Considering opening a new Savings account

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kdm31091
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Re: Considering opening a new Savings account

Postby kdm31091 » Mon Jun 27, 2016 10:40 am

I personally think it's a joke that banks call them "savings accounts" when 5 cents a month for a year does not even pay for a cup of coffee.


Tubpbs
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Re: Considering opening a new Savings account

Postby Tubpbs » Mon Jun 27, 2016 1:22 pm

kdm31091 wrote:I personally think it's a joke that banks call them "savings accounts" when 5 cents a month for a year does not even pay for a cup of coffee.


I got heated a few times in the bank and remarked that I could find more money in a parking lot in 15 minutes than I get annually in interest. It's ridiculous.
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TXviking
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Re: Considering opening a new Savings account

Postby TXviking » Mon Jun 27, 2016 2:17 pm

When I was a kid, my savings account earned over 10%. But my dad's mortgage was at 14%.

Banks will always charge more for loans than they pay for deposits. Low APY on savings is frustrating, and even the ~1% a few online banks offer don't amount to much. But along with 2.5% APR on my mortgage? I'll take it.

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Re: Considering opening a new Savings account

Postby Tubpbs » Mon Jun 27, 2016 4:19 pm

TXviking wrote:When I was a kid, my savings account earned over 10%. But my dad's mortgage was at 14%.

Banks will always charge more for loans than they pay for deposits. Low APY on savings is frustrating, and even the ~1% a few online banks offer don't amount to much. But along with 2.5% APR on my mortgage? I'll take it.


Very strong position. Very very true. It's obvious they'll always charge more than they pay, but the mortgage rate is very relevant for someone that has one or even someone that wants one. Someone that has no mortgage and doesn't borrow regularly doesn't get the benefit of the current low interest rate.
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TXviking
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Re: Considering opening a new Savings account

Postby TXviking » Mon Jun 27, 2016 5:41 pm

Tubpbs wrote:
TXviking wrote:When I was a kid, my savings account earned over 10%. But my dad's mortgage was at 14%.

Banks will always charge more for loans than they pay for deposits. Low APY on savings is frustrating, and even the ~1% a few online banks offer don't amount to much. But along with 2.5% APR on my mortgage? I'll take it.


Very strong position. Very very true. It's obvious they'll always charge more than they pay, but the mortgage rate is very relevant for someone that has one or even someone that wants one. Someone that has no mortgage and doesn't borrow regularly doesn't get the benefit of the current low interest rate.


Very true. However, most consumers have more debt than savings. Mortgages are common, but even if you rent, your landlord likely has mortgage expenses that figure into setting the rent. Many people have car loans. And while credit card APRs are generally much higher than prime (they seem to be bucking the general trend of rates trending downwards,) they are generally set based on the prime rate.

I think my overall conclusion is that in a debt-driven society, low interest rates are a net win for the average consumer, even though it does feel like it punishes frugality and fiscal responsibility.

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CarefulBuilder14
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Re: Considering opening a new Savings account

Postby CarefulBuilder14 » Mon Jun 27, 2016 10:30 pm

TXviking wrote:
Tubpbs wrote:
TXviking wrote:When I was a kid, my savings account earned over 10%. But my dad's mortgage was at 14%.

Banks will always charge more for loans than they pay for deposits. Low APY on savings is frustrating, and even the ~1% a few online banks offer don't amount to much. But along with 2.5% APR on my mortgage? I'll take it.


Very strong position. Very very true. It's obvious they'll always charge more than they pay, but the mortgage rate is very relevant for someone that has one or even someone that wants one. Someone that has no mortgage and doesn't borrow regularly doesn't get the benefit of the current low interest rate.


Very true. However, most consumers have more debt than savings. Mortgages are common, but even if you rent, your landlord likely has mortgage expenses that figure into setting the rent. Many people have car loans. And while credit card APRs are generally much higher than prime (they seem to be bucking the general trend of rates trending downwards,) they are generally set based on the prime rate.

I think my overall conclusion is that in a debt-driven society, low interest rates are a net win for the average consumer, even though it does feel like it punishes frugality and fiscal responsibility.

To some extent, it punishes frugality...but what it also does is pressure people to take more risks...risks some people shouldn't be taking.

There's no option for us to just keep money safe on the sidelines, preserving purchasing power after inflation and taxes. Banks can do it, but not consumers. If you don't take risks with money, you're forced to lose spending power.
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Re: Considering opening a new Savings account

Postby To My Credit » Tue Jun 28, 2016 9:11 am

Just opened a Discover Savings account. They have a separate login and they wouldn't let me use the same username, but that's fine. I hope the transfer from BoA goes through fine or I might have to move my Checking away from them, too.
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