Pathetic Savings Account Change

[Drake3287]

This just shows how bad things are for those of us with CD's still. (And yes, I still have other investments) My $100k Capital One Money Market account was making a whopping .30% and I noticed their Savings accounts were paying .40%! Not to be out smarted I actually spent the time to open a new account and transfer funds, all for .10% or an $8.00 a month difference. I guess every cent counts!

[Jluke]

The three accounts I have with them all are at 0.3%.

360 money market
savings
kids savings

i must be missing that variety of account that is 0.4%

[Fishindude77]

I keep a CD ladder despite the poor rate of return. That money is safe and won't ever lose, like you could with other investments.
Good to have money in a variety of different things.

[james.hendrickson]

The interest rates you guys are talking about are effectively zero.

The low interest rates in traditional banking products are part of what is driving capital flow into stocks and the crypto space.

I put about $50 into BlockFI, which has been paying out about 7.5%.

I don't recommend this for everyone as frankly I don't understand exactly how BlockFi is able to maintain that rate, but crypto lending is an option for you if you're not satisfied with your CD rates.

[myrdale]

I do remember as a kid hearing relatives talk about having CD's as their retirement accounts. At a peak of 12% that wouldn't have been to bad of a plan. As low as rates are today, I am not convinced they are worth the effort.

[Petunia 100]

This just shows how bad things are for those of us with CD's still. (And yes, I still have other investments) My $100k Capital One Money Market account was making a whopping .30% and I noticed their Savings accounts were paying .40%! Not to be out smarted I actually spent the time to open a new account and transfer funds, all for .10% or an $8.00 a month difference. I guess every cent counts!

You can get that same increase again by switching online banks. There are several paying 0.5% on savings accounts.

[Petunia 100]

I do remember as a kid hearing relatives talk about having CD's as their retirement accounts. At a peak of 12% that wouldn't have been to bad of a plan. As low as rates are today, I am not convinced they are worth the effort.

Inflation was double digits as well, so it wasn't a great way to grow your money then either.

[kork13]

I do remember as a kid hearing relatives talk about having CD's as their retirement accounts. At a peak of 12% that wouldn't have been to bad of a plan. As low as rates are today, I am not convinced they are worth the effort.

That's all nice and dramatic to say you had a CD earning 12%... But what was inflation at the same time? Coming off a high above >14% inflation in 1980. Those CD rates were basically just a few years delayed behind the massive inflation rate of the period. (for those curious, the "dividend yield" line reflects the average dividend of the S&P 500.)

[Drake3287]

I keep a CD ladder despite the poor rate of return. That money is safe and won't ever lose, like you could with other investments.
Good to have money in a variety of different things.

I'm in the same situation. I already hit our goal of saving/investing so anything else is gravy plus I sleep better at night knowing my low rate CD's will always be there. Just waiting for another of my CD's to roll over to a .50%! Feel sorry for older people that actually live off these rates, my parents certainly did years ago.

[disneysteve]

I'm in the same situation. I already hit our goal of saving/investing so anything else is gravy plus I sleep better at night knowing my low rate CD's will always be there. Just waiting for another of my CD's to roll over to a .50%! Feel sorry for older people that actually live off these rates, my parents certainly did years ago.

I don’t see the point of locking up money in a CD when a savings account is paying the same amount. There’s no benefit to that.

[Petunia 100]

I don’t see the point of locking up money in a CD when a savings account is paying the same amount. There’s no benefit to that.

I agree, although it is possible that savings account rates could go even lower.

[disneysteve]

I agree, although it is possible that savings account rates could go even lower.

True, though with the Fed rate essentially at zero, it's very unlikely unless the US goes to negative rates (as other countries have done).

[myrdale]

That's all nice and dramatic to say you had a CD earning 12%.

I am sorry you saw my post as being dramatic, I did not intend it to be such. And your statement is false, I never said I had a CD earning 12%.

[james.hendrickson]

I agree, although it is possible that savings account rates could go even lower.

Petunia, I'm with Disneysteve on this one. Interested rates are very, very low at this point. Its unlikely that the base rate is going to go much lower.

[kork13]

I am sorry you saw my post as being dramatic, I did not intend it to be such. And your statement is false, I never said I had a CD earning 12%.

No intention to direct any inference toward yourself personally, I only meant a generic "you". I was only pointing out that relative to today, 12% is certainly a dramatic difference, but the context of the financial climate at the time lessens the impact of such high rates.