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To me it seems that getting a decent return was a lot easier prior to 2007. Banks would pay interest rates of 6% or so and inflation was low. The stock market o
by incompatible 9y ago
To me it seems that getting a decent return was a lot easier prior to 2007. Banks would pay interest rates of 6% or so and inflation was low. The stock market only gradually became overvalued.
- kasey_junk 9y agoCitation needed. In 2007 a 1 year cd was paying about half of that. Savings account rates have not kept up with inflation in my adult life time and I'm middle aged.
- incompatible 9y agoI was in the UK at the time: http://swanlowpark.co.uk/savings-interest-annual.jsp http://swanlowpark.co.uk/savings-interest-annual.jsp, but I'm sure I got better rates by shopping around.
- jamie_ca 9y agoGotta go back further than that. ING Direct (Canada) peaked at 5% on a savings account in mid 2000, and was above 4% from when they opened up in '97 to April '01. https://www.tangerine.ca/en/rates/historical-rates/index.html https://www.tangerine.ca/en/rates/historical-rates/index.htm... 3.5% in 2007 matches your bank's 1 year CD pretty well. It's now under 1% since mid 2015, but my RRSP account is up 40% since September... go figure.
- icedchai 9y agoI remember having a savings account at Emigrant Direct that was paying somewhere around 5%, back in 2006 or so. See https://www.fatwallet.com/forums/finance/579954 https://www.fatwallet.com/forums/finance/579954
- ajdlinux 9y agoI'm in Australia, back before the GFC a high-interest bank savings account would pay ~6%, inflation was ~3%...
- refurb 9y agoInterest rates and inflation are linked. It's not very helpful to get a 17% interest rate when inflation is 16% (1970's in the US). Your real return is still only 1%.