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Why is little to no interest being offered for CDs, treasuries, savings accounts, etc?

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I just about asked this question in another thread but think it deserves its own. 50 years ago, banks paid you fairly well for keeping your cash with them in various ways. You could have a nice income if you had purchased a CD, or kept your life savings in a bank. Now, there seems to be no reason to keep your money in a bank other than convenience. Interest paid is so small as to be irrelevant. Why the change? I see it as banks have no need for your cash when they have so many ways to chop up and borrow against what they have already. Does this have any bearing on a possible inflation/hyper inflation scenario?

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I figures it was due to the  low prime rate?

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Posted (edited)

https://www.investopedia.com/insights/forces-behind-interest-rates/ 

The government is stimulating borrowing. Not saving. Our economy requires consumption to survive.

 

Look for archived headlines around the time frame you're interested to see what drove rates.

united-states-interest-rate.png

Edited by ahipara 55

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Just be glad they are paying any interest at all!  Many European banks CHARGING you to keep your money there!

https://www.usnews.com/news/business/articles/2020-02-14/negative-interest-rates-turn-saving-borrowing-upside-down

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I thought it was my fault !  back in the 80's  and 90's when I had no money the interest rates were high. Now that i have some money in the bank the interest rates are low. 😒

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1 hour ago, i8sand said:

I thought it was my fault !  back in the 80's  and 90's when I had no money the interest rates were high. Now that i have some money in the bank the interest rates are low. 😒

No kidding. DON~~~

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Yeah my parents 70s and grandparents 90s. Used to always have CD's any may still have but man it sure doesn't pay now a days. I'm lucky to have a "high yield" account thru schwab at 4.5%, compared to chase at .01%

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