Jump to content
  • Announcement

    • Dirktator

      Got the wrong discs? Or didn't receive them in the mail?   06/20/2018

      For those who opted for physical discs -- if you donated between April - June and you received the WRONG discs or NO discs in the mail, please email stexcd@simtropolis.com and include your donation info such as Paypal transaction ID and we will get this rectified!
Sign in to follow this  
dghh70

Bank intrest

16 posts in this topic Last Reply

Highlighted Posts

Banks have not paid decent interest on regular accounts for a long time now.

That is if they don't automatically close accounts that have no activity.

The savings rate is tied to the spread between lending rates and the risk of loss. Right now the lending rate is very low (between banks), and the prime rate for AAA+ customers isn't much either. When I was in retail banking, the maximum lending rate was fixed by law at 6% and the banks paid 1 3/4% compounded quarterly on the minimum balance, paid semi-annually. I calculated enough interest, which was done manually with a set of tables in those days, to know that this was a high rate. Once the interest rate ceilings were removed, the savings rate did not change even as the lending rates crept up. The banks simply took more risk for higher rates.

The only way to make more than the savings rate is to invest. For that you have to be extremely lucky, because any investment you make in the market, especially now, is no better than betting on the fifth horse in the fifth race at the track, which is likely to come fifth.

Currently, my savings accounts are making 1.5% per annum, compounded daily paid quarterly. It is a pittance, but it is better than nothing, which is what you get on lumps of gold or currency stuffed in your mattress. Lately, the gold price has been falling.

In Canada, inactive accounts are not closed to service charges, but transferred to the Bank of Canada, from which they can be reclaimed on presentation of proof of deposit (an outdated passbook will do).


  Edited by A Nonny Moose  

Share this post


Link to post
Share on other sites

Damn, you've got it good up in Canada! I'm currently getting 0.20% APY on my savings account, compounded every 30 days. :boggle:

It should be noted that inflation in the US in 2010 was 1.4%, and it's looking to be as high as 4-5% this year.

There was a time where putting money in the bank would have been the smart thing to do with it. Right about now, it's only marginally better than stuffing it in your mattress. Keeping cash in any form is a losing proposition, if you want to not lose value you need to find other assets. Hence why precious metals are trading at record highs.

Share this post


Link to post
Share on other sites

The banks paying less then 1% interest on savings accounts is criminal.

especialy when they charge 30%+ on credit cards,and those per use fees to use your debit card or checking account.


  Edited by Easy Bakes  

Share this post


Link to post
Share on other sites

I get 0.01% interest in my complete access account. My savings account gets 4.75% p.a., although I don't often have much in there. I'm just a poor university student.

Inflation's at 3.6% here. I'd get a small profit from my savings account.

were you getting 4.75%?

Share this post


Link to post
Share on other sites

Meanwhile, back at the money, your bank is planning to grab even more of it.

As a former banker of many years ago, I can say that the rapaciousness of banks wasn't there in the 1960s. A colleague of mine at one of the big Canadian Chartered banks told me that they were making so much money off Visa that it was embarrassing. Now, with the vast savings of scale, personnel, etc. with the debit system, they want to increase their take. The seniorage they charge to merchants is disgusting, and when the government stepped in, they have the gall to try and pass this on to the customers.

You should: 1) tell your bank what you think of their idea of "service" charges; 2) move your account to a credit union.

As a matter of interest, my bank charges me 0.40 per transaction (of any kind) but I get 40 free tx per month because i have a seniors' account, so it all gets rebated. There is a basic $4.00 contra entry in my account every month when the right hand pays the left hand.

It is time for a very critical examination, perhaps a forensic audit, of the major banks, especially in the U.S. where things are more free wheeling.

Remember, it is not the government that creates the money supply, it is the banks. If you saw how simple it is for then to do that, you'd be amazed.

The thought for today:

A banker is a fellow who lends you his umbrella when the sun is shining

and wants it back the minute it begins to rain.

Mark Twain


  Edited by A Nonny Moose  

Share this post


Link to post
Share on other sites

As it is, I usually use cash unless it's impossible or inconvenient to do so. Though I've just been doing that as a matter of privacy (less card transactions = less of a trail for big brother to follow). If I start getting hit with fees, all the more reason.

Generally I use cash for small transactions, say under $50, but I don't like to have a lot of cash on hand. Fortunately, where I buy my groceries has a cash-back system with the interac transaction. Otherwise, I use direct bank transfers where possible. As things stand right now, I issue two cheques and four or five interac transactions a month. I also have a paypal account for the occasional on-line purchase, but I don't keep any sizable balance there. It takes over a week to transfer funds from my bank to paypal.

Share this post


Link to post
Share on other sites

it depends where you are in the country dude. All banks have adjusted rates and in the matter of continous rates im sure some national banks like bank of maerica citizens bank and us bank have some kind of deal like that. :|

Share this post


Link to post
Share on other sites

it depends where you are in the country dude. All banks have adjusted rates and in the matter of continous rates im sure some national banks like bank of maerica citizens bank and us bank have some kind of deal like that. :|

Context please.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an Account  

Sign up to join our friendly community. It's easy!  

Register a New Account

Sign In  

Already have an account? Sign in here.

Sign In Now

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

×

Thank You for the Continued Support!

Simtropolis relies mainly on member donations to continue operating. Without your support, we just would not be able to be entering our 15th year online!  You've really help make this a great community.

But we still need your support to stay online. If you're able to, please consider a donation to help us stay up and running, so that we can help keep bringing SimCity players together to share our creations.

Make a Donation, Get a Gift!

Expand your city with the best from the Simtropolis Echange.
Make a donation and get one or all three discs today!

stexcollection-header.png

By way of a "Thank You" gift, we'd like to send you our STEX Collector's DVD. It's some of the best buildings, lots, maps and mods collected for you over the years. Check out the STEX Collections for more info.

Each donation helps keep Simtropolis online, open and free!

Thank you for reading and enjoy the site!

More About STEX Collections