CD - Certificate of Deposit Interest Rates --Ugggg !

[brin]

Anybody else disgusted ? Just who is getting our money ? Just had a CD mature...the new offer is 0.85% interest for 14 months...or 1.00% for 19 months....give me a break...

The Mrs. and I are at the point of even wondering how good the FDIC backing is really worth...am I Nuts or anyone else bothered just a bit..?

As more money is printed the value of our savings are going down as the currency is diluted....Nice Huh ?

 

[Fixemall]

Might be better off putting your money into hard assets, I backed two businesses this year and held a mortgage for a Bankrupt/disabled vet. Two of my three are bringing in good money and the third will just break even. I would go talk to your accountant and see what he or she is doing with their cash. Only CD's I have are shiny pieces of plastic that hold music....

 

[MoKelly]

Yes ... interest rates on anything safe (investment grade ratings or CD's insured by the FDIC) are at rock bottom right now vs. history. It is a matter of supply and demand ... too many folks want bonds and CD's vs. other investment alternatives. So, banks don't have to offer much to get the money.

On the other hand, you can get a fixed mortgage at 3.25% right now.

That is less than my parents borrowed to buy their first house in 1958.:confused2:

MoKelly

 

[keegs]

Bogleheads Investing Advice and Info

 

[bp fick]

Zero percent on a tractor purchase? Sure. 3.5% on a mortgage? Possible. Getting more for your savings, in this environment? Not too likely.

Yes, it discouraging because it isn't keeping up with the reported inflation. Stock market is a gamble. Where to invest, oh, where to invest....

Retirement funds just cannot be risked in high wire acts, imho.

 

[brin]

Zero percent on a tractor purchase? Sure. 3.5% on a mortgage? Possible. Getting more for your savings, in this environment? Not too likely.

Yes, it discouraging because it isn't keeping up with the reported inflation. Stock market is a gamble. Where to invest, oh, where to invest....

Retirement funds just cannot be risked in high wire acts, imho.

BP - I totally agree with regarding retirement funds ...risk is just not worth it...it is sickening though..whoever thought interest on savings would be less than 5% ...and that is low if you look back over the last 40 yrs. or so...just shows how serious a situation the country is in...

 

[ultrarunner]

A couple of thoughts...

Local Bank is literally paying nothing and started implementing lots of new fees where nothing existed before... like on checking... had lifetime free checking from 1980 that they will no longer honor... long story.

Anyway, opened a Chevron Credit Union Account that is paying 8/10 of a percent for money in my checking... 9 times more than the bank for checking and 1/10 higher for the 9 month CD...

Several friends invested substantial amounts in deeds of trusts... local Bay Area Company with a 30 year track record that last night on the news in in BK with 700 million dollars in exposure...

Enough to make a person want to stuff their mattress and be done with it...

 

[KTurner]

As more money is printed the value of our savings are going down as the currency is diluted....Nice Huh ?

Inflation - It's how the government taxes the money you put in a coffee can and buried in the back yard.

Keith

 

[brin]

Inflation - It's how the government taxes the money you put in a coffee can and buried in the back yard.

Keith

Yes I know...no different that just taking our money...every time they fire up the printing presses and dilute the dollar...I am risk averse at this point though..makes it more challenging to get a return ...

 

[houstonscott]

Anybody else disgusted ? Just who is getting our money ? Just had a CD mature...the new offer is 0.85% interest for 14 months...or 1.00% for 19 months....give me a break...

The Mrs. and I are at the point of even wondering how good the FDIC backing is really worth...am I Nuts or anyone else bothered just a bit..?

As more money is printed the value of our savings are going down as the currency is diluted....Nice Huh ?

Yes, interest rates are too low, but if the Federal Government let them go up they couldn't afford it and would default immediately, and that is why they are at zero. Normal interest rates bankrupts the USA right now. There really is no good scenario for the situation the US is in, hold on to gold, silver.

HS