Low Interest on Savings

[pennypinch]

Interest rates pretty much stink at this point on savings accounts and they say the rates may sink even lower then they already are.

The FDIC limits the amount of interest rates a bank can offer because if that bank fails, the FDIC is responsible to pay the interest as well. They don't don't want to be responsible for more than they have to be.

Depending on the ratings of the institution, you can get a better rate. You just have to do some serious shopping around.

I know the rate at my bank isn't all that great. I can't remember off hand exactly what it is but when my kids get their statements in the mail, they are always saying, theres no sense in looking at it because it's only a penny more lol! I just come back and tell them, well put more mon ey in it and you will get more interest instead of spending all of your money as quick as you get it lol!

[beaston]

Originally Posted by pennypinch

Interest rates pretty much stink at this point on savings accounts and they say the rates may sink even lower then they already are.

The FDIC limits the amount of interest rates a bank can offer because if that bank fails, the FDIC is responsible to pay the interest as well. They don't don't want to be responsible for more than they have to be.

Depending on the ratings of the institution, you can get a better rate. You just have to do some serious shopping around.

I know the rate at my bank isn't all that great. I can't remember off hand exactly what it is but when my kids get their statements in the mail, they are always saying, theres no sense in looking at it because it's only a penny more lol! I just come back and tell them, well put more mon ey in it and you will get more interest instead of spending all of your money as quick as you get it lol!

I didn't catch all of it to get the complete details, but I heard something on the radio the other day about the fed fixing, or considering, a 4% raise???