Do We Still Make Money from Our Bank Savings?
By fortknox75
@fortknox75 (842)
Philippines
June 3, 2008 7:09am CST
I have been saving my money in the banks for years now but it's very frustrating to see how low the interests I get from them even if I put them in the time deposit. The sad part is that the interest I earned is still deducted with tax. It seems that the interest I earn from my banks can no longer keep up with the inflation rate. So I guess it's not safe to put money in the banks anymore because I just lose from inflation. Any suggestion where to put the savings that will still make me some profit?
4 responses
@ketybhagat (4123)
• India
6 Jun 08
Banks are very safe and money is even safer, but as you say, the rate of interest is poor. How can retired people or old people live off interest which is so poor, one cannot even run the house for the first few days of the month. I would suggest mutual funds only, because in this case, they invest in shares and share the profit. We may or maynot be payed by them, depending on their performance, so it is even worse. Post office savings give around 9% to senior citizens. maybe that would be the best bet.
@fortknox75 (842)
• Philippines
6 Jun 08
yes, I agree. even mutual funds are risky since they invest the money in the stock market. and when the stock market is down, you will also lose some amount. although losses in mutual funds are lower than directly investing in the stock market. if the post office savings is 9%, then that is better than what the banks give you for your savings. i think that is a better alternative to banks. thanks for your feedback.
@renagades (342)
• India
3 Jun 08
I too have the same frustrations . But i think put money in bank is safe than any other saving organizations. If you need more interest, then go for some trusted MLM companies . They pay more interest for your money , but they are not safe when compared to that of banks !
@fortknox75 (842)
• Philippines
3 Jun 08
renegades, do you still fell safe to out your money in the bank when you lose some amount despite the interest they give because of inflation? MLM will be a very good alternative if you have connections and want to invest your time with the business. But I still don't want to try MLM. Maybe Mutual Funds will be a better alternative to banks, or Cooperatives that gives higher interest than banks.
@stbiii0 (92)
• Philippines
3 Jun 08
I have also the same dilemma and frustrated on my earnings, it's all hard earned you know and we can't even do nothing about it. Unless someone out there who's money whiz can help us. So if you have any tips for us, that would be the nicest thing you can share.
I have done some research and mostly advise mutual funds or any trust funds. But it seems the market is down in this times. And I'm looking for the very minimum risks involved, if there such a thing.
Help us please?
@rkwait1971 (7)
• United States
6 Sep 08
I have found that online banks tend to have better interest rates on regular savings accounts than you would find at a regular bank, without having to lockup your money in a long term CD.
There are several online banks right now that are paying up to 3.50% on regular savings accounts, and most of them have no minimum balance either.
This might end up being a better option for most people to park their money for a while, and take from it when you need it. checkout fnbodirect.com, or hsbcdirect.com, just to name a few.
