Generous Interest Earned

[Dibbons]

My checking account offers no interest on the balance, however, I find that my savings account just accrued a whole 'nother penny this month!

Banks do give customers interest on their savings accounts, but the rate is typically pretty low — this is because a bank can get money from the Fed at a discount rate. So it doesn't make sense for it to pay you much more than it would have to pay on a government loan.

 

[toolmanmike]

My checking account offers no interest on the balance, however, I find that my savings account just accrued a whole 'nother penny this month!

View attachment 1150940

Yep. Me too. I had a CD locked into about 3% until it expired. It went from making $100 a month to just a few dollars. But no complaints We borrowed some money to re-do our roof at about 2%. That's cheap money.

 

[Jerry Hall]

Yep. Me too. I had a CD locked into about 3% until it expired. It went from making $100 a month to just a few dollars. But no complaints We borrowed some money to re-do our roof at about 2%. That's cheap money.

If you are borrowing money against your savings at 2%, it may be a good deal for some as you have to pay it back. Why not take the money from your savings and fix your roof, and pay yourself back at 0 interest and save the 2%. If you can borrow unsecured money at 2%, good deal.

 

[toolmanmike]

If you are borrowing money against your savings at 2%, it may be a good deal for some as you have to pay it back. Why not take the money from your savings and fix your roof, and pay yourself back at 0 interest and save the 2%. If you can borrow unsecured money at 2%, good deal.

It was $75,000 and didn't want to cash in on a retirement account with penalties just to save a couple %.

 

[Jerry Hall]

It was $75,000 and didn't want to cash in on a retirement account with penalties just to save a couple %.

Good call. My last roof, 5 years ago was 20K, probably at least 50% more today.
I wasn't putting you down, everyone makes decisions on what is best for them. I'm beyond penalties on IRA's, just trying to figure how not to lose it on the reset ahead.

 

[toolmanmike]

Good call. My last roof, 5 years ago was 20K, probably at least 50% more today.
I wasn't putting you down, everyone makes decisions on what is best for them. I'm beyond penalties on IRA's, just trying to figure how not to lose it on the reset ahead.

We replaced a 100 year old clay tile roof with textured steel. It wasn't cheap but a architectural asphalt shingle roof with the extras came in over $50.

 

[493 Mike]

I have been dealing with Discover bank (online) for several years now with good results. Interest rates are much lower now than when I started but, a lot better than my local CU. I just use it for cash storage now but, I used to buy CDs there.
Mike

 

[YY1]

I use my CU to direct deposit my paycheck, pay my bills, and keep a little cash nearby.

For real interest, I use my market investments, currently returning 7.5%

...and our rental property currently returning around 10-15%