51M. As a child I had a children’s saving account with compound interest. My $100 went up to just below $200 in around 4 – 5 years. That seems like peanuts, but to a kid that was a lot.As a young adult, in the mid 1990s, I remember my older colleagues were talking seriously about CD interest rates to put away for up to five years, at 6%.
Now, in 2024, with the major banks, a one-year CD from Bank of America is 0.03%. Maximum rates for 5 years is 2.5% at Chase, no matter how much money you put away. Savings accounts compound interest rates are 0.01%, max, IF you maintain at least $10,000 in the account.Yet interest rates for a housing loan are at 7% and putting housing purchases out of reach. How can the banks do this?
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In: Economics
CDs, t-bills, money markets all have returns that hover around 4-5.5%
BoA has a 7month and 13 month cd around %5 for under 10K investments…
chase has a 9 month cs at 4.25%…
And turning $100 into $200 in 4-5 years would have rates around 14-19% which is unheard of for a savings or security.
I’m thinking this is a troll post
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