Savings accounts are a fraud

Why Are Americans Savers Being Punished, While U.S. Banks Are Making Record Profits?

via PGG Email Msg: Sep. 14, 2016

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Federal Reserve Chair Yellen and the U.S. Government Eye Negative Interest Rates on US Savings Accounts.

“Like money in the bank.” Remember that saying? Saving money was always the ultimate measure of security in life. Money may not buy happiness, but it does provide peace of mind, and of course it’s an important tool for building wealth. That’s why every American needs to know what’s happening to their savings.

Your savings are losing value every day. Recent events have had a profound impact on interest rates. We’re seeing an actual threat to our savings and wealth unfold before our eyes.

Bank Account Interest Rates are Dwindling to Nothing. 

When the savings account was first invented, they paid 2.5 – 4% interest. Today, regular passbook savings accounts pay as little as .01%. That’s one one-hundredth of one percent.Short-term, 6-month CDs paid more than 10% in 1984, and they were still paying around 5% in 2000. Why then, just two years later, did they drop to below 2%?  With Inflation and Negative Interest Rates, Your Buying Power Could Be Slashed by Two-Thirds in Just 15 Years. Fact: Savers will never get rich because the system rewards risk-taking. As Warren Buffet famously said, “I feel sorry for those who have clung to fixed-dollar investments. . . . It’s brutal. I don’t know what I would do if I were in that position.”

A Savings Account Paying Less Than Zero?

It’s hard to imagine that things could any get worse than 0% interest rates, but the central banks of the world have found a way to do it. They’re starting to drive rates below zero – which means you pay them to hold on to your money.In Switzerland, in November 2015, the Alternative Bank Schweiz became the first to charge customers a negative interest rate, as much as -0.75%.That means a Swiss account holder with $100,000 would pay $750 for the privilege of letting the bank use their money for one year. You’d literally be better off burying your money in the backyard!
Robert Kiyosaki said, “consumers shop for bargains and try hard to save money that is not really money. That’s another reason why the rich are getting richer.”Others have followed Switzerland’s lead. The Bank of Japan dropped its rate to less than zero for the first time ever in January 2016, at -0.1%.U.S. banks aren’t far behind.

And even if the rate doesn’t go below zero, with interest on savings at just a fraction of 1%, savers are losing ground against inflation. Your savings’ buying power will be lower a year from now than what it is today.

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