Now that I have a few dollars to rub together in my pocket, I want that money to earn interest. When I opened an account with ING Direct several years ago, it was paying more than 4% interest. In recent years, some banks offered 5% on savings accounts!
These days, ING is offering a puny 1.1%. Whoop-de-doo. Still, better than nothing, right? And it’s definitely better than paying 1.1% interest (or more) on a loan.
When the savings account interest rates were high, I don’t think I ever had more than a few hundred dollars in the bank at one time, so I never earned much interest anyway.
So on one hand, I’m sorta bummed that there’s no relatively safe place for my money to earn any respectable interest in the short-term.
But on the other hand…have you seen mortgage interest rates lately? They are fantastic. On Bankrate today, the site shows 15-year mortgages can be had for 3.84%. A 30-year is at 4.34% today. Wow.
These rates are comparable to what some savings accounts were earning just a short time ago.
It doesn’t appear that the Federal Reserve is poised to raise rates any time soon. Raising rates would mean more expensive mortgages, and more interest earned in our savings accounts.
I’m hoping that we are able to move in the early spring or summer of next year and buy a house shortly after. If we luck out, mortgage interest rates will still be low.
And once we get a house, then I’ll be happy if interest rates start to go up again. Gotta earn some money on that savings account!
What are your thoughts on the interest rates today? Ok or stinky?