Banks Are Now Accused of Cheating Customers Billions

Re:Banks Are Now Accused of Cheating Customers Billions by ozim on Friday August 16, 2024 @04:27PM (#41270057)

Well I am glad I don’t see people writing about “high yield savings accounts” as often I see that copy pasted from old tutorials on basic investing.

Maybe I am wrong but I don’t think there were any “high yield” savings accounts for at least a decade or even more.

All savings accounts I see are mostly below inflation or around the same. Where high yield for me would be at least 1% or 2% above inflation.

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Re:Banks Are Now Accused of Cheating Customers Billions by pitaj on Friday August 16, 2024 @04:38PM (#41270147)

Inflation is now below 3%. HYSAs are above 4% right now, so are beating inflation by a good margin.

Of course, changing interest and inflation rates can change that.

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Re:Banks Are Now Accused of Cheating Customers Billions by tazu on Friday August 16, 2024 @05:15PM (#41270482)

> Inflation is now below 3%

Officially.

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Re:Banks Are Now Accused of Cheating Customers Billions by dmoy on Friday August 16, 2024 @10:43PM (#41271933)

In the long run you aren't going to be beating inflation by 2% with your cash or equivalent (CDs, treasuries, repo, whatever). That's in the 0-1% above inflation range, and likely on the lower end of that scale.

Even intermediate or longer term bonds struggle to get 2% real returns.

But yea, "high yield" is a misleading name for savings accounts, and there isn't a huge point to it now, especially after the liquidity rules on government money markets got tighter after dodd frank.

There is still one benefit to having at least a month or two of expenses in a savings account though - FDIC. In an emergency that also crashes your bank, FDIC turnaround is like one business day. SIPC exists for brokerage holdings, but it is glacially slow by comparison.

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