Big duh
Camellia Sinensis
trying to figure out ways to get people to save more money. Do you think
that maybe if they paid more than .4 percent interest on a regular savings
account or .8 on a "long term CD" people might be more tempted? I mean, we
are talking less than ONE PERCENT! Banks have no problem charging their
customers outrageous fees for everything from using another banks ATM,
overdraft fees, late fees, over limit fees or up to 29% interest on credit
cards, but seem surprised that we aren't racing to the bank to pour more
money into savings accounts. That isn't rocket science. I can remember
banks paying 4 1/2% interest on a passbook saving account back in the 50's
and early 60's. If the banks weren't so damned greedy now people might
think about saving a little money. At today's interest rates you might as
well stuff it under your mattress.
VFW
"Camellia Sinensis" <csgre...@hotmail.com> wrote:
where is that mattress?
--
Hint; Enjoy the moment !
Michael Black
Huh?
You're saying it's better to spend money than get little interest. But,
if the point is to have money, you are better off saving it whatever
the interest than spending it.
Lots of people not only are not saving, they are spending more than they
should. They want things, and they want them now, so they buy on credit
and then pay later or go bankrupt to catch up. They aren't doing that
because the banks aren't paying much interest on savings, it's a whole
different matter.
If I put that ten dollars in the bank, I'll have it at some point when I
need it, whether it grows or not. If I spend that ten dollars right now
I won't have it for when I might really need it.
Michael
BigDog1
wrote:
Well, your statement that it isn't rocket is correct, but not in your
context. People who have to pay overdraft fees, late fees, and over
limit fees lack discipline and are financially irresponsible. And
anyone who is using a credit card with a 29% interest rate must have a
pretty crumby FICO score.
What's not rocket science is that if you live within your means, pay
your bills on time, and plan your cash needs properly, you won't need
to worry about any of those charges. And, as Michael pointed out, not
saving in light of low interest is about as foolish a theory as I've
ever heard (see my comment above).
Vic Smith
I doubt he's personally worried about the fees.
His beef is with the low interest rates, which *do* discourage savings
*in a bank.*
If your getting hardly any return for your money there isn't much
difference in keeping it in a bank or under a mattress.
What you're all missing is that Wall Street guys are in charge of
monetary policy and interest rates.
The lower the interest rate in banks, the more likely people are to
gamble their money in the stock market, and keep the stock market
bubble inflated.
Of course they can say they want to keep rates down to avoid the
continuing wave of variable rate home loan foreclosures.
And that argument does hold some water.
The economy is between a rock and a hard place.
Current interest rates are an unnatural joke, and anybody who's been
around a while knows it.
--Vic
--Vic
The Henchman
"Michael Black" <et...@ncf.ca> wrote in message
news:Pine.LNX.4.64.10...@darkstar.example.net...
> On Thu, 18 Feb 2010, Camellia Sinensis wrote:
>
>> There was a news story on Northwest News today stating that banks were
>> trying to figure out ways to get people to save more money. Do you think
>> that maybe if they paid more than .4 percent interest on a regular
>> savings account or .8 on a "long term CD" people might be more tempted?
>> I mean, we are talking less than ONE PERCENT! Banks have no problem
>> charging their customers outrageous fees for everything from using
>> another banks ATM, overdraft fees, late fees, over limit fees or up to
>> 29% interest on credit cards, but seem surprised that we aren't racing to
>> the bank to pour more money into savings accounts. That isn't rocket
>> science. I can remember banks paying 4 1/2% interest on a passbook
>> saving account back in the 50's and early 60's. If the banks weren't so
>> damned greedy now people might think about saving a little money. At
>> today's interest rates you might as well stuff it under your mattress.
> Huh?
>
> You're saying it's better to spend money than get little interest. But,
> if the point is to have money, you are better off saving it whatever
> the interest than spending it.
He didn't say anything about spending money.
I Invest it into index funds or a bond fund with a few stocks on the side.
Savings accounts cost you money because of inflation. I keep about 4 months
savings cash in a bank account and the rest is invested. Savings account
interest is taxed at the highest income rate. Capital gains are taxed at
50% less of income and dividends are taxed 75% less of income , at least in
Canada. Keeping most of your savings in a savings account is the worst
investment choice one can make for mid to long term investing in this day
and age.
Rod Speed
Like hell they are.
> The lower the interest rate in banks, the more likely people are to
> gamble their money in the stock market, and keep the stock market
> bubble inflated.
Utterly mangled all over again.
> Of course they can say they want to keep rates down to avoid the
> continuing wave of variable rate home loan foreclosures.
'Wall Street guys' dont determine those interest rates either.
> And that argument does hold some water.
> The economy is between a rock and a hard place.
Nope, it will recover fine, just like it did the last time you clowns
completely imploded the entire world financial system.
> Current interest rates are an unnatural joke, and
> anybody who's been around a while knows it.
You're a joke.
Larry Caldwell
Henchman) says...
> I Invest it into index funds or a bond fund with a few stocks on the side.
Good advice. I live in the US, and invest in offshore bond funds. US
interest rates are so low, bonds won't do anything but lose money as the
rates inevitably go up. Take a look at Templeton Global Bond.
--- news://freenews.netfront.net/ - complaints: ne...@netfront.net ---
Camellia Sinensis
"BigDog1" <bigd...@gmail.com> wrote in message
news:c73c0c40-6865-401a...@u19g2000prh.googlegroups.com...
Actually, my post said nothing about how poorly people were managing their
money and then being socked with high interest rates or late fees--my
original post used those amounts to point out the disparity of the way the
banks pay interest and the way they charge interest (and fees). The news
story said they banks were trying to think up ways to get people to save
money in their banks. I just found it an incredibly stupid question on the
banks' part. If the banks could pay 4 1/2% interest back in the 50's and
60's when they weren't charging an arm an a leg in fees and interest rates
and still made a decent profit, why the horrid gouging and usury that is
going on now? Greed, plain and simple. I live within my means and have an
excellent credit score, but there is no way in hell I am going to tie up
$5,000 or $10,000 for six month to a year in a CD that is paying around 1%.
Just a couple of years ago I had several CD's rolling over every few months
and was making a tidy sum on them. Fat chance of doing that now. I am
making more money off my credit card awards than I am on my savings account.
I pay off the credit card in full every month, so I don't pay any interest,
but when my rewards level hits $200, I can get a check for $250. That is a
better deal than the lousy interest paid on even the money market saving
account where I keep my "cushion."