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Three Generations
of Service
Picture of PHPaul
posted
I have a passbook savings account that I use to stash money in for a rainy day.

Currently, the balance is $8400. Since I paid off the tractor, my goal is to get that to a nice round $10,000.

Anyway, the statement came in today and my interest for this month is...wait for it...$0.07

You read that right. 7¢.

So in a year, even with compound interest, I'll earn less than a dollar.

Yes, I know of various vehicles to get better interest, but I need the liquidity. If the back yard turns into Turd Lake tomorrow, I'll need that money NOW. (Say...I wonder if J.G. Wentworth has copyrighted that... Big Grin )

Not really looking for solutions, it just pisses me off to let them use eight grand of my money for nothing.




Be careful when following the masses. Sometimes the M is silent.
 
Posts: 12761 | Location: Downeast Maine | Registered: March 10, 2010Reply With QuoteReport This Post
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.01% interest- Yeah I've got the same account.

I keep it there so I don't buy things on impulse since I have to go to the bank to get the money.


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The butcher with the sharpest knife has the warmest heart.
 
Posts: 12507 | Location: Bottom of Lake Washington | Registered: March 06, 2007Reply With QuoteReport This Post
Three Generations
of Service
Picture of PHPaul
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quote:
Originally posted by braillediver:
.01% interest- Yeah I've got the same account.

I keep it there so I don't buy things on impulse since I have to go to the bank to get the money.


That too. It'd be too tempting if it was in my checkbook.




Be careful when following the masses. Sometimes the M is silent.
 
Posts: 12761 | Location: Downeast Maine | Registered: March 10, 2010Reply With QuoteReport This Post
Fighting the good fight
Picture of RogueJSK
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I don't use my savings account as an investment. I use it to keep my "rainy day" stash easily separated.

I have an automatic 10% transfer from each paycheck from checking into savings. Then I don't touch the savings until a big purchase or emergency comes up.

I could achieve the same thing by withdrawing 10% each payday and stuffing it in the mattress, but this way it's all done automatically, plus I can tell with a glance at my online baking what my savings total is, and electronically transfer money from savings to checking if needed.
 
Posts: 25628 | Location: Northwest Arkansas | Registered: January 06, 2008Reply With QuoteReport This Post
Do the next
right thing
Picture of bobtheelf
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There's no incentive to save when they want you to spend to boost the economy.
 
Posts: 3302 | Location: Nashville | Registered: July 23, 2012Reply With QuoteReport This Post
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Picture of fpuhan
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One word: E*Trade (I think that's one word).

I have an E*Trade account. Part of it is cash, and the rest I've put into stocks. I can liquidate a stock at any time, add money to the "piggy bank" whenever I want, and withdraw funds as needed. I'm no genius, but overall, I've made money because the stocks have performed well. Over time, that's generally the case. I make sure I don't peek at my holdings every day, but I get a monthly statement, and even though one month I might show a decrease, my average annual growth is 8%-12%.




You can't truly call yourself "peaceful" unless you are capable of great violence. If you're not capable of great violence, you're not peaceful, you're harmless.

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Posts: 2857 | Location: Peoples Republic of North Virginia | Registered: December 04, 2015Reply With QuoteReport This Post
Big Stack
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Not only that, the government is cranking out money like crazy. Look at the chart linked below (it's live, so I can't post the image.)

https://fred.stlouisfed.org/series/M1

Now the economy is in a huge contraction, so even the nearly infinite money creation (it's electronic, now so they don't even need ink and paper) doesn't seem to be creating inflation. But will they stop in time to prevent it?
 
Posts: 19856 | Registered: November 05, 2003Reply With QuoteReport This Post
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Picture of sigcrazy7
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Why pay you interest when they can borrow money for free from the Fed? The Fed just makes the money. I really don’t understand how gold isn’t going through the roof. If baffles me.



On a mote of dust, suspended in a sunbeam.
 
Posts: 6611 | Location: Utah | Registered: December 18, 2008Reply With QuoteReport This Post
Freethinker
Picture of sigfreund
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quote:
Originally posted by RogueJSK:
I don't use my savings account as an investment. I use it to keep my "rainy day" stash easily separated.


Same here. I don’t want large sums of money piled up in a home safe.

In addition, all interest rates are low. My bank and credit unions aren’t making a lot of money from what I have deposited with them either. In fact, my concern is that one day they’ll decide that keeping my accounts open costs them more than they make from what I have deposited and will start charging me for the security and bookkeeping.

But although it’s not something I have any influence over, I remember high interest rates and high rates of inflation. I prefer low rates of both.




“The fundamental cause of trouble in the world today is that the stupid are cocksure while the intelligent are full of doubt.”
— Bertrand Russell
 
Posts: 42449 | Location: 10,150 Feet Above Sea Level in Colorado | Registered: April 04, 2002Reply With QuoteReport This Post
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You already know this but you aren’t putting it there for the interest. It’s there so you aren’t paying credit card interest when you have to put 4 tires on your car and the a/c goes out in the same week. It’s all the money over 8400 (if that’s your number) that you need to make bank on.
 
Posts: 2909 | Registered: June 18, 2005Reply With QuoteReport This Post
Experienced Slacker
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Perhaps use the money to start your loan sharking career that I bet you've daydreamed about a time or two.

Then you'd get interest in spades. Big Grin
 
Posts: 6512 | Registered: May 12, 2004Reply With QuoteReport This Post
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I will be Mr. Glass half full.

No you didn't make a dime from the bank,
But,

You didn't go " in the hole" by renting a safe deposit box, either.

$24.00 per year, here in tiny town





Safety, Situational Awareness and proficiency.



Neck Ties, Hats and ammo brass, Never ,ever touch'em w/o asking first
 
Posts: 50865 | Location: Henry County , Il | Registered: February 10, 2004Reply With QuoteReport This Post
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Just wait until we're at negative interest rates and you have to pay to bank to keep your money.
 
Posts: 1822 | Registered: October 24, 2007Reply With QuoteReport This Post
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Be careful as for what you ask.

My early 80’s 14% CD was good, but do you want a mortgage at 18%?

For the last couple of decades, our economy, stock market and housing market have been propped up by the artificially low rate environment.
 
Posts: 403 | Registered: June 24, 2019Reply With QuoteReport This Post
Vi Veri Veniversum Vivus Vici
Picture of ChuckFinley
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Either don't sweat it or ladder CDs every 2 or 3 months so you get a little more interest, but can have some access at intervals.




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"Of all tyrannies, a tyranny exercised for the good of its victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end, for they do so with the approval of their own conscience." -- C.S. Lewis
 
Posts: 5166 | Location: District 12 | Registered: June 16, 2012Reply With QuoteReport This Post
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The savings account interest rates have been ridiculous for a few years now (including CD's, bonds, etc.) It's also the reason I think the stock market is over valued as it is.
 
Posts: 20164 | Registered: June 12, 2005Reply With QuoteReport This Post
His Royal Hiney
Picture of Rey HRH
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The incentive to save is always there. Be glad interest rates are low. Bank interest rates for savings lag inflation rate. Inflation will eat the value of your savings faster than any interest you might earn.

It’s during times of high inflation that takes away the incentive to save.



"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.
 
Posts: 15903 | Location: Bay Area, CA | Registered: March 24, 2011Reply With QuoteReport This Post
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quote:
Originally posted by bendable:
I will be Mr. Glass half full.

No you didn't make a dime from the bank,
But,

You didn't go " in the hole" by renting a safe deposit box, either.

$24.00 per year, here in tiny town


Free with a deposit account @ both banks I deal with. So...


A Perpetual Disappointment...
 
Posts: 2371 | Location: BFE, Ohio | Registered: August 05, 2010Reply With QuoteReport This Post
Freethinker
Picture of sigfreund
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quote:
Originally posted by Rey HRH:
It’s during times of high inflation that takes away the incentive to save.


In a nut shell.




“The fundamental cause of trouble in the world today is that the stupid are cocksure while the intelligent are full of doubt.”
— Bertrand Russell
 
Posts: 42449 | Location: 10,150 Feet Above Sea Level in Colorado | Registered: April 04, 2002Reply With QuoteReport This Post
His diet consists of black
coffee, and sarcasm.
Picture of egregore
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If your bank doesn't offer it, banks like Capital One or American Express offer rates online in the neighborhood of 1.5%, no minimum balance. You could put a portion, say, a couple of grand, of your money into one of those, or a CD, and make a little more money. And 7 cents (84 cents a year) on $8400? Confused With my credit union I made a buck and a half last year on a $2000 balance. I'm on track to make almost $2 this year. Maybe you need one of those instead of your current bank.

Besides my savings account, for some time I've been putting a little into a "cash cache" to keep at home, in my gun safe. I try to keep it around a grand. It need not be for a true emergency. I've dipped into it to buy a tool for work, a battery for my car, and a gun that was on sale. Razz
 
Posts: 24016 | Location: Johnson City/Elizabethton, TN | Registered: April 28, 2012Reply With QuoteReport This Post
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