Earlier quoted context omitted.
Grabbing some I Bonds could be worth it.
I'm already maxed out at $10,000 for this year.
Got kids? Look up “minor” accounts.
Got an LLC or a family trust of some sort? Look up “entity” accounts.
U.S. interest rates have soared everywhere but savings accounts
241–250 of 356 posts
Re: U.S. interest rates have soared everywhere but savings accounts
#242Earlier quoted context omitted.
Some of it was re-instated with Dodd-Frank but ultimately I think it was insufficient, a return to Glass-Steagall would be a more ideal world for banking but will probably never happen in America as it stands today.
America will fall before the banks let the government regulate them in any meaningful way.
Banks are some of the most highly regulated entities in our entire economy. They can't do really anything without asking for permission or following exact steps spelled out in FDIC/OCC/Fed rules.
Re: U.S. interest rates have soared everywhere but savings accounts
#243Earlier quoted context omitted.
America will fall before the banks let the government regulate them in any meaningful way.
Banks are so regulated that you can't open an account in the US unless you visit a bank branch physically.
This is simply untrue. Marcus is a fully licensed online-only bank, they have no physical branches whatsoever and everything is done through their website:
There's also Green Dot Bank which is what Apple Pay uses among other mobile payment systems. They technically have a single physical branch but you don't ever need to visit it in order to open a savings/checking account with them:
Re: U.S. interest rates have soared everywhere but savings accounts
#244SoFi is offering 1.25% but Vanguard's short term treasury fund (VGSH) is at 2.35% if you're ok with mild capital risk.
Re: U.S. interest rates have soared everywhere but savings accounts
#245Clickbait title, the fed rate went from 0.25% to 0.5% hardly soaring. Savings accounts previously paid like 0.04% according to article, that's because they need margin and they can keep them low cuz people won't swap banks for half a percent (not that it'll get there anytime soon)
> hardly soaring It's double the previous rate. I don't understand why central banks always use fixed increment sizes.
Maybe for the same reason why gasoline in U.S. is usually priced in increments of $0.10 as the performance rating goes up (although that seems to be less of a rigid rule lately where I live)?
Or maybe for ease of predictability? After all it is much easier to make a binary choice between two numbers with a fixed interval between them, than to choose an intermediate value to the Nth degree.
Re: U.S. interest rates have soared everywhere but savings accounts
#246Earlier quoted context omitted.
There is literally a trillion dollars too much in cash in banks right now. All of that money just sits in reverse-repo with the Fed. So I don’t know how you’re claiming that banks aren’t sitting on too much cash?
Closer to $1.7 trillion last I checked. “Money” is inventory for a bank. You can have too much inventory.
Inventory causes problems if you're not moving product.
Re: U.S. interest rates have soared everywhere but savings accounts
#247Earlier quoted context omitted.
> "...there is no incentive for banks to increase interest rates on accounts as they are already sitting on too much cash." and folks wonder why banks are so strictly regulated... no, banks are never sitting on too much cash unless they've made a marketing and/or an operational error. most banks are highly levered, meaning they're lending out, say, 10× the cash they hold, so they never "have too much cash on hand". q…
no. this is ridiculous. you've demonstrated a total lack of understanding of how a bank manages its balance sheet. Banks are awash in reserves and in the basel3 regime these reserves fulfill a similar role to cash in fulfilling bank balance sheet construction requirements. so the banks are not constrained from a lending perspective by a lack of cash and therefore have no incentive to raise rates to attract new deposi…
Your comment could have gone without the first line.
Re: U.S. interest rates have soared everywhere but savings accounts
#248Earlier quoted context omitted.
America will fall before the banks let the government regulate them in any meaningful way.
Banks are so regulated that you can't open an account in the US unless you visit a bank branch physically.
Not true because I've opened an account with an online-only US bank. There are no physical branches to visit.
Re: U.S. interest rates have soared everywhere but savings accounts
#249Earlier quoted context omitted.
America will fall before the banks let the government regulate them in any meaningful way.
Banks are so regulated that you can't open an account in the US unless you visit a bank branch physically.
Since when? The last 3 or 4 bank accounts I’ve opened have been done entirely virtually.
Re: U.S. interest rates have soared everywhere but savings accounts
#250Earlier quoted context omitted.
> "...there is no incentive for banks to increase interest rates on accounts as they are already sitting on too much cash." and folks wonder why banks are so strictly regulated... no, banks are never sitting on too much cash unless they've made a marketing and/or an operational error. most banks are highly levered, meaning they're lending out, say, 10× the cash they hold, so they never "have too much cash on hand". q…
> purely out of greed People want to collect interest on their bank deposits purely out of greed, too.
Covering inflation is greed?