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Who are you referring to when you refer to “savers”? Interest rates have been basically 0 for a very long time for retail bank customers.

AznHisoka 7y ago
Short term CD rates have hovered around 2%. They are not completely liquid but if you are saving for the medium term, they are a valid investment vehicle.
- RickJWagner 7y ago
  Marcus recently had a 'high interest savings' program where the base rate was 2%, you got a short-term bonus of another percent for signing up. (So effectively 3%). With limits and early withdrawal penalties, though. I think the program's ended, but it was nice when it was available.
- cylinder 7y ago
  CDs / money market are essentially risk free. I don't understand why people expect a rate of return above inflation without taking any risk. This is a fundamental component of capitalism, and most people have no understanding of it.
quaquaqua1 7y ago
Have been getting 1% monthly uncapped for almost 8 years now on my checking account.
- undefined3840 7y ago
  That is an exception, not the rule. If you have Chase, Citi, BofA, etc. it’s been like .01% for 10 years.
  - basementcat 7y ago
    If you're willing to move your funds to another institution, check out https://www.depositaccounts.com https://www.depositaccounts.com to see how much you could be earning with your money.
  - quaquaqua1 7y ago
    I understand where you are coming from, but my bank has something like 100B USD in assets under management, so I think such a plan is available to millions of people
  - icedchai 7y ago
    Consumer banks barely pay anything. It’s awful. I moved all my long term cash to online banks and investment accounts.
- icedchai 7y ago
  Where are you getting 1% monthly? I’m getting like 2% yearly from Ally.
- tanr54ok 7y ago
  That’s over 12% APY. I think you’re either getting scammed or full of it.
  - quaquaqua1 7y ago
    Sorry, I should have been a lot more clear when I wrote this post last night. 1% compounded monthly is what I intended to say, as opposed to compounded continuously or yearly.
    - BoiledCabbage 7y ago
      You mean 1 percent annual return compounded monthly? Or 1/12th of a percent monthly return compounded monthly?
      - quaquaqua1 7y ago
        1% APY compounded monthly, which is roughly below inflation. And it's taxed of course. Isn't your second statement the same as the first? 1200 dollar balance returns $1 per month, or $12 per year?
        BoiledCabbage 7y ago
        Technically (1 + (x/12))^12 != (1 + x) In this case where x = 1% (or .01) they're so close it almost doesn't matter. For x = 10% it's a lot clearer. That said, it's also not equal to (1 + y) ^ 12, where y is whatever value is needed to have (1 + y) ^ 12 = 1 + x.
- caseysoftware 7y ago
  Where? Even with something like Lending Club, overall ROI bounces between 7-10% depending on default rates. If you're getting 12% annually on anything, count me in.
turk73 7y ago
No, rates were going up in lockstep with fed tightening and peaked late last year. I was finding 6-12 mo. CDs with nearly 3% coupon. Then everything fell apart back in the Spring and it has continued its downward trajectory until the yield curve inverted and now we're looking at all kinds of fucked up rates and short term CDs are like 1.9% but some of those banks are, well, you'd be crazy to do business with some of those names. I watch corporate bonds and the same thing is going on. It's a giant shit show right now. Things are gradually heading in an ominous direction and I did reallocate my investments some just in case. The problem is, you can't rely on bonds anymore, either. So I'm in MM funds at the moment, and those have shitty returns and high fees. The next defensive stage downward for me is precious metals hidden at home. I hate to even imagine doing that, but I won't pay negative rates on savings when gold and silver are available.

AznHisoka 7y ago

Short term CD rates have hovered around 2%. They are not completely liquid but if you are saving for the medium term, they are a valid investment vehicle.

RickJWagner 7y ago
Marcus recently had a 'high interest savings' program where the base rate was 2%, you got a short-term bonus of another percent for signing up. (So effectively 3%). With limits and early withdrawal penalties, though. I think the program's ended, but it was nice when it was available.
cylinder 7y ago
CDs / money market are essentially risk free. I don't understand why people expect a rate of return above inflation without taking any risk. This is a fundamental component of capitalism, and most people have no understanding of it.

quaquaqua1 7y ago

Have been getting 1% monthly uncapped for almost 8 years now on my checking account.

undefined3840 7y ago
That is an exception, not the rule. If you have Chase, Citi, BofA, etc. it’s been like .01% for 10 years.
- basementcat 7y ago
  If you're willing to move your funds to another institution, check out https://www.depositaccounts.com https://www.depositaccounts.com to see how much you could be earning with your money.
- quaquaqua1 7y ago
  I understand where you are coming from, but my bank has something like 100B USD in assets under management, so I think such a plan is available to millions of people
- icedchai 7y ago
  Consumer banks barely pay anything. It’s awful. I moved all my long term cash to online banks and investment accounts.
icedchai 7y ago
Where are you getting 1% monthly? I’m getting like 2% yearly from Ally.
tanr54ok 7y ago
That’s over 12% APY. I think you’re either getting scammed or full of it.
- quaquaqua1 7y ago
  Sorry, I should have been a lot more clear when I wrote this post last night. 1% compounded monthly is what I intended to say, as opposed to compounded continuously or yearly.
  - BoiledCabbage 7y ago
    You mean 1 percent annual return compounded monthly? Or 1/12th of a percent monthly return compounded monthly?
    - quaquaqua1 7y ago
      1% APY compounded monthly, which is roughly below inflation. And it's taxed of course. Isn't your second statement the same as the first? 1200 dollar balance returns $1 per month, or $12 per year?
      - BoiledCabbage 7y ago
        Technically (1 + (x/12))^12 != (1 + x) In this case where x = 1% (or .01) they're so close it almost doesn't matter. For x = 10% it's a lot clearer. That said, it's also not equal to (1 + y) ^ 12, where y is whatever value is needed to have (1 + y) ^ 12 = 1 + x.
caseysoftware 7y ago
Where? Even with something like Lending Club, overall ROI bounces between 7-10% depending on default rates. If you're getting 12% annually on anything, count me in.

turk73 7y ago

No, rates were going up in lockstep with fed tightening and peaked late last year. I was finding 6-12 mo. CDs with nearly 3% coupon. Then everything fell apart back in the Spring and it has continued its downward trajectory until the yield curve inverted and now we're looking at all kinds of fucked up rates and short term CDs are like 1.9% but some of those banks are, well, you'd be crazy to do business with some of those names. I watch corporate bonds and the same thing is going on. It's a giant shit show right now. Things are gradually heading in an ominous direction and I did reallocate my investments some just in case. The problem is, you can't rely on bonds anymore, either. So I'm in MM funds at the moment, and those have shitty returns and high fees. The next defensive stage downward for me is precious metals hidden at home. I hate to even imagine doing that, but I won't pay negative rates on savings when gold and silver are available.