July 30, 2009
Its almost as if money has become worthless to banks.
The govt is printing it up and handing it to them for free so who cares about getting deposits.
I think you got it right there. It's a simular to what happend in the 90's when savings accounts went down to .025%, banks didn't need customers money any more. So they offered very little return for it. I fear, the same as you, with all the QE going on that it's cheaper to borrow from the Gov't than it is to borrow from the saver. Plus with Gov't bank bailouts, they don't feel they need to attract money anymore as they know the Gov't will bail them out if anything goes wrong. No risk, poor bank decisions = big rewards for banks.
my 90 days 1% promo with ctfs is almost up. Wondering if I should move to maxa financial? Or for that little interest difference, does it even matter?
Well, depends on how much you have in the bank. I'm sitting in HSBC at 1.05% unhappy with the rate, but happy HSBC is a lower "secure" risk bank. Sure, I could get DOUBLE the rate (and I should) if I move my money. But 1% is a poor return, but better than the deflation going on now, and better than the stock market for the average person due to it's extreme risk right now.
If you can, move it, stay under the CDIC limit and if anything, it will make a statement to the bank you are withdrawing your money from that their rates are not competitive. Tell them that via customer service, even write I a letter/email (I did to HSBC). If you want to make a big statement, demand CASH only.
July 30, 2009
But 1% is a poor return, but better than the deflation going on now
There is no deflation going on. my bills are only going up along with the cost of everything. Income is stagnating. I have seen nothing fall except interest payments on my savings.
I wish people would stop repeating the central bank's propaganda. Savers are being robbed to pay the debts of gamblers and spenders by crooks at the top who think their meddling in the markets is warranted.