On 7/01/2016 1:29 AM, Dave Smith wrote:
> On 2016-01-06 9:07 AM, Cindy Hamilton wrote:
>
>>> Er, no. The bank pays interest to ME :-)
>>
>> Sure, but it's probably a trifling amount compared to what they
>> earn by loaning your money out.
>>
>> Savings accounts in the U.S. are currently paying an average of
>> 0.48% and checking accounts (if they pay interest at all) are
>> paying 0.41%. Hope you're doing better over there.
>>
>
> Funny how banks are making huge profits these days while interest rates
> are pitifully low. It is annoying after years of putting away money form
> earnings and inheritances into savings accounts. When various accounts
> come due and I have to go and see the financial consultant I see that
> the money I will get from it barely pays for the gas to drive over
> there. I can't help but think back to 1977 when I bought our house and
> was paying 10 1/4 % on the mortgage, and then had to renew in 1982 at 18
> 1/2%. Now that I have money in the bank it I am lucky to get 1-1/2%.

You're not wrong there! I had much the same experience when I bought my
house in 1986. The interest rate was moderately affordable. Then I went
on and bought an investment property and the interest rates went up
around 18%. It made life very interesting indeed for quite a few years.
Luckily both my wife and I were working at the time else it could have
had a very different outcome. We're getting somewhere between 2% and 3%
from the bank at the moment, depending on the type of account the money
is in. We will be divesting ourselves of that investment property
shortly and will have to invest that money somewhere. Not sure where to
do that right now. I was thinking shares but they seem to be tanking
here just at the moment.

--

Xeno