10.07.26 Interest Rates: Both Sides Of The Coin

But right now, I wanna tell you, I looked at what the nation's biggest giant monster mega bank is paying on savings accounts right now.

You ready? I mean, it's an eye-popping number.

I mean, I just want you to think about how rich it's gonna make you over time as a saver.

Chase, by far the nation's largest bank, I assume the largest bank in the world, is paying savers point zero one percent.

I mean, an insult to your intelligence.

And they're not alone.

If you look at what the big banks pay in savings, it's essentially zero on your money.

And there's huge numbers of hundreds of billions of dollars, maybe past a trillion, that people have sitting in these savings accounts with the big banks that are just laughing behind your and my back, ripping you off at a time that savings accounts are earning, if you shop around, a full interest point higher than they were earning just a few months ago.

So today, without a heavy lift, you can move your savings, generally with an online bank, but it could be a credit union, could be a small community bank.

You can now earn four and a half percent on your idle savings.

And you don't have to be someone with huge money to earn this.

No.

Actually, a lot of these savings accounts, you need a dollar or fifty dollars or a hundred dollars or whatever it is, and you're earning four and a half percent.

When's the last time you looked to see-- Let's say you have a high-yield savings account, as they're marketed.

When's the last time you looked to see what they're actually paying right now? And what I want you to be earning is the target of four and a half percent or more.

Now, let me tell you what's going on behind the curtain.

The world has lost faith in the US government and the spending by the US government.

And so the reckless spending that we're not paying for, increasing the debt of the United States and the deficit we're running right now has made the big players around the world say, "We don't trust the US anymore." So the interest rates that the federal government is having to pay to finance the debt that they sell in Treasury auctions going up, up, up, up, plus the inflation problem we have.

So that has led to interest rates overall moving up.

The mortgage rates, what you pay on a home equity line, what you pay on a credit card, uh, pretty much anything you're borrowing money for.

So the other side of the equation, savers should earn more.

And if you are someone who has a good bit of money, the real opportunities may be for you in the Treasury market or in municipal bonds if you're in a really high tax bracket.

This is a time you don't just sit on your hands with your savings.

From, uh, modest amounts to big amounts, you need to actively manage how that money is working for you in overcoming inflation.

And as for the US, we're all responsible for the fact that the government is spending money willy-nilly it doesn't have, because ultimately it's a reflection of you and me as individual citizens.