Do you remember when you could save money in a savings account and get 6%
By writersedge
@writersedge (22563)
United States
June 14, 2009 6:42pm CST
interest? It's .5% here in most banks. Not even one percent. AT 6% I was encouraged to put my money in a savings account. Now we're lucky if a CD is 7%. If I had money that I could tie-up for a year, which I don't. The stocks have gone crazy. Is there a way to save money and make money?
2 people like this
6 responses
@peavey (16936)
• United States
15 Jun 09
Ingdirect.com is paying 1.50% right now. Not great, but better than most banks. I've been with them for several years and they always pay higher than most. I remember actually making enough money to make it worthwhile to put it in a savings account, too.
2 people like this
@writersedge (22563)
• United States
15 Jun 09
We have Credit Unions here, I wonder if this is better, the same, or less than the Credit Unions. Will have to check. I think it may be close.
At any rate, let's say it's higher than anything locally for me at the present time. Is it like paypal or different? This could be a very interesting option. For when I actually have $ that I can save and put somewhere.
1 person likes this
@writersedge (22563)
• United States
15 Jun 09
Just checked out ing, I will also have to check out our credit unions, if this is better, this could be very interesting. You've had them for years and they're for real. Not as good as 6%, but definitely better than .5%. Thanks, I'll check into this more as well as any other ideas sent my way. Thanks.
1 person likes this
@clutterbug (1051)
• United States
15 Jun 09
Hi writersedge, I was talking to my hubby about this, and he said that the reason we put our money in a Money Market Account is because it's the SAFEST, and these days that's so important. He said that nothing is really giving good dividends now. I remember back in the 70's I had a savings account with an interest rate of 8%. Unfortunately, I think those days are gone forever, because of the greed that abounds.
2 people like this
@writersedge (22563)
• United States
15 Jun 09
Yes, I agree. We're getting hit at both ends. Too little for savings interest and too much for credit interest. Double digit 22%, 29% and even higher on credit cards. There is supposed to be a law against usary or usarious interest rates, but what level is that set at now? 50% or something higher like 75%?
@clutterbug (1051)
• United States
15 Jun 09
8% was very nice. You never know what you've got or how good you have it, until it's gone. Like you said, the credit card rates are sky high. I heard on the radio that some of the credit card companies are going to penalize people further by charging interest as of "the day of a purchase rather than waiting for payment at the end of a cycle. Boy, I feel sorry for those peeps.
1 person likes this
@GardenGerty (169568)
• United States
15 Jun 09
I have friends who are making money with stocks, very conservatively. I am not, my money seems to run right away before I have any to invest.
1 person likes this
@writersedge (22563)
• United States
15 Jun 09
There are a few stocks that are supposed to be recession proof. Chocolate, beauty, and probably dollar stores, besides that, I don't know. I don't have that much money anyway. Most stocks are a thousand dollar min. to invest and I wish I had that much extra, I'm pretty much only a few dollars at a time on hand. But just in case for the future.
@echomonster (2225)
• Greenwood, Mississippi
15 Jun 09
I think sometimes people overrate the safety of banks and exaggerate the dangers of the stock market. The truth is interest rates and stock prices both fluctuate, sometimes wildly! Right now it's a bad time to be a saver, in part because governments as part of their "quantitative easing" policies have slashed interest rates to encourage borrowing and pumped large amounts of money into their economies. Governments usually don't directly control the interest rates bank customers see, but they have a huge indirect influence on them. So it's not great to be a saver...for now. Chances are, however, that all the money being pumped into the economy is going to create inflation which will lead to governments raising interest rates to reign that in. The bad news, though, is that while we'll likely be earning higher rates of interest on our savings our money will be worth less because of the inflation!
@writersedge (22563)
• United States
15 Jun 09
Very true, it is rather discouraging, isn't it? Thank you very much and take care.
@cobrateacher (8432)
• United States
15 Jun 09
Edge, if there is a way, I certainly haven't found it. With prices up and salaries frozen, I'm broke all the time. Good thing I love my job, or I'd look for (and probably not get) a job that pays better!
2 people like this
@writersedge (22563)
• United States
15 Jun 09
I know. I'm barely paying my bills, too. But there is a brief time between paycheck and payout (sometimes, not often, but sometimes) where I make a penny or two. I was just wondering if I could make a few more pennies. It might add up to some orange juice or an apple or something. Then when life gets better, maybe I'll know a way to use the $ better. One never knows. Some interesting responses here that you might want to check out. The future may improve. Thanks and take care.
@Canellita (12029)
• United States
15 Jun 09
Shop around for a CD. My credit union has short term ones for 6 months and I think even 3 months. You don't have to do it with your local bank.
@writersedge (22563)
• United States
15 Jun 09
True, very true, usually CDs are better at one bank and regular savings are better at another bank. Thanks and take care.
