Topic '[Rant] A savings acct of 0.75% is now considered high-yield?' in forum 'Rants, Raves, and Praise' - dslreports.com

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Tue, 20 Mar 2012 14:07:54 EDT

cowboyro posted : Keeping the money in any account that doesn't give over 4% means losing money.
$10,000 today in the bank will be $10,400 in 1 year.
Each extra dollar you get in interest is basically taxed at your marginal rate (for someone who actually has money likely ~30%). $400*0.3=$120 tax.
You'll have $10,280 after tax.
The inflation is hovering around 2.9%. In one year you'll be able to buy what you'd buy today for $9990 using the $10,000 you put in the bank.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Tue, 20 Mar 2012 10:57:47 EDT

AVD posted :

said by Ripperjack:

That's why I kept my savings account back in Australia active. I'm getting 5.5% to 6% pa, on current Aussie interest rates.

then you have exposure to exchange rate fluctuations.
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Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Mon, 19 Mar 2012 16:00:26 EDT

Alcohol posted : Double tax?

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Mon, 19 Mar 2012 14:16:41 EDT

Ripperjack posted : That's why I kept my savings account back in Australia active. I'm getting 5.5% to 6% pa, on current Aussie interest rates.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Mon, 19 Mar 2012 07:11:29 EDT

thegeek posted :

said by Alcohol:

said by thegeek:

And I get 3.5% on a $100k 12 month CD.

Where

i'd tell you but then i'd have to kill you. it'd give away where i live and who i work for.

said by dvd536:

Can you lock in that 100K cd rate longer than 12 months?

i could but the rate isn't any better. that is my emergency shit hits the fan cash and i don't want it tied up for any longer.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Sun, 18 Mar 2012 23:19:36 EDT

Jackarino posted : +1

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Sun, 18 Mar 2012 23:13:35 EDT

Alcohol posted :

said by thegeek:

And I get 3.5% on a $100k 12 month CD.

Where
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Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Sun, 18 Mar 2012 16:08:46 EDT

dvd536 posted :

said by Jackarino:

I made a lot of $$ doing that. But this was in 2008

With house values in the tank currently those shows like flip this house aren't really doing as good as they make out but it makes for good television entertainment.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Sun, 18 Mar 2012 15:50:55 EDT

dvd536 posted :

said by thegeek:

My credit union is still paying 2% on balances over $10k. And I get 3.5% on a $100k 12 month CD. And youth CDs are paying 3% max $10k deposit.

Can you lock in that 100K cd rate longer than 12 months?

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Sun, 18 Mar 2012 08:44:40 EDT

anon posted :

said by acid343211:

Credit Unions give you more like 0,50%-0,75% :)

My mother's CU gives you 0.1% - »www.affinityfcu.org/site/rates.html

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Sat, 17 Mar 2012 23:12:33 EDT

Jackarino posted : I made a lot of $$ doing that. But this was in 2008

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Sat, 17 Mar 2012 11:32:35 EDT

dvd536 posted :

said by nonymous:

Another boom bust cycle but if dome correctly with enough cash on hand and know how to refurb and rent a house it may be good.

Thats how I make most of my money. buying foreclosed homes, fixing them up and renting them out. not really into flipping houses.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 22:33:12 EDT

Zoder posted : Because Treasuries are considered a safety bet. So if investors think the economy is improving they'll sell Treasuries and move their money into investments with higher rates of return.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 22:27:39 EDT

hoyleysox posted : Good points, mortgage rates move before savings rates, however, a "good" return on savings rates is relative and subjective. I read today that technical analysts observed a significant flow of $ from treasuries. Curious why the market behaved differently so recently after the fed stated their intent to hold rates steady until 2014.

edits intended for clarity, grammar, punctuation and spelling

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 22:02:12 EDT

Zoder posted : That would effect mortgages not savings accounts. The Fed is promissing to hold down short term rates till 2014. So unless unexpected core inflation increases force their hand ealier, don't look for a good return on savings accounts in the next 2 years.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 21:25:36 EDT

hoyleysox posted : Supposedly institutional investors are dumping treasuries for stocks, I expect savings rates to start rising and rising soon. Wonder when savings rates to exceed today's fixed income loan rates.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 21:14:48 EDT

acid343211 posted :

said by TheMG:

Considering I get less than 0.1% on my standard savings account, yeah, 0.75% is relatively high-yield.

Interest rates on savings accounts have really taken a huge dump over the last 10 years.

Fool!!!!
Credit Unions give you more like 0,50%-0,75% :)
Even more Depending what amount you have in the savings account.

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»www.bankrate.com/checking.aspx
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Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 19:41:41 EDT

nonymous posted : Savings accounts have never been the highest yielding in their time frame.
Stocks can be if chosen correctly. Some think if you have the knowledge buying and renting houses can be again. Another boom bust cycle but if dome correctly with enough cash on hand and know how to refurb and rent a house it may be good.
To make real money you have always needed to do more than just savings account.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 19:09:55 EDT

Zoder posted :

said by gateguy:

I have been musing on this for quite some time. The interest rates for a home loan in 1980 was around 11.5% source. Currently they are around 4.5%. In 1980 everyone had a savings account that paid 5% interest.

Now follow my thinking here, the home loan interest rate from 1980 is 2.5 times higher than today. Based on this, shouldn't the current interest rate for a savings account be 2%? (1980 - 5% / 2.5).

Seems to me that the interest rates are too low for savings accounts. i know the banks are pocketing the difference, but then again they are just greedy bastards.

Note I am not an accountant, so if you are an accountant and I am making a huge error please point it out, but use layman terms.

Mortgages are based on long term treasury rates. Savings is based on the short term rates. Short term is near zero, 10 year has been hovering around 2 %

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 16:29:32 EDT

I AM posted : »[Rave] Low interest auto loans

And this is the opposite.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 16:05:44 EDT

thegeek posted : My credit union is still paying 2% on balances over $10k. And I get 3.5% on a $100k 12 month CD. And youth CDs are paying 3% max $10k deposit.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 13:56:34 EDT

CylonRed posted : Not an accountant but I don't think you can use a ratio based on data from years ago and use it for the current year. I have a CU account and my money market is not hugely higher and I am part owner in the CU...

On the other hand - stock holders demand higher stock prices now - not just down the road therefore - companies will do what ever to make that happen.
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"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 13:43:47 EDT

gateguy posted :

said by CylonRed:

The very same things that give us cheap loans (mortgages, auto loans etc..) means low savings returns as well. So - based on the rates they are based on - they are high yield...

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 12:57:57 EDT

psafux posted :

said by AVD:

So are you using these funding websites? or did you open up your own loansharking business?

Ha! I use lendingclub for peer to peer lending, seeing about 18% return right now, it fluctuates depending how risky I want to get with my contributions. I have investments spread among several places as well, each with a diverse portfolio of high and low gain stocks. I started investing (401k) when I was 23.

As a sidenote, this is my 6500th post. Wow.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 12:22:43 EDT

AVD posted : So are you using these funding websites? or did you open up your own loansharking business?

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 12:16:51 EDT

psafux posted :

said by Alcohol:

ING went from 1.2% to 0.80% in less than a year. Time to move money out of the country.

They were a lot higher than that some time ago.

Started using private investing & consumer / peer lending after ING started dropping their rates.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 12:07:07 EDT

dcurrey posted : Savings is a joke. Seems it will be for some time now. Best option is stocks with decent yields.

Do have a couple reward checking accounts that are earning 3.03% and 1.75%.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 11:46:51 EDT

Alcohol posted : ING went from 1.2% to 0.80% in less than a year. Time to move money out of the country.
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Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 09:54:02 EDT

dvd536 posted : When most accounts are paying 0.05% to 0.10% yeah thats considered high yield.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 08:39:51 EDT

CylonRed posted : The very same things that give us cheap loans (mortgages, auto loans etc..) means low savings returns as well. So - based on the rates they are based on - they are high yield...
--
Brian

"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 04:32:23 EDT

freeze posted : I started investing a small percentage of my savings account in stocks after the rates for savings and CDs went below 1%.

I figure it would be a lot easier to get a better interest rate by simply ~~investing~~ gambling a few hundred dollars on strong stocks and leaving it be.

Granted I have one more thing to worry about when doing taxes...

Long story short, I am quite satisfied with my decision to 'invest' some of my savings account with stocks for the past few years.

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 03:12:27 EDT

Madness posted : Mine's @ 0.3%; only way I could that rate (or slightly better) would be to open a money-market!

Re: [Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 01:39:03 EDT

TheMG posted : Considering I get less than 0.1% on my standard savings account, yeah, 0.75% is relatively high-yield.

Interest rates on savings accounts have really taken a huge dump over the last 10 years.

[Rant] A savings acct of 0.75% is now considered high-yield?

Fri, 16 Mar 2012 01:15:06 EDT

StudioTech posted : Apparently so, if you've received recent mailings from Amex and other financial institutions advertising their savings and/or money market accounts. It wasn't that long ago (less than 10 years ago) where you could get one as high as 6%.