Dedicated to Deposits: Deals, Data, and Discussion

NYTimes Article: At Tiny Rates, Saving Money Costs Investors


I feel a little bit uneasy about pointing out this recent NYTimes article, At Tiny Rates, Saving Money Costs Investors, during the holidays. Since these types of articles are not too common in the mainstream media, I decided it was worthwhile of a post. I hope this doesn't hurt your holiday cheer.

Here's a noteworthy quote by Bill Gross who was interviewed in the article:
"What the average citizen doesn’t explicitly understand is that a significant part of the government’s plan to repair the financial system and the economy is to pay savers nothing and allow damaged financial institutions to earn a nice, guaranteed spread," said William H. Gross, co-chief investment officer of the Pacific Investment Management Company

And here's what Bill Gross has to say about future interest rates:
"What the futures market is telling me," Mr. Gross said, "is that in April 2011, these savers that are currently earning nothing will be earning 1.25 percent."

I'm afraid it may take a while before we see some decent deposit rates.

Thanks to the reader who mentioned this article in the Bank Deals Hub. Also, thanks to Sam at BestCashCow who has some well-written commentary on this article. He makes a good point that we savers need to shop for the best rates and make sure we "Reward the banks that are willing to pay a bit more for your hard-earned cash." And don't forget credit unions.

For recent deals that I've reviewed, please refer to my last weekly summary.

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