6 ms·
The other reason people aren’t saving is record low interest rates, while the rich can keep money in market accounts and get returns up to and over 5% until ext
by techdragon 4y ago
The other reason people aren’t saving is record low interest rates, while the rich can keep money in market accounts and get returns up to and over 5% until extremely recently the bank interest rates in many countries are under the rate of inflation and in many countries they still are.
Why put it in the bank if all that is happening is your money slowly becoming worth less rather than turning into more via interest in a savings account.
- rufus_foreman 4y agoIn the US, I Bonds are currently paying 9.62%.
- Nick87633 4y agoUp to $10k per person (more with certain workarounds) with other limitations.
- dcolkitt 4y agoAlmost anyone in America has access to low fee index investing at the push of a few buttons
- qgin 4y agoIt’s easier to open a Robinhood account than a savings account at a typical bank, tbh.
- flappyeagle 4y agoYou can buy $SPY on Robinhood
- anonuser123456 4y ago>while the rich can keep money in market accounts and get returns up to and over 5% Sure, if your money market fund is backed by junk bonds as collateral maybe. But that’s hardly the same as an FDIC insured deposit or UST collateralized fund. The yields on those are not great no matter how much money you have to invest.
- nradov 4y agoYou are confused. US Dollar money market accounts haven't yielded returns anywhere close to 5% for over a decade.
- MR4D 4y agoNot rich people in the US. https://www.schwab.com/money-market-funds https://www.schwab.com/money-market-funds https://www.morganstanley.com/wealth-investmentstrategies/ratemonitor https://www.morganstanley.com/wealth-investmentstrategies/ra...
- anm89 4y agoI think he's just saying they can put their money in the stock market. I thought what you thought when I first read this.
- imtringued 4y agoThis is incorrect. As people save more and consume less, interest rates get lower and lower. In fact, since people don't have to pay interest, they get to save more and more as the bank gets less and less of their money. Japan and Germany have the lowest interest rates and aren't known for saving less. Also, liquidity preference predicts that people will save an unlimited amount of money at 0% interest if they have sufficient income that exceeds how much they intend to spend.