Interest? What Interest?

[Dusty Devil Dale]

The National Prime Interest Rate is 6.25% as of September 22.  Have any banks passed any of that along to account holders for the use of your money?

 

I have some large savings accounts at different banks.  While they lend my money out at 5+ percent, they pay me, on average, less than 0.3%.  Has anybody found a bank that is passing along their higher rate benefits to their account holders?  

[Rye Miles #13621]

11 hours ago, Dusty Devil Dale said:

The National Prime Interest Rate is 6.25% as of September 22.  Have any banks passed any of that along to account holders for the use of your money?

 

I have some large savings accounts at different banks.  While they lend my money out at 5+ percent, they pay me, on average, less than 0.3%.  Has anybody found a bank that is passing along their higher rate benefits to their account holders?  

I hear ya! The best interest I’m getting is 1.9% on an 11 month CD for 25k. I get 1.4 on another one for 25k

[Dantankerous]

I get .05%.

 

I'm betting my money will grow faster if I plant it in the garden.

[Rye Miles #13621]

6 minutes ago, Dantankerous said:

I get .05%.

 

I'm betting my money will grow faster if I plant it in the garden.

Buy guns and ammo!

[Dantankerous]

2 minutes ago, Rye Miles #13621 said:

Buy guns and ammo!

 

Well, yeah!

 

I get more from buying ammo, shooting it and selling my brass than I earn in interest.

[Dusty Devil Dale]

Real estate has been the only halfway dependable investment I have found to hedge changes in dollar valuation.  But even that is tenuous now, and it is anything but liquid.  There seems to be no haven now.  Even burying money in the back yard isn't viable.  The day I do that, they'll outlaw cash and  convert to Bitcoin or other fake electronic money that the government can control and steal easily.

[Rip Snorter]

I got an offer from my credit union recently 2.6% 18 month CD can't recall the minimum, may have been ten grand, Not much, but something.  You might want to check credit unions in your area.

[bgavin]

I learned a very long time ago that money is like your health.
If you don't take an ACTIVE stance in its management, your returns won't be very good at all.

The current rate of real inflation makes CDs a completely losing investment.
As noted above, buying powder and primers would have given a FAR higher return.

[Buckshot Bob]

6 hours ago, Rye Miles #13621 said:

I hear ya! The best interest I’m getting is 1.9% on an 11 month CD for 25k. I get 1.4 on another one for 25k

I was just talking to my investment guy yesterday, he recommended looking into I bonds . They are tied to inflation 9.6% right now. You can only do 10 grand per person 

https://www.treasurydirect.gov/savings-bonds/i-bonds/

[Sedalia Dave]

8 hours ago, Buckshot Bob said:

I was just talking to my investment guy yesterday, he recommended looking into I bonds . They are tied to inflation 9.6% right now. You can only do 10 grand per person 

https://www.treasurydirect.gov/savings-bonds/i-bonds/

 

Read the fine print. The fixed rate is 0% The variable rate is currently 9.6% Every 6 months the interest rate is recalculated. Right now I Bonds are performing well. Who knows what the future holds.

 

Historical I Bond interest rates.

[Buckshot Bob]

12 minutes ago, Sedalia Dave said:

 

Read the fine print. The fixed rate is 0% The variable rate is currently 9.6% Every 6 months the interest rate is recalculated. Right now I Bonds are performing well. Who knows what the future holds.

 

Historical I Bond interest rates.

I’m not looking at it as a long term thing but as long as Brandon is in office and they keep printing money I figured inflation will be with us . Between me an the wife we can only put 20 in . And maybe getting $1800 back is way better than letting it sit in my savings account. If I get 18 months out of it at that rate I’ll be happy, vs the $25 bucks I’ll get in my savings account. After a year I can get out and only loose 3 months. It’s safe and my money is accessible. There’s just not allot of good options right now . In fact I’d be happy just to see my 401 stop bleeding  

[bgavin]

The RATE of inflation will slow down, as it always does.
The DAMAGE of inflation will be with us forever.

Ask yourself when was the last time you saw a new beach house in San Diego for $14,000 or a new Chevy for $600, a box of fifty 22LR cartridges for $0.50, or gasoline at $0.17 per gallon.

These were real prices at one time, and will never come back again.
This is the real damage of inflation.

[Patagonia Pete]

Yep ... I bonds ... let it set for a year an take it back out (not like you can put a whole lot on that anyhow) ... but otherwise it is easy just to move most excess bank account money over to a high yield saving account. 

I use AMEX but there are lots out there. Just transfer over what you want (online) and suck it back if you need it (takes 3 days tops to clear and be withdrawl-able from your bank). It has been going up (interest) multi-times a month lately with the fed thinging. 2.15 last week I think and there are others that pay better. 

 

No need to take 10-40 cents a month from the bank w/ you can get a couple of hundred from a high yield account. No penalties ... min balance or anything.  

 

[Marshal Dan Troop 70448]

So far, luck is holding out but several friends have lost as much as 60% of their retirement. Some who just retired last year are wondering if there is anything left in 10 or 20 years.

But back to the subject, my niece has since January put away 25,000.00 and last month has a total of $1.53 interest added on.  Over 8 months and won't even buy a gallon of gas or milk.

[Grass Range]

On 10/7/2022 at 5:20 PM, Dusty Devil Dale said:

The National Prime Interest Rate is 6.25% as of September 22.  Have any banks passed any of that along to account holders for the use of your money?

 

I have some large savings accounts at different banks.  While they lend my money out at 5+ percent, they pay me, on average, less than 0.3%.  Has anybody found a bank that is passing along their higher rate benefits to their account holders?  

Never happen

[bgavin]

On 10/9/2022 at 3:00 PM, Marshal Dan Troop 70448 said:

So far, luck is holding out but several friends have lost as much as 60% of their retirement. Some who just retired last year are wondering if there is anything left in 10 or 20 years.

 

Nothing is lost until one sells.
That aside, the long history of the market shows a steady uphill climb.

Today, the market is crushed in response to the cyclical anti-inflation response of the Fed.
Like all previous tightening, this will eventually pass and long before 20 years goes by.

Those needing to cash out their investments for living expenses are in a squeeze, for certain.
Those using their investments to generate dividend revenue can simply wait it out.

The massive inflation brought about by the party in power assures us that elevated prices will never return to pre-inflation levels.
They never have done so before, and never will again.

I am underwater in my IRA investments, but they still pay handsome dividends.
Now is the time for me to transfer those assets from IRA to Cash as a distribution on my terms.
This will significantly lessen my tax burden compared to when they return to full value.
And... taxes today will be cheaper than taxes in the future.