Bank interest on savings - what a joke Joyce

Unless a person has like $10k or more in savings bank interest is basically a sick joke since Covid and banks reduced interest on savings to basically nothing.

How is it where you are?

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BamPow · 51-55, M

I’ve got my money spread across a diverse array of stock funds, bonds, and mutual funds across sectors in domestic and international accounts. I only use traditional savings accounts to hold emergency funds and treat it like I would have treated a credit card years ago. I never have any expectations of earning from it, because as you’ve mentioned, the interest is nonexistent.

mksworld · 46-50, C

@BamPow Ok that's really nice when you're rich with lots of money to do that with. We don't have any investments as even between us we struggle just to pay rent and bills on two incomes. Emergency funds? That's a pipe dream for us and lots of our friends. Never had and never will have credit cards as they are uber toxic.We don't go out much and gave up the whole 'girl social set' scene because being able to live is more important. I don't have kids but Kaz does with her ex and she wants to look after them too.

We have a small amount in a 'high interest' savings account (enough maybe to cover one month of bills but not rent) and get under 10 c interest a month since the Covid times when it went to zero interest then bounced back a little bit.

BamPow · 51-55, M

@mksworld I’m not uber rich by any stretch. I actually grew up in poverty and lived below my means enough to consistently and aggressively pack it away for 30 years. It’s grown pretty well, and I’ve spread it out as much as humanly possible to mitigate risks. The key is the other side of the equation. I drive old cars (our newest one is 10 years old) and have no mortgage now. Our expenses are just basically utilities and groceries, so it doesn’t take as much input to meet that output. Plus, we live in an area where the cost of living is pretty low in general.

mksworld · 46-50, C

@BamPow We'll never be able to afford to buy a property so we're expecting that if we stay together in 10 years time when we're around 50 we might have enough savings to cover a few years of expenses but here in eastern Australia property prices mean only the rich can afford to buy a property now and getting a mortage is harder than ever.

Gusman · 61-69, M

Perth WA
My savings account interest rate is a paltry 1.25%.
It will reduce soon as the Reserve Bank lowers the home loan interest rate again.
I do have a term deposit at 4.25%

ShenaniganFoodie · 36-40, M

@Gusman Commonwealth Gold Saver

MommySon · 41-45, F

You have to do around. Credit unis often have better rates.

SomeMichGuy · M

It was because the Federal Funds rate was so low.

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SomeMichGuy · M

@mksworld I have to ask: did the Wizard set it before leaving?

mksworld · 46-50, C

@SomeMichGuy Who's the 'wizard' of whom you speak? The official cash rate and regulation of inflation is done by the Reserve Bank which like the Federal Reserve in the US operates without the influence of government.

SomeMichGuy · M

@mksworld Ah, you are unfamiliar with the origin of "Elphaba"...

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