What is a realistic return percentage that is good for your savings accounts? I guess I am happy with any sort of money the bank deposits in my savings account, but when shopping around for a savings account, what is the percentage number you hunt for?
Here in the US, you're currently going to get literally almost nothing in your standard savings accounts with major banks. I fondly recall back 8-9 years ago when the economy was going full steam ahead when I was getting 5+ % in savings with major banks. You'll probably do significantly better with a savings account with a local credit union, but remember that they are able to give you that higher rate on your money because they are taking more risk with depositors' monies than major banks are. http://www.bankrate.com/finance/checking/high-yield-credit-unions.aspx
Indeed, the rates on savings accounts, mutual funds and, frankly, certificates of deposits (CDs) are an absolute joke here in the US. I don't see it changing, at least significantly, any time soon. The Fed hasn't raised rates in forever, but they will have to eventually.
Anywhere in the west the rates are seriously low. So right now you can't really hope to get anything significant but it's still worth it to compare offers from different banks. If you don't need the cash for a while then it might be beneficial to look at other relatively safe instruments (bonds are the first to come to mind)
I think the interest rate on my current savings account is like 1.5% or something very menial like that. It is pathetic and I would love to figure a way to save more money and get more return for it. I am open to any ideas you all might have for me.
Interest in savings accounts are a joke now that we've compared it in this forum. I thought mine was high at 1.7% but it seems like the average for banks now. Low risk investments are better than this and yes local credit unions can give you a higher rate but make sure they aren't close to getting bankrupt or something like mine did.
In my country, the main banks offer an interest that ranghes from 1% to 3,4%. Most of them offer somewhere 2%, however, while the banks that offer a bit more are untrustable from my point of view. This is why a lot of people have started to invest in a local bond fund, which offers about 4% per year.
Besides having a few bucks in a high-interest checking account at my CU, I also prefer to buy a little short term corporate and municipal debt here and there rather than today's zero interest savings accounts and near-zero CD's.
