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Dwindling interest rate

October 7th, 2020 at 07:46 pm

I transferred our savings account to Discover at the end of the year last year because it was paying 1% and my credit union was only paying .05%. I was excited for the little increase the $ would be making....

Since then, it seems like each time I log in, it has dropped... .90, .80. 70 and today it was .60% Its still multiple times what I would make at the credit union, but c'mon!

I remember when I started in banking, checking accounts paid 5% and regular savings paid 7%!! Granted, inflation was crazy and home mortgage interest was around 12%. (I know I just aged myself, but being I am near retirement it wouldnt be too hard to figure out I am getting a little long in the tooth!)

Back then, people could count on CD interest to supplement their income...the end of the quarter was always busy with retirees coming in to wd their interest! But those days are long gone- both money wise and technology wise (ha)!

Now, I am NOT an advocate for savings rates to go back to the post deregulation period, but this is just sad!

I am not skilled at investing, but maybe its time to learn.. I AM open to suggestions at this juncture. I guess I should be thankful I don't have to PAY to have a safe place to keep my money!!

3 Responses to “Dwindling interest rate”

  1. Lots of Ideas Says:

    Soon after i got my first job, I put money in a CD that paid 13 percent...but mortgage rates were 18 percent. My colleagues, all around my age, and I thought we would never own houses. When mortgage rates dropped to 12 percent, more than half my team of 20 people bought houses. A few years later, they dropped to 10 and we all refinanced and thought we'd gone to heaven.

    The low rates now are great for people borrowing money but not good for those looking for safe investments.

    I work with an advisor from Fidelity. I find that he (and his predecessor) really listen to me and my concerns, and I have been very satisfied. I pay a small amount but I think it is worth it because I think the return rate is better than I could do on my own.

  2. LivingAlmostLarge Says:

    Oh I remember those days. The days of 6% savings accounts. Where did they go?

  3. Frugal_Cheap_Pants Says:

    When I signed up for my Discover savings it was 2.25% and now it's at a measly .6%. I mean, something is better than nothing, and it's still better than my credit union, but, my heart breaks. I finally got to the saving side of adulthood and now the interest rates are better for spenders. Ugh!

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