Th0r S1mpson

Why do these suck so bad right now? My bank lowered mine to below 3%, which sucks. No place else good to move it either that I can find. Everyone is low, low, low compared to a year ago.

What needs to change to improve these? The fed?

It sucks when your savings can't even compete with inflation.

Anyone still getting a decent return?

zuffy

Ask Helicopter Ben to stop pumping money into the market that the US don't have.

Red Dog

Because the Fed keeps lowering the Prime Rate. Good for borrowing. Bad for saving.

My e-trade savings account was 5.05% a year ago. I think it's 3.4% now. I was thinking about paying off the balance of my student loans now since they are around 3.6%. Before it made more sense to draw the interest on the money.

Brian Shannon

Because the Fed has lowered rates to eash the credit crisis. Lower rates means more cash is available to lend and more cash means that Banks don't have to pay their depositors as much for it.

Yes there are still ways to earn a decent return and beat inflation but you need to ask yourself, is the money in this savings account for emergencies, something that you may need to get to quickly? If so then your choices are limited.

If not then there are various money market accounts, mutual funds and bond funds that should have a higher return, albeit with high risk and less liquidity.

emanon

I've got a checking account with a local bank that pays a little better than 5%....with a few stipulations. (10 debit purchases a month, must subscribe to e-statements)

Other than that...yeah, most everything has tanked rate-wise. Ing's probably dropped 2% in the past year.

Jacoby Ellsbury

Lowering the fed rate isnt really great for borrowing either. The fed rates gone down almost 3% and borrowing rates have only dropped half a percent. All the fed rates drops do is help the big banks and weaken the dollar against the price of oil making gas prices higher and every citizen a little broker because of all the rising costs associated with oil, especially groceries. Im pretty much down to only spending on necessities nowadays, havent been in a retail store in months. I guess its teaching me to realize what is actually needed in life and teaching me to be even more frugal.

Brian Shannon

A lesson many, many other people need to learn

Red Dog

That is true. Very frustrating since I've been looking to refinance my mortgage. I expected the mortgage rates to drop more than they have with these cuts.

raven56706

yep its low... before i was making 3 bucks a day in interest... now its half

LurkerDan

ditto

jonw9

I was bragging about my CU before on this topic:

Dividends & Interest
April 1, 2008

Savings (Share) & Club Savings Accounts Dividend Rate APY*
Regular (Share) & Vacation Savings Account 0.00% 0.00%
Youth Savings Account 0.00% 0.00%
Holiday Savings Account 0.00% 0.00%

*APY = Annual Percentage Yield.

arbogast777

If you buy an I-Bond before the end of April, you'll get the current 1.20% fixed rate plus the (estimated) 4.86% inflation rate, for a composite rate of 6.06%. The fixed rate will be adjusted May 1, and it will most definately be lower.

CLICK HERE for more info.

Jeremy517

I get 5.25% from my checking account as long as I use paperless billing and have at least 12 debit transactions in a month.

4KRG

It is really hard to make 4% interest or more these days, Thanks Ben! you tard!

and then you have to pay income taxes on top of that shitty return.

This country is punishing people that save (me) and rewarding people that are financial morons (anyone who is know currently in foreclosure for buying more house than they can afford)

I could not dream up a more idiotic financial policy if I tried, oh wait, the next stupid move is almost upon us, the tax rebate and the $7000 tax credit for buying a foreclosed home Will the stupidity ever end?

Move your money outside the dollar into a currency that isn't sinking by double % digits per year (Pound or Euro) and into some other investment. It might complicate your life a little, but at least you won't lose tremendous value in your accumulated wealth.

tbird2340

Wow! That is great! Is there a high minimum balance or something?

What bank?

fujishig

so all the debit users with 5% or greater interest rates... what bank?

The 3% interest rate my ING account gets right now is still better than how my 401K is currently doing, so I guess that's something.

emanon

local bank - www.blackhawkbank.com

Geofferson

I wish I had locked in on 6% CDs when the getting was good.

Jeremy517

Just a local credit union. I've seen similar offers from other credit unions around here, so it doesn't appear to be that uncommon. Call around.

No minimum balance. 5.25% on balances up to $25,000.

ernestrp

When did they change the amount you can buy?

"$5,000 in TreasuryDirect and $5,000 in paper bonds"

I bought one after Katrina hit and I know you could buy up to 30,000.00 on-line back then.

Duran

Countrywide still has 4% on their online savings account. Of course, I wouldn't put more than the FDIC insured limit in there.

Duran

You are limited to $5k electronic/$5k paper for I-Bonds. That's lame.

imperator505

So is this just the banks failing to pass on the rate cut, and using the difference to make back some of the money that they lost on stupid lending to people who couldn't afford to pay?

Now the sensible borrowers, who make their repayments, are being punished for the banks' incompetent lending policies. Failure to pass on the rate cuts means that the intended stimulation of the economy isn't taking effect.

Shouldn't it be the banks' shareholders who take the hit?

[Apologies for probable financially illiterate (or is that innumerate?) rant]

Ranger

Me too. My CD rate has sunken like a rock, now at a pathetic 2%. But I'm sticking with that since the idiot Fed should pass yet another huge rate cut at the end of this month and savings rates will sink again.

I seriously can't wait for Bernanke to leave.

Duran

One could argue that the rates did decrease, versus what they would be if the Fed hadn't dropped interest rates.