No Incentive

bondsNo wonder people in this country aren’t saving any money.  The financial institutions aren’t giving us much incentive to do so.

It’s been a very long time since any bank, savings and loan, or credit union gave gifts for opening up accounts, but I’m just old enough to remember that, once upon a time, they did just that.

We had a CD mature over the weekend and I’m debating what to do with it.  The renewal interest rate is more than 1% less than what we’ve been getting, and I thought the original rate was pitiful.  Why in the world should I allow a bank to have access to my money for less than 2.5% interest?!

We’ve decided to put the bulk of this money in Series I Savings Bonds because they are currently earning 5.64% interest if held for 5 years.  If you cash them in prior to the 5-year mark, you forfeit 3 months of interest.  The other benefit is that the interest is exempt from state income tax.

Where are you parking your money these days?


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