Go Back  DVD Talk Forum > General Discussions > Other Talk
Reload this Page >

Savings account interest rates

Other Talk "Otterville" plus Religion/Politics

Savings account interest rates

Old 04-18-08, 08:24 AM
  #1  
DVD Talk Hero
Thread Starter
 
Th0r S1mpson's Avatar
 
Join Date: Apr 1999
Location: Seattle, WA
Posts: 36,443
Likes: 0
Received 0 Likes on 0 Posts
Savings account interest rates

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?
Old 04-18-08, 08:31 AM
  #2  
DVD Talk Legend
 
Join Date: Jan 2000
Location: Region 1
Posts: 16,291
Likes: 0
Received 0 Likes on 0 Posts
Ask Helicopter Ben to stop pumping money into the market that the US don't have.
Old 04-18-08, 08:32 AM
  #3  
DVD Talk God
 
Join Date: Feb 2000
Location: Directionally Challenged (for DirecTV)
Posts: 123,175
Likes: 0
Received 3 Likes on 3 Posts
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.
Old 04-18-08, 08:35 AM
  #4  
DVD Talk Legend
 
Join Date: Jun 1999
Location: USA
Posts: 12,272
Received 0 Likes on 0 Posts
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.
Old 04-18-08, 08:35 AM
  #5  
DVD Talk Limited Edition
 
Join Date: Jan 2000
Location: Rockford IL
Posts: 5,836
Likes: 0
Received 2 Likes on 2 Posts
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.
Old 04-18-08, 08:46 AM
  #6  
DVD Talk Special Edition
 
Join Date: Sep 2007
Posts: 1,915
Likes: 0
Received 0 Likes on 0 Posts
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.
Old 04-18-08, 08:48 AM
  #7  
DVD Talk Legend
 
Join Date: Jun 1999
Location: USA
Posts: 12,272
Received 0 Likes on 0 Posts
I guess its teaching me to realize what is actually needed in life and teaching me to be even more frugal.
A lesson many, many other people need to learn
Old 04-18-08, 08:55 AM
  #8  
DVD Talk God
 
Join Date: Feb 2000
Location: Directionally Challenged (for DirecTV)
Posts: 123,175
Likes: 0
Received 3 Likes on 3 Posts
Originally Posted by 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.

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.
Old 04-18-08, 10:08 AM
  #9  
DVD Talk Legend
 
raven56706's Avatar
 
Join Date: Feb 2001
Location: Back in the Good Ole USA
Posts: 21,767
Likes: 0
Received 0 Likes on 0 Posts
yep its low... before i was making 3 bucks a day in interest... now its half
Old 04-18-08, 10:33 AM
  #10  
DVD Talk Legend
 
LurkerDan's Avatar
 
Join Date: Jan 2000
Location: The People's Republic of Boulder
Posts: 22,097
Received 4 Likes on 4 Posts
Originally Posted by 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.
ditto
Old 04-18-08, 10:37 AM
  #11  
DVD Talk Hall of Fame
 
Join Date: Nov 2000
Location: On the banks of the Red Cedar
Posts: 9,867
Likes: 0
Received 0 Likes on 0 Posts
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.
Old 04-18-08, 10:58 AM
  #12  
Senior Member
 
Join Date: Jul 2005
Posts: 367
Likes: 0
Received 0 Likes on 0 Posts
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.
Old 04-18-08, 01:01 PM
  #13  
DVD Talk Legend
 
Join Date: Aug 2000
Location: Newberg, OR
Posts: 17,252
Likes: 0
Received 1 Like on 1 Post
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.

Last edited by Jeremy517; 04-18-08 at 05:47 PM.
Old 04-18-08, 01:22 PM
  #14  
DVD Talk Legend
 
Join Date: Jan 2000
Posts: 16,173
Likes: 0
Received 0 Likes on 0 Posts
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.
Old 04-18-08, 03:53 PM
  #15  
DVD Talk Limited Edition
 
Join Date: Dec 2000
Location: Ytown, Ohio
Posts: 5,211
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by Jeremy517
I get 5.75% from my checking account as long as I use paperless billing and have at least 12 debit transactions in a month.

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

What bank?
Old 04-18-08, 03:55 PM
  #16  
DVD Talk Hero
 
Join Date: Aug 1999
Posts: 28,094
Likes: 0
Received 14 Likes on 12 Posts
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.
Old 04-18-08, 04:00 PM
  #17  
DVD Talk Limited Edition
 
Join Date: Jan 2000
Location: Rockford IL
Posts: 5,836
Likes: 0
Received 2 Likes on 2 Posts
Originally Posted by 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.
local bank - www.blackhawkbank.com
Old 04-18-08, 05:07 PM
  #18  
Moderator
 
Geofferson's Avatar
 
Join Date: Aug 2000
Location: The Village Green
Posts: 39,217
Likes: 0
Received 1 Like on 1 Post
I wish I had locked in on 6% CDs when the getting was good.
Old 04-18-08, 05:46 PM
  #19  
DVD Talk Legend
 
Join Date: Aug 2000
Location: Newberg, OR
Posts: 17,252
Likes: 0
Received 1 Like on 1 Post
Originally Posted by fujishig
so all the debit users with 5% or greater interest rates... what bank?
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.

Originally Posted by tbird2340
Wow! That is great! Is there a high minimum balance or something?
No minimum balance. 5.25% on balances up to $25,000.
Old 04-18-08, 06:03 PM
  #20  
DVD Talk Limited Edition
 
Join Date: Oct 1999
Posts: 6,461
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by 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.
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.
Old 04-18-08, 06:08 PM
  #21  
DVD Talk Hall of Fame
 
Duran's Avatar
 
Join Date: Jul 1999
Location: Columbia, MD
Posts: 8,177
Likes: 0
Received 0 Likes on 0 Posts
Countrywide still has 4% on their online savings account. Of course, I wouldn't put more than the FDIC insured limit in there.
Old 04-18-08, 06:18 PM
  #22  
DVD Talk Hall of Fame
 
Duran's Avatar
 
Join Date: Jul 1999
Location: Columbia, MD
Posts: 8,177
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by 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.
You are limited to $5k electronic/$5k paper for I-Bonds. That's lame.
Old 04-18-08, 06:18 PM
  #23  
Senior Member
 
Join Date: Dec 2006
Posts: 764
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by 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.
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]
Old 04-18-08, 08:45 PM
  #24  
DVD Talk Legend
 
Join Date: Apr 2002
Posts: 20,726
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by Geofferson
I wish I had locked in on 6% CDs when the getting was good.
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.
Old 04-18-08, 08:49 PM
  #25  
DVD Talk Hall of Fame
 
Duran's Avatar
 
Join Date: Jul 1999
Location: Columbia, MD
Posts: 8,177
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by 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?
One could argue that the rates did decrease, versus what they would be if the Fed hadn't dropped interest rates.

Thread Tools
Search this Thread

Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.