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Good to see increased rates. Should last till the Federal Reserve decides to start rate cuts.
 
Good point and it kind of makes me wonder how much good FDIC really is anyway beyond the psychological effect. If a major bank fails to the point of needing the FDIC, it probably won't be the only one. It would just be like a bank run for the banks themselves. I don't think the FDIC can cover everyone, probably not even close.
Not true, it is much more likely a small credit union will fail and need the FDIC money. When a large bank fails, other banks in the US cover it and they also do not fail because they didn't make the same bad decisions the failing bank did.
Based on what happened in March last year, it's safe to say that, for all practical purposes, all deposits are now insured with no limit. :)
Sort of. Some of the money was lost and some was covered, it depended on the situation. Lots of good articles about how the entire thing shook out.
Valid point. And if any of the big boys even sniffed a collapse, you can rest assured the government would save the day. These banks are too important too fail.
Not really too important as much as too many good assets. Just because a bank made bad decisions and can't keep going doesn't mean there isn't a LOT to salvage from the operation. Basically the old adage, don't throw the baby out with the bathwater.
We saw an example of this with the Silicon Valley Bank collapse. Their FDIC insurance saved thousands of startups from losing everything. They actually covered more than the $250k for some overleveraged VC firms which is both scary and comforting at the same time. https://fortune.com/2023/06/23/fdic...s-it-bailed-out-silicon-valley-bank-collapse/

What actually happened is that the government stepped in, assumed ownership, and then sold off the assets to other banks. They also then made all the other banks in America refund the money it cost the government to take that action. It is part of the banking rules in the US. I see this as a good system and not really scary.

The FDIC insurance is more for small banks or credit unions. Once a bank gets to a certain size, when it "fails" it will just have its assets redistributed to other banks and then all the other banks make up the deficit. As another poster mentioned, if this system fails then it won't really matter where your money is since it will mean a global impact to currency essentially rendering it worthless.
 
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Where in EU can I get such yields. ING is barely 1.26% savings. Please advise.
Nowhere... But the general interest rate in the US is higher than in Europe:

US Treasury 1Y: 4.8 %
German Federal Treasury 1Y: 3.6 %

An equivalent difference applies to EURIBOR vs. US interest rates (LIBOR, unfortunately, ceased to exist last year).

In addition, European banks do not seem to need of a lot of cash, i.e., the margins are very poor. This, in turn, indicates the economic activity is at a low level, as there is no need for investment money.

I managed to squeeze EURIBOR 3 months – 0.5 % (i.e., approximately 3.4 % today) out of one of my banks for 50+ k€. In real money that is pretty much zero taking the inflation (~2.9 % p.a.) into account.

An important difference between the US and the Euro area is the amount and structure of private debt. The total credit card debt just broke some quite unbelievable records in the US, and the interest rate of that money is very, very high. Have a look at the EBIT of Visa or Mastercard.

In principle, the inflation difference between the US and the Euro area should lead to devaluation of the USD vs. EUR. Large currencies do not always obey the simple theory, though. In the long run, the views of the US economy are better than those of the European economy due to a more favourable demographic structure.
 
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Nowhere... But the general interest rate in the US is higher than in Europe:

US Treasury 1Y: 4.8 %
German Federal Treasury 1Y: 3.6 %

An equivalent difference applies to EURIBOR vs. US interest rates (LIBOR, unfortunately, ceased to exist last year).

In addition, European banks do not seem to need of a lot of cash, i.e., the margins are very poor. This, in turn, indicates the economic activity is at a low level, as there is no need for investment money.

I managed to squeeze EURIBOR 3 months – 0.5 % (i.e., approximately 3.4 % today) out of one of my banks for 50+ k€. In real money that is pretty much zero taking the inflation (~2.9 % p.a.) into account.

An important difference between the US and the Euro area is the amount and structure of private debt. The total credit card debt just broke some quite unbelievable records in the US, and the interest rate of that money is very, very high. Have a look at the EBIT of Visa or Mastercard.

In principle, the inflation difference between the US and the Euro area should lead to devaluation of the USD vs. EUR. Large currencies do not always obey the simple theory, though. In the long run, the views of the US economy are better than those of the European economy due to a more favourable demographic structure.
Thanks for your reply. I'm still pretty socked in that in US folks are getting 5%+ on their savings basically no strings attached and in EU (Netherlands specifically in my case) I'm lucky to be getting 1.26% (perhaps 1.5% if I'm willing to commit to some terms).

Makes me wonder where to invest money if I want returns in the 5-7% range if I'm based in EU. Leaving everything in savings account @ 1.26% seems... like a wasted opportunity.
 
We can recommend everyone to have like 5 accounts and then fill them monthly and send the money to where you get high interest. Have a maximum per bank to not exceed and add more accounts.

Every bank may go under anytime so always have multiple banks.

I Allegedly Dan posting in here??
 
Or keep your money at home in a safe. Why hand over money to the banks and get up to 5.25% when they are loaning out your money for double or triple that in interest. I don’t save ANYTHING with banks and have a fireproof safe at home buried where nobody would find it. My money, my rules and nobody profiting off me.
 
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Thanks for your reply. I'm still pretty socked in that in US folks are getting 5%+ on their savings basically no strings attached and in EU (Netherlands specifically in my case) I'm lucky to be getting 1.26% (perhaps 1.5% if I'm willing to commit to some terms).

Makes me wonder where to invest money if I want returns in the 5-7% range if I'm based in EU. Leaving everything in savings account @ 1.26% seems... like a wasted opportunity.
Yep. But it goes both ways. If you tell the folks on the other side of the Pond what you pay for your mortgage, they might be a bit surprised... The average for a new mortgage is around 4.3..4.5 %, and that is really a lot in the European context. This is for a variable rate (EURIBOR + margin), 10-year fixed would be somewhat less, maybe 3.5 %. I would be surprised if it was more in the NL.

If you want to benefit from the higher interest rates in the US, just get US bonds from a grocery near you... Just be aware that exchange rates may fluctuate 10 % in a short period of time. (My personal guess is that in the long run the US economy will grow faster than the EU, and thus a significant share of my portfolio is in US instruments. But my crystal ball is not any better than anyone else's.)
 
Milli Bank @ 5.5% FDIC insured
Was going to mention Milli.

Only problem is that Milli like UFB Direct Hoover up your personal info and then reject you.

It’s not clear what criteria they use to do this given that 3 family members with 800+ FICO can’t get accepted.

Feels like bad faith and I wonder if they are selling personal information somehow.
 
Just want to say SoFi should have an * next to it. To get that rate you have to either meet monthly quotas for deposits or do direct deposits from your employer (among other things). Apple doesn’t seem to have a catch and the same with Capital One from my experience.
 
You're not "literally losing money." You didn't have the money to begin with. You're just not making as much money as could otherwise.
That’s petty semantics. If you could make $10 but through inaction or laziness make $8, you lost $2. It’s called an opportunity COST for a reason.
 
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Or keep your money at home in a safe. Why hand over money to the banks and get up to 5.25% when they are loaning out your money for double or triple that in interest. I don’t save ANYTHING with banks and have a fireproof safe at home buried where nobody would find it. My money, my rules and nobody profiting off me.
I sincerely hope for your own sake that you’re joking.
 
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What money was lost? All depositors at all failed banks were made whole.
It was specifically those who were doing investments through the bank and it depended on which branch some of those transactions were made. I can't seem to find the article that went super in depth on which type of investments were covered vs not covered, but it had to do with the type of investment that those entities/people were making at the bank. LOL, it is a bit frustrating because it was fairly easy back in June/July to find tons of information :p but the FDIC actually outline who was going to get their money back and who wasn't. A couple easy examples are the investors of the actual bank itself, etc.. Also, some but not all of depositors with funds spread across multiple branches, such as in the Cayman Islands were in question. Some were recovered while others were not. Sorry I can't seem to find them, but if you can find some of the statements by the FDIC on what the total amounts were, how much was covered, how much was charged back to the other banks, etc.... that also spells out what was not covered
 
I sincerely hope for your own sake that you’re joking.

Or keep your money at home in a safe. Why hand over money to the banks and get up to 5.25% when they are loaning out your money for double or triple that in interest. I don’t save ANYTHING with banks and have a fireproof safe at home buried where nobody would find it. My money, my rules and nobody profiting off me.
Well, that's pretty much the only way to guarantee you'll lose money. In fact, you will lose the exact purchasing power as the rate of inflation. Put more simply:

Buy a coffee for $2.00 in 2023. Inflation increases 5%. You now have $2.00 less in savings.
In 2024, coffee is now $2.10. Inflation increases 10%. You now have $4.10 less in savings.
In 2025, coffee is now $2.31. Inflation increases 10%. You now have $6.41 less in savings.

Now add in the extra costs inflation in housing, taxes, transportation, healthcare, food, utilities and entertainment, and it won't be long until that mattress (fireproof safe) is looking mighty worn and depleted. Now you're trying to live on a Social Security income of $1,200 a month when a coffee costs $6.00. And everything else is just as expensive.

You lose.
 
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Well, that's pretty much the only way to guarantee you'll lose money. In fact, you will lose the exact purchasing power as the rate of inflation. Put more simply:

Buy a coffee for $2.00 in 2023. Inflation increases 5%. You now have $2.00 less in savings.
In 2024, coffee is now $2.10. Inflation increases 10%. You now have $4.10 less in savings.
In 2025, coffee is now $2.31. Inflation increases 10%. You now have $6.41 less in savings.

Now add in the extra costs inflation in housing, taxes, transportation, healthcare, food, utilities and entertainment, and it won't be long until that mattress (fireproof safe) is looking mighty worn and depleted. Now you're trying to live on a Social Security income of $1,200 a month when a coffee costs $6.00. And everything else is just as expensive.

You lose.
Dang!

The way you put that is almost apocalyptic.

Makes the hair on my man-parts want to shrivel up for fear of doing something stupid.
 
So Apple will become what GE used to be?
As long as there is not a Jack Welch who commits accounting fraud and wrecks the company by 1. saddling the company with a groaning amount of debt and 2. picking an absolutely feckless successor Apple won’t become GE.
 
As long as there is not a Jack Welch who commits accounting fraud and wrecks the company by 1. saddling the company with a groaning amount of debt and 2. picking an absolutely feckless successor Apple won’t become GE.
Do you have any credible evidence other than maybe Reddit threads or twitter SOC that there was “accounting fraud“ here during the Welch era? I mean, over leveraging, and running the same playbook and valuing assets at NOT mark to market is technically not anything near fraud.

Truly interested.
 
My Robinhood account has a 5.25% APY, I think Robinhood Gold costs $5 a month and with a little over $1000 in the brokerage earning interest it about covers my charge which unlocks a bunch of other features. I sort of like that my interest covers this charge because for someone like me with fairly little savings, $5 as interest income isn’t going to make a huge impact financially on me.

That said I like that Apple is keeping their financial products competitive and it makes me feel better about having an Apple Card.

Hey how were you able to get 5.25%? They are currently advertising 5%
 
Dang!

The way you put that is almost apocalyptic.

Makes the hair on my man-parts want to shrivel up for fear of doing something stupid.
Locking your money up in a "(fireproof) safe" investment should make you shrivel in fear of your future. The only way to beat inflation long term is in the stock market, maybe real estate if you know what to buy. Bank accounts, bonds, CDs and money markets and gold will always underperform inflation long term. Crypto's only value is in finding the greater fool who's willing to pay more than you did.

No risk, no reward.
 
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Locking your money up in a "(fireproof) safe" investment should make you shrivel in fear of your future. The only way to beat inflation long term is in the stock market, maybe real estate if you know what to buy. Bank accounts, bonds, CDs and money markets and gold will always underperform inflation long term. Crypto's only value is in finding the greater fool who's willing to pay more than you did.

No risk, no reward.
I disagree with respect to gold, even though I am not a gold bug. Gold can hold its own. It's not perfect and there can be periods of underperformance. In countries with high inflation they buy dollars and gold. As dollars start inflating away, gold will be the last man standing.
 
Well, that's pretty much the only way to guarantee you'll lose money. In fact, you will lose the exact purchasing power as the rate of inflation. Put more simply:

Buy a coffee for $2.00 in 2023. Inflation increases 5%. You now have $2.00 less in savings.
In 2024, coffee is now $2.10. Inflation increases 10%. You now have $4.10 less in savings.
In 2025, coffee is now $2.31. Inflation increases 10%. You now have $6.41 less in savings.

Now add in the extra costs inflation in housing, taxes, transportation, healthcare, food, utilities and entertainment, and it won't be long until that mattress (fireproof safe) is looking mighty worn and depleted. Now you're trying to live on a Social Security income of $1,200 a month when a coffee costs $6.00. And everything else is just as expensive.

You lose.
I don’t lose. I don’t lose a thing. I don’t have credit cards, loans, debts of any kind. I want something, I go to my safe. My kids have no debts of any kind and dip into the safe and leave a little note saying how much they’ve taken. It’s worked out well. My 3 kids have no debts of any kind, same for me, same for my wife and I’ve even let some of the immediate family, that i trust, use some and replace it. I’m uninterested in playing the system to gain money when I can be self sufficient and live MY WAY. People are free to disagree but they, mostly, are the very people that shuffle balances from one 0% apr credit card to the next to the next to the next. I have better things to do with my time than researching which card gives me the most of this and that. I’m self sufficient, owe nobody a single penny and have enough money in my safe (which would take anybody else a long time to find) to last me and my wife/kids a looooong time. In fact I’ve just dropped another £2k in it this morning :). No debts, house paid for, car paid for, motorhome paid for, total freedom. Others can live their way and I’m fine with that.
 
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