Just Got Another Notice My Interest Rate Is Going Down Again.

fmdog44

fmdog44

Well-known Member
Location
Houston, Texas
Ally Bank just emailed me saying my savings rate is now 1.70% and I'm sure I will get notices from other banks. Unless you need liquidity buy CDs instead of savings even though one year CDs won't be much higher.
 

I'm aware of the cost of holding cash but I'm also painfully aware of situations in my past where I didn't have cash. I would much rather have cash on hand and not need it than need cash and not have it.

I look at the overall return of my cash and mutual funds combined. When I do that I'm really only sacrificing a few basis points of the total return for my own peace of mind.
 

Money in the bank is just "warehoused". The paltry returns are almost meaningless. The banks give the customer 1.5%, or less, and invest that money for returns of 5 to 10 times that amount.
It's all determined by the Federal Reserve rates....which are trying desperately to avoid our nation going bankrupt due to the ballooning National Debt.
 
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I keep $1000.00 in a deposit account in case I am out and not near the house, I can grab some money, if needed. For what my net return would be if I put everything in a savings account, it would not be worth the effort.
 
we keep a a good couple of thousand locally in a bank . we already had an attempted hack on a brokerage account . the account was our main account for bill paying . it took two weeks to re-establish everything , get new checks , cards and accounts .

so having money to work with locally can be important
 
I only keep an emergency fund in a bank money market so whatever interest rate they pay me (currently 1.9%) is just fine. The cash I keep on hand in my personal safe earns no interest but it sure feels good to have it there.

The main portion of my assets are held in well-diversified funds managed by an independent professional. Many of my funds mirror the ones he invests his money in. Since investing with him about 12 years ago my funds have more than doubled.
 
fmdog44 said:
Ally Bank just emailed me saying my savings rate is now 1.70% and I'm sure I will get notices from other banks. Unless you need liquidity buy CDs instead of savings even though one year CDs won't be much higher.
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if your bank has better CD rates now that the feds have lowered the interest anyway, I'd go for it. We have 2 years at 2-1/2% and I have a friend that has 5 year CDs at 3-1/2%. Usually, if you need to break into one you only lose one quarter of a year interest penalty. At least that's what our bank is.
 
I have some 6 month CD's that are paying 2.0-2,2%.

But when they mature I think I'm just going to put them into my money market account that is currently paying 0.55%,

I'm in that window where every additional dollar of interest I get also ups the portion of my Social Security that is taxable by about a buck. So it's really not worth it to me.
 
I remember getting a pleading call when I closed my brokerage account in ‘93. The broker was forecasting much higher earnings and told me I was making a huge mistake. I bought a car junk yard with borrowed money. Used the $48k from the brokerage account to buy junk cars at auction for inventory and improved my family’s life many fold. Son has the business now. I try to keep $20k in my checking account at all times and blow the rest on anything enjoying the remaining years😊
 


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