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A comment on Banks are slow to increase rates on savings accounts, but quick to reduce them. Parent comment

Re:Banks are slow to increase rates on savings accounts, but... by garmaine on Saturday July 25, 2020 @08:19AM (#23948643)
Savings account rates are terrible compared with alternative investments though, even cash-storage investments.
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Re:Banks are slow to increase rates on savings accounts, but... by formercoder on Saturday July 25, 2020 @09:08AM (#23948903)
I’m not aware of anything with that risk / liquidity profile which pays better? In fact theoretically there shouldn’t be anything.
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Re:Banks are slow to increase rates on savings accounts, but... by throwaheyy on Saturday July 25, 2020 @07:33PM (#23953201)
- High yield savings accounts

- CDs

- Money market accounts

All pay much higher than a typical megabank savings account and are equally as safe.

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Re:Banks are slow to increase rates on savings accounts, but... by formercoder on Saturday July 25, 2020 @08:18PM (#23953393)
Sorry i meant better than high yield savings.
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Re:Banks are slow to increase rates on savings accounts, but... by throwaheyy on Saturday July 25, 2020 @08:31PM (#23953454)
Bond ETFs are right now around 2% yield with slightly higher risk than a savings account
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Re:Banks are slow to increase rates on savings accounts, but... by NovemberWhiskey on Saturday July 25, 2020 @09:53AM (#23949179)
Well, that sort of depends on how you value FDIC insurance.
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Re:Banks are slow to increase rates on savings accounts, but... by formercoder on Saturday July 25, 2020 @01:41PM (#23951003)
Not any higher than SIPC
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Re:Banks are slow to increase rates on savings accounts, but... by zdkl on Saturday July 25, 2020 @08:31AM (#23948705)
Could you give some examples, adjusting for risk?
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Re:Banks are slow to increase rates on savings accounts, but... by Aunche on Saturday July 25, 2020 @10:12AM (#23949309)
No penalty CDs are strictly better than savings accounts. I was able to lock my emergency savings into a 1.6% CD the day the Fed announced rates cuts.
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Re:Banks are slow to increase rates on savings accounts, but... by formercoder on Saturday July 25, 2020 @06:12PM (#23952805)
Why are they strictly better? You remove interest rate risk at the expense of yield. They currently pay less than high interest savings.
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Re:Banks are slow to increase rates on savings accounts, but... by Aunche on Saturday July 25, 2020 @08:44PM (#23953515)
Whenever I looked at them last year, they were always slightly higher yield than the online savings accounts. Perhaps it was just a promotional rate.
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