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I remember 13 years ago my credit union offered 7% interest on CD's. It was for their 70th anniversary, but in general CD rates were higher before the great recession. Will we ever see decent rates again?
CD rates have more than doubled in the last year or two. Of course, that's from below 1% to around 2%, but you have to take your wins where you find them.
The very high CD rates of yore would have to be tied to much higher lending rates and probably a much higher rate of inflation. Again, take your wins where they are.
Higher rates and higher inflation tend to cancel each other out ....rates only go higher when inflation expectations are higher ..it is real returns that count not nominal
My first job was in a bank in the early 1980s. The CD rate was around 17-18%. The retired people were thrilled. Now, I don’t know anyone who has invested in CDs for years.
I remember being thrilled when I got a mortgage at 8-1/4%
I know people who paid off 15% mortgages... couldn't refinance, didn't want to move, paid that horrendous load over 20 years or more.
My understanding is that this is what flattened the Japanese economy over the last 20 years... Many consumers took on an enormous debt load during the boom years, and things like bankruptcy are simply not done. Paying off a condo became a generational thing.
Between savings accounts with essentially zero interest, and market investments, there's not many places to park middle-sized money besides CDs, even if at paltry rates.
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