How come banks don't pay squat for interest on savings accounts any more?

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Piper2TiffaneeOzSurferAdaWill_JanitorSukiesnowMazeCarlaRoosterBubSynysterGatesFlrdsgns
How come banks don't pay squat for interest on savings accounts any more?

Explained by Rooster...

Even CD rates are lower now. They seem to be constantly be going down. They want your business but can't even give you decent interest for them holding your money?

Top Comment

The cheaper money is to borrow the less the banks pay for interest. I agree it is not appealing to have a savings account that only pays 1% interest. So I don't let much sit around in savings.

+101010 See / Add Replies

Will_Janitor Will_Janitor

Comments

The cheaper money is to borrow the less the banks pay for interest. I agree it is not appealing to have a savings account that only pays 1% interest. So I don't let much sit around in savings.

+101010 Reply

Will_Janitor Will_Janitor

In response to “The cheaper money is to borrow the less the...

I've been trying to move some around and invest here and there but the rest is just getting that low interest. Sickening actually!

+553 Reply

Rooster Rooster OP

In response to “I've been trying to move some around and...

Facebook shares are at bargain basement prices right now!

+444 Reply

Budwick Budwick

In response to “Facebook shares are at bargain basement...

I'll pass on that! LOL

+333 Reply

Rooster Rooster OP

Fractional reserve banking...

+664 Reply

ForkNdaRoad ForkNdaRoad

Not sure how the Banks work in the US but here in Canada, savings accounts are worthless. Canada Saving bonds are a bit better, and RRSP's is a step up. Still not a lot of return.

+444 Reply

SynysterGates SynysterGates

I think this really hit the elderly hard. Even those who had a good nest egg, and are in nursing homes have watched their savings dwindle down to nothing as the interest on their money has gone down to nothing while the cost for their care has skyrocketed.

+665 Reply

JustJimColo JustJimColo

In response to “I think this really hit the elderly hard...

Exactly! It isn't right!

+333 Reply

Rooster Rooster OP

In response to “I think this really hit the elderly hard...

That is so right. My mom had a cd and was getting so little from it she chose not to renew it. Cashed it out and put the money in my sisters safe. Her monthly care in assisted living is astronomical.

+555 Reply

Carla Carla

In response to “That is so right. My mom had a cd and was...

Going through that here as well. Mine had 500K when she went into a facility 11 years ago and now it's down to almost nothing. The price for care has tripled. I guess the private sector ,who owns these "care" facilities, is adamant about making sure they get every penny of someones savings, that the government didn't take. It's pretty sad.

+665 Reply

JustJimColo JustJimColo

In response to “Going through that here as well. Mine had...

I read a story where an old lady just kept going on long cruises and said it worked out cheaper than a nursing home....

+443 Reply

JD JD

In response to “Going through that here as well. Mine had...

Mine just since august.
I will tell you, though....the facilities that are filled with people that only recieve their retirement and or ss are abhorent. I pretty much can surmise that would be how state or federal run facilities would be like.
The whole system is sad. We treat our elderly as though they no longer count. And we are all living longer....we all may be in that same position.

+554 Reply

Carla Carla

In response to “Mine just since august. I will tell you...

One thing we know Carla, is that nursing home owners don't go broke. The only people going bankrupt are the elderly residents.
According to Genworth Financial, a private room in a nursing home averaged $92,378 in 2016.
https://www.forbes.com/sites/ry.../#36ed8d607a74

+221 Reply

JustJimColo JustJimColo

Look at the returns history of Berkshire Hathaway (inception 1965, I believe). The "baby" Berks are affordable if you're interested in putting away money for the loooooooong haul :)

+223 Reply

Bub Bub

I thought it was always like that...

Here we have a tax-free Savings acct (tfs) which is something.

+112 Reply

Sukiesnow Sukiesnow

The flip side is , it's cheaper to get a mortgage..so use your savings and buy property...

+222 Reply

JD JD

Because they aren't charging squat for loans.

+222 Reply

Walt_OReagun Walt_OReagun

I guess the short answer is they pay you what your money is worth.

+111 Reply

Maze Maze

In response to “I guess the short answer is they pay you what...

In my case? I guess it doesn't mean that much to them then.

+111 Reply

Rooster Rooster OP

In response to “In my case? I guess it doesn't mean that much...

They pay a low rate because due to "easy money policy" from the Federal Reserve, it's easy for them to obtain money. And the money they get from the Fed is borrowed on different terms than depositor money - just because you've got money in there today doesn't mean they can count on it to be there tomorrow, you can withdraw it at any time - so they pay a lower rate for depositor money.

I don't know how old you are or how much money you've to to play with, but it seems like a good moment in history to own gold and silver coins, silver in particular. The safest way to store metals, as far as I know, is with a private vaulting service like Brinks or Loomis as opposed to a safe deposit box at a bank. That way, if shtf and there's a bank holiday, you've still got access to your metal.

+221 Reply

Maze Maze

In response to “They pay a low rate because due to "easy...

Thank you. I'm 65 and have plenty in there.

+221 Reply

Rooster Rooster OP

In response to “They pay a low rate because due to "easy...

I disagree. If you don't have metals in your possession, you don't own them. You are talking about "trust" in a business that is famous for being untrustworthy. The safest place to store metals is to hide them in your own home where they can only be stolen by an honest crook who physically breaks in.

If you have anything in any sort of an account, any IRS employee can ask for it and they will hand it over without a peep. He doesn't need a court order or nuthin.

+221 Reply

that_guy that_guy

In response to “They pay a low rate because due to "easy...

Anybody who insists on keeping cash in a bank account should at least open a Treasury Direct Account. Then when the bank doesn't open you can go online and transfer your funds out of it.
https://www.treasurydirect.gov/

+221 Reply

that_guy that_guy

In response to “They pay a low rate because due to "easy...

And while we're talking about safety, you should know that if you have stocks held by a broker, and the broker declares bankruptcy, your stocks will be sold to pay his bills. Get certificates in your hand. (It is safe to store certificates in a safe deposit box.) (But do not store your will there. When you croak, the box is sealed and not opened until after the estate has been divided.)

+111 Reply

that_guy that_guy

In response to “And while we're talking about safety, you...

Thank you for all the info. After I sold my two vintage WW2 planes, I came into quite a bit of money as one is real rare. Trying to find the best place to at least get something from someone holding all that money. Quite helpful! I appreciate it.

+221 Reply

Rooster Rooster OP

In response to “Thank you for all the info. After I sold my...

The best reason to hold silver ingots is that the price ratio to gold right now is about 80:1. That ratio varies from 30 or so to 100 or so. When it goes down, you swap your silver for gold, and when it goes up you swap your gold for silver.

It is the most boring investment there is. Also the safest. Store your metals in a cardboard box under some Christmas ornaments.

+221 Reply

that_guy that_guy

In response to “The best reason to hold silver ingots is that...

Ha! I have a wicked good safe!

+111 Reply

Rooster Rooster OP

In response to “Ha! I have a wicked good safe!

The only good safe has a round door and is set in several tons of cement. Anything less is just a billboard saying "I'VE GOT SOMETHING WORTH STEALING!"

+111 Reply

that_guy that_guy

In response to “The only good safe has a round door and is...

It's in the cement all right!

01 Reply

Rooster Rooster OP

It's called central banking ("The Fed") and they make it as complicated as possible specifically so working people can't understand it. You can begin your education by reading the free materials at https://mises.org/ Allow plenty of time to learn it.

+111 Reply

that_guy that_guy

In response to “It's called central banking ("The...

Thank you. I copied and pasted your link and will study it!

01 Reply

Rooster Rooster OP

First you have to overstand how the banking system works, what money is and economy (or your hard labour) work.

https://m.youtube.com/watch?v=iFDe5kUUyT0

We should never of bailed out the banks, (not that we were given a choice, they haven't paid us back either have they?) they are a yoke around our necks. We should of started our own bank, owned by us, so we benefited from the interest which can be made by loaning your money out when its in a savings account. If you deposit £100 into a bank, that bank loans out £90 of your money with interest.







+222 Reply

Creamcrackered Creamcrackered

Banks want some deposits in their savings accounts, but unless they can lend out money at a higher rate than they are offering on savings accounts, they’re not going to make money. They’re going to lose money.

+111 Reply

Puppy_Licks_R_Kisses

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