free proposition, it shouldn't pay a fabulous rate.

Banking should pay just enough interest that you feel it is still worth tying up your money for the relevant time period. It is really important to the economy that players tie up their money in investments/banking. There is an enormous amount of money in the economy and not enough cash sinks to swallow that cash. If a lot of un-invested free cash is sloshing around the economy, it creates inflation.

Unfortunately, we have seen this inflationary problem over the last six months. It seems clear that inflation has crept back into the game after being vanquished several years ago. When players have a bunch of free cash and are not enticed to tie it up, players buy items, thus driving prices up. 

At this time, players are not being enticed to tie their money. Bank interest is low and the stock market is not providing much in the way of profit making opportunities. I believe there is a short term problem at the heart of this (what follows is my educated hypothesis, but I'm not ched, so it is just my hypothesis): Over the last year, a small group of players was able to absolutely rape the casino by using perfectly legal game mechanics and an enormous amount of money was injected into the game in the form of bookie payouts and blackjack winnings. We all know that the amount of money created in the economy is controlled at a rate of around +15% per year. So, in order to offset that huge injection of cash into the game, all other money making sources had to be dialed back. So, less stock market gains, less city finds, less bank interest, less company profits, etc. Eventually, the normal cash growth rate will catch up to where it should be, and the economy will hopefully normalize. So, yeah, a small group of people essentially broke the game, and the rest of the player base is paying the price. I suppose you could look at it another way and say they indirectly took that money from you. That said, I place no blame on them. Ched should have recognized the problem and fixed it sooner.  

TL;DR: Bank interest should not be highly lucrative because it is a risk free return. It should pay just enough to get you to tie up your money. I think we are at that level now and it shouldn't go any lower.