Announcement

Collapse
No announcement yet.

Pathetic Savings Account Change

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Drake3287
    replied
    Originally posted by disneysteve View Post

    I don’t see the point of locking up money in a CD when a savings account is paying the same amount. There’s no benefit to that.
    Correct, I should have more specific. Looking to do a .50% savings accounts next, not a CD. The minute one of these online banks offer's bonus money again I'll switch it over. At least my stocks are doing well enough to cover the difference. Like I said, I've already passed any goal I had sometime ago. Anything now is gravy money.

    Leave a comment:


  • scfr
    replied
    Originally posted by Petunia 100 View Post

    You can get that same increase again by switching online banks. There are several paying 0.5% on savings accounts.
    And you could consider putting some in a CD with a higher rate, depending on when you think you'll need the money.
    Just one example, Nasa FCU is offering a 49-month CD at 1.35% APY. The EWP is 18 months. As long as you keep the CD 28 months or longer, you'll beat that 0.5% Petunia 100 mentioned.
    Is it a great rate? NOPE. But if you want those funds to be FDIC insured, there may be ways to make a bit more, and it's not at all pathetic to want your cash to work a little bit more productively.

    Leave a comment:


  • scfr
    replied
    Originally posted by james.hendrickson View Post


    That said, crypto is the wild west right now, so I'm gradually learning more.

    If it were 1850, probably these dudes would be investing in it (obligatory photo of wild west dudes).

    Love the power lines and automobiles and people in modern garb, not to mention the scale of the "wild west" dudes compared to everything else! Is this meant to be a commentary on the authenticity of BlockFi?

    Leave a comment:


  • james.hendrickson
    replied
    Originally posted by BobbySands View Post
    James, What is Block Fi? I've heard of it but never really looked into it
    Bobbi, per crunchbase, BlockFi is:

    BlockFi is a secured non-bank lender that offers USD loans to crypto-asset owners who collateralize the loan with their crypto-assets. Their products bring additional liquidity to the blockchain asset sector and meet the needs of both individuals and institutions holding blockchain assets. BlockFi holds clients' Bitcoin and Ether with a

    registered custodian and issues loans in USD to their bank accounts. Currently operating in beta launch, lending in 35 US states to retail investors and companies.

    BlockFi’s mission is to provide liquidity, transparency, and efficiency to digital financial markets by creating products that meet the needs of consumers and corporations across the globe. They leveraging a sophisticated infrastructure that integrates with multiple blockchains, they plan to expand their product set based on their retail and institutional client's needs.


    From crunchbase.

    I'm seeing ALL the cryptolenders are paying at least 4% on their US dollar deposits. BlockFi is doing it, so it coinbase, and most of the others I've heard of. I suspect what they are doing is charging people who want to borrow using their cryptocurrency as collateral, and then passing a chunk of the fees onto their depositors. I don't know how on the up and up it is, so I've only got about $50 in BlockFi.

    That said, crypto is the wild west right now, so I'm gradually learning more.

    If it were 1850, probably these dudes would be investing in it (obligatory photo of wild west dudes).


    Leave a comment:


  • BobbySands
    replied
    James, What is Block Fi? I've heard of it but never really looked into it

    Leave a comment:


  • disneysteve
    replied
    Originally posted by kork13 View Post

    No intention to direct any inference toward yourself personally, I only meant a generic "you". I was only pointing out that relative to today, 12% is certainly a dramatic difference, but the context of the financial climate at the time lessens the impact of such high rates.
    I remember those days well. Going to the banks with my dad to buy those 12 or 13% CDs. Yes inflation was high but that was temporary and how much inflation impacts you depends on your lifestyle and shopping habits. Plus if you bought a 5 or 7 or even 10 year CD you made out great.

    Leave a comment:


  • kork13
    replied
    Originally posted by myrdale View Post

    I am sorry you saw my post as being dramatic, I did not intend it to be such. And your statement is false, I never said I had a CD earning 12%.
    No intention to direct any inference toward yourself personally, I only meant a generic "you". I was only pointing out that relative to today, 12% is certainly a dramatic difference, but the context of the financial climate at the time lessens the impact of such high rates.

    Leave a comment:


  • james.hendrickson
    replied
    Originally posted by Petunia 100 View Post

    I agree, although it is possible that savings account rates could go even lower.
    Petunia, I'm with Disneysteve on this one. Interested rates are very, very low at this point. Its unlikely that the base rate is going to go much lower.

    Leave a comment:


  • myrdale
    replied
    Originally posted by kork13 View Post
    That's all nice and dramatic to say you had a CD earning 12%.
    I am sorry you saw my post as being dramatic, I did not intend it to be such. And your statement is false, I never said I had a CD earning 12%.

    Leave a comment:


  • disneysteve
    replied
    Originally posted by Petunia 100 View Post

    I agree, although it is possible that savings account rates could go even lower.
    True, though with the Fed rate essentially at zero, it's very unlikely unless the US goes to negative rates (as other countries have done).

    Leave a comment:


  • Petunia 100
    replied
    Originally posted by disneysteve View Post

    I don’t see the point of locking up money in a CD when a savings account is paying the same amount. There’s no benefit to that.
    I agree, although it is possible that savings account rates could go even lower.

    Leave a comment:


  • disneysteve
    replied
    Originally posted by Drake3287 View Post

    I'm in the same situation. I already hit our goal of saving/investing so anything else is gravy plus I sleep better at night knowing my low rate CD's will always be there. Just waiting for another of my CD's to roll over to a .50%! Feel sorry for older people that actually live off these rates, my parents certainly did years ago.
    I don’t see the point of locking up money in a CD when a savings account is paying the same amount. There’s no benefit to that.

    Leave a comment:


  • Drake3287
    replied
    Originally posted by Fishindude77 View Post
    I keep a CD ladder despite the poor rate of return. That money is safe and won't ever lose, like you could with other investments.
    Good to have money in a variety of different things.
    I'm in the same situation. I already hit our goal of saving/investing so anything else is gravy plus I sleep better at night knowing my low rate CD's will always be there. Just waiting for another of my CD's to roll over to a .50%! Feel sorry for older people that actually live off these rates, my parents certainly did years ago.

    Leave a comment:


  • kork13
    replied
    Originally posted by myrdale View Post
    I do remember as a kid hearing relatives talk about having CD's as their retirement accounts. At a peak of 12% that wouldn't have been to bad of a plan. As low as rates are today, I am not convinced they are worth the effort.
    That's all nice and dramatic to say you had a CD earning 12%... But what was inflation at the same time? Coming off a high above >14% inflation in 1980. Those CD rates were basically just a few years delayed behind the massive inflation rate of the period. (for those curious, the "dividend yield" line reflects the average dividend of the S&P 500.)
    Click image for larger versionName:	Dividend-Yield-vs-PRice-Inflation-Chart.pngViews:	0Size:	59.8 KBID:	726116

    Leave a comment:


  • Petunia 100
    replied
    Originally posted by myrdale View Post
    I do remember as a kid hearing relatives talk about having CD's as their retirement accounts. At a peak of 12% that wouldn't have been to bad of a plan. As low as rates are today, I am not convinced they are worth the effort.
    Inflation was double digits as well, so it wasn't a great way to grow your money then either.

    Leave a comment:

Working...
X