Savings account interest
Nowadays, savings account interest is dropping like a rock. The FED is trying to lower the interest, in order for companies to take loans, so the economy will start rolling again. Of course, together with the interest rate for loans is dropping the savings account interest. Here you have some of the best interest from the market:
- FNBO Direct Online Savings Account decreased to 2.15%
- ING Direct Orange Savings Account decreased to 1.65%
- E*TRADE Bank Max-Rate Savings Account decreased to 1.95%
- HSBC Direct Online Savings Account decreased to 1.85%
The funny part is that in Central – Eastern Europe, the savings account interest are extremly high, on very strong currencies. For example, in Romania, the figures are very high and big US banks are keeping large deposits here:
- Volksbank Romania – 14,5% in RON and 6% at EUR
- BRD Societe Generale - 13,75% RON and 6,75% at EUR
Also, if you invest in state bonds, you will get a guaranteed 20% interest rate, which is also huge. The need for cash in these countries is so big, that are keeping these enormous interest rates for saving accounts.
My suggestion is:
1. if you really want to keep the money somewhere, try to use the overseas accounts that are guaranteed. In Romanian for example the state guarantees 50,000 eur each saving account. Other countries have bigger limits.
2. Try to put the money to work. Invest in future flows of capital. You will never be rich if you keep you money in the bank. Actually, you could loose money due depreciation. Did you know that since 1920 until today US Dollar lost 95% of it’s value?
Today’s savings account interest is not worth to keep the money in the bank, unless you really don’t have anything else better to do with them.
