Why are interest saving rates so low in US?
#1
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Joined: Feb 2011
Location: London -> New York
Posts: 14
Why are interest saving rates so low in US?
Why are interest saving rates so so low in the US, compared to UK? E.g. Citibank offering 0.4% annual saving rate? Where do they save their money?? Doesn't this turn people off from moving to the US?
#2
Re: Why are interest saving rates so low in US?
Currently the highest interest paid on money market accounts in the US is between about 1.20%-1.35% at online banks such as Capital One, Alley, and ING direct.
#3
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Re: Why are interest saving rates so low in US?
But its not the American dream to save money You should buy a large house that you can JUST about afford, and hope the market doesn't go down...
The upside on the mortgage part to remember is 30 year mortgages have FIXED interest rates for the duration of the loan. That is very different to the UK. So securing a mortgage at today's rates is quite attractive.
The upside on the mortgage part to remember is 30 year mortgages have FIXED interest rates for the duration of the loan. That is very different to the UK. So securing a mortgage at today's rates is quite attractive.
#4
Re: Why are interest saving rates so low in US?
Because they can get away with it as people don't seem to care.
#5
Re: Why are interest saving rates so low in US?
But its not the American dream to save money You should buy a large house that you can JUST about afford, and hope the market doesn't go down...
The upside on the mortgage part to remember is 30 year mortgages have FIXED interest rates for the duration of the loan. That is very different to the UK. So securing a mortgage at today's rates is quite attractive.
The upside on the mortgage part to remember is 30 year mortgages have FIXED interest rates for the duration of the loan. That is very different to the UK. So securing a mortgage at today's rates is quite attractive.
#10
Re: Why are interest saving rates so low in US?
Yes but RBS (or the British government) is the only large bank in the world that has yet to turn a profit since the credit crisis. It is hard to make a profit when you are offering 3%-5% interest on deposits and lending it out for less than that.
Because RBS isn't turning a profit, its preferred shares are currently paying over 10% interest while most other large banks are paying about 6%-7% on their preferred shares.
Because RBS isn't turning a profit, its preferred shares are currently paying over 10% interest while most other large banks are paying about 6%-7% on their preferred shares.
Last edited by Michael; Mar 21st 2011 at 4:19 am.
#11
Re: Why are interest saving rates so low in US?
Yes but RBS (or the British government) is the only large bank in the world that has yet to turn a profit since the credit crisis. It is hard to make a profit when you are offering 3%-5% interest on deposits and lending it out for less than that.
Because RBS isn't turning a profit, its preferred shares are currently paying over 10% interest while most other large banks are paying about 6%-7% on their preferred shares.
Because RBS isn't turning a profit, its preferred shares are currently paying over 10% interest while most other large banks are paying about 6%-7% on their preferred shares.
#12
Re: Why are interest saving rates so low in US?
Of course the Irish and Icelandic banks are basket cases.
Although RBS and Lloyd's are currently trailing behind the other European large banks, I don't think either of those banks have large bond holdings in Greece, Irish Allied Bank, or Portugal so if those countries/bank can't repay their loans in the future, RBS and Lloyd's may come out ahead of many of the other Large European banks.
Last edited by Michael; Mar 21st 2011 at 6:19 am.
#13
Account Closed
Joined: Jan 2006
Posts: 0
Re: Why are interest saving rates so low in US?
B of A doesn't even charge me to use my ATM card in Canada as long as I used a Scotia Bank.
Maybe I am lucky..lol
Canadians banks are worse, at my bank 10.95 a month gets you unlimited transactions and the ability to see a teller inside the bank.
3.95 a month gets you 12 monthly transactions and no teller visits.
I'll take US banks any day.
#14
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Re: Why are interest saving rates so low in US?
They make their money out of investing your money like most banks. These investments have not necessarily been as fruitful in prior years and that, plus more regulation on things like overdraft changes, means the days of "free" banking are getting smaller and smaller.
#15
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Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,540
Re: Why are interest saving rates so low in US?
Just do a Google search for "high interest checking" or similar and you'll see more information...
We get 3% interest on our checking account, and no fees for anything. We now keep our "emergency savings" there (that is, the recommended 6 months to one year of expenses.)