2 responses to this post.

  1. Posted by Christine on November 5, 2009 at 6:00 pm

    I wish that I had a bank offering good rates to share with you – all of ours are terrible. You have a good point though!

    Reply

  2. Posted by Eric on October 21, 2010 at 4:13 am

    Banks borrow money from the Federal Reserve for like .25% why would they foolishly pay more to their depositors?

    That’s what the Fed does, it controls how much money is out in the economy. It was established to have control over our economy to prevent a depression.

    The current rate is .25% in 2007, it was 4.75%

    Banks ARE making a killing right now on loans, but they are losing a lot on bad debts because many are unemployed and can’t pay their debts.

    The FDIC, which insures deposits to banks have started requiring banks to make borrowers jump through hoops to get a loan, so businesses can’t borrow money to expand and employ more people like they could a few years ago.

    Its a political agenda that is playing out, but it will soon turn around.

    Reply

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