Gah, emigrantdirect dropped to 4.65% APY!

Eeezee

Diamond Member
Jul 23, 2005
9,922
0
0
Anyone else mad about steadily dropping interest rates? It's still a fine rate, but hopefully it stops dropping.

I thought about opening an eTrade account, but if they really did go bankrupt then it'd probably be a PITA to get my money back even if it is FDIC insured.
 

Slew Foot

Lifer
Sep 22, 2005
12,379
96
86
Welcome to Ben Bernake's world. The f'n banks beg for "cash infusions" and then give themselves the biggest bonuses in history. Guess who ends up paying for it. You do, with lower savings returns and higher inflation.

 

ManSnake

Diamond Member
Oct 26, 2000
4,749
1
0
That's why you need to take on gambling so you don't let the value of your money depreciate!
 

Imdmn04

Platinum Member
Jan 28, 2002
2,566
6
81
They will keep dropping if the Feds continue to cut its rates, simple economics.
 

V00DOO

Diamond Member
Dec 2, 2000
3,817
2
81
Originally posted by: Slew Foot
Welcome to Ben Bernake's world. The f'n banks beg for "cash infusions" and then give themselves the biggest bonuses in history. Guess who ends up paying for it. You do, with lower savings returns and higher inflation.

I concur 100%. It'll get worse with the Fed's expected to drop rates again in 2008 to bail out the big banks. Good job Helicopter Ben!:|

 

Eeezee

Diamond Member
Jul 23, 2005
9,922
0
0
Originally posted by: SoulAssassin
CD time

I can't do that, barely have enough to pay the rent as it is :p Keeping all of my cash in a savings account at least gives me a few extra bucks at the end of the month.
 

ponyo

Lifer
Feb 14, 2002
19,688
2,810
126
Originally posted by: Eeezee
Originally posted by: SoulAssassin
CD time

I can't do that, barely have enough to pay the rent as it is :p Keeping all of my cash in a savings account at least gives me a few extra bucks at the end of the month.

If that's the case, is few pennies in interest really going to effect you? Lower interest rate is more beneficial to low or non-saver like yourself.
 

HombrePequeno

Diamond Member
Mar 7, 2001
4,657
0
0
Hopefully that will be coupled with lower inflation due to banks cutting back their lending. Then the real interest rate will remain similar to what it was before. However, core inflation edged up in Q3 to the very top of the acceptable level...
 

Eeezee

Diamond Member
Jul 23, 2005
9,922
0
0
Originally posted by: Naustica
Originally posted by: Eeezee
Originally posted by: SoulAssassin
CD time

I can't do that, barely have enough to pay the rent as it is :p Keeping all of my cash in a savings account at least gives me a few extra bucks at the end of the month.

If that's the case, is few pennies in interest really going to effect you? Lower interest rate is more beneficial to low or non-saver like yourself.

Explain how that makes sense...
 

sciencewhiz

Diamond Member
Jun 30, 2000
5,885
8
81
Originally posted by: Eeezee
Originally posted by: Naustica
If that's the case, is few pennies in interest really going to effect you? Lower interest rate is more beneficial to low or non-saver like yourself.

Explain how that makes sense...

lower rates for credit.
 

ponyo

Lifer
Feb 14, 2002
19,688
2,810
126
Originally posted by: Eeezee
Originally posted by: Naustica
Originally posted by: Eeezee
Originally posted by: SoulAssassin
CD time

I can't do that, barely have enough to pay the rent as it is :p Keeping all of my cash in a savings account at least gives me a few extra bucks at the end of the month.

If that's the case, is few pennies in interest really going to effect you? Lower interest rate is more beneficial to low or non-saver like yourself.

Explain how that makes sense...


What's there to explain? You hardly have any savings so 1/2 point drop in savings interest rate isn't going to hurt you one bit. Really, is it going to matter if you get $5 in interest a month instead of $5.25?

Lower interest rate means lower rates on credit cards, car loans, personal loans, home equity loans and lines, etc. Stuff that really matters since the dollar amount we're talking about is much bigger than what's in your savings. Considering most people are up to their eyeballs in debt and will take out more debts, lower rate will help them. The savings in finance charges will more than offset any small loss from savings due to interest rate drop.

Fed will drop the Fed and discount rate further next year so expect another penny or two less a month from your savings.
 

ponyo

Lifer
Feb 14, 2002
19,688
2,810
126
Originally posted by: FrustratedUser
Originally posted by: SoulAssassin
CD time

QFT

No, it's pay off all your existing debt time with savings. We're going to be in for some rough time next year and the best way to thrive in this kind of environment is to be debt free or close to it as possible.
 

K1052

Elite Member
Aug 21, 2003
48,783
38,680
136
meh, so what

I only use high interest savings to keep my emergency reserve and property tax money. The rest goes into my brokerage account to buy various index ETFs.
 

Svnla

Lifer
Nov 10, 2003
17,986
1,388
126
I am going to put all my money into Countrywide because they are paying 5.30% APY and it is FDIC insured.

I don't work or know anyone who works for Countrywide.

Edit: The above rate is for 10K or more deposit.
 

thomsbrain

Lifer
Dec 4, 2001
18,148
1
0
Etrade is currently at 5.05%, and offering 6-month CDs for 5.18%.

Just another reason they are tops for online savings, IMO. At this point, I think it is highly unlikely that they will be bought or go bankrupt.
 

ponyo

Lifer
Feb 14, 2002
19,688
2,810
126
Originally posted by: Svnla
I am going to put all my money into Countrywide because they are paying 5.30% APY and it is FDIC insured.

I don't work or know anyone who works for Countrywide.


Countrywide and Etrade are desperate for deposits and money. Hence the higher rate.