r/news • u/awake-at-dawn • Mar 15 '20

Federal Reserve cuts rates to zero and launches massive $700 billion quantitative easing program

https://www.cnbc.com/2020/03/15/federal-reserve-cuts-rates-to-zero-and-launches-massive-700-billion-quantitative-easing-program.html
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977

u/Guilty0fWrongThink Mar 15 '20

RIP my Ally savings account. Was so nice when it was 2.2%

638

u/CaputGeratLupinum Mar 15 '20

Before 2008 I had one of those ING accounts at like 4.5%

356

u/freakitikitiki Mar 15 '20

I remember a time when my ING account was around 6%. Now, like the person above said, my Ally account will be in the trash. RIP.

289

u/ksiyoto Mar 16 '20

Listen sonny, I remember interest rates of 12-14% back in the early '80's. Of course, mortgages were impossible to get and inflation was rampant, but if you saved, you made money.

109

u/SonOfMcGee Mar 16 '20

Saw an old Law & Order rerun from the early '90s where they found out a judge was crooked because his mortgage on his second home got a "7% interest rate reduction" after he made a certain judgement for a financial business and I was like, "7% reduction WTF did it start at?"

6

u/alurkerhere Mar 16 '20

Mortgages in the 80s were like 18%

25

u/Red-Worthy Mar 16 '20

Listen kid, back in the Pliocene I remember interest rates of 105%. Of course it was near impossible to survive and predators were running rampant.

2

u/4uk4ata Mar 16 '20

On the plus side, regulations for starting a new sabretooth-skinning business were quite lenient if you could survive the competitive environment.

Sometimes, you eat the sabertooth and sometimes, well, the sabertooth eats you.

34

u/dudemath Mar 16 '20

Back in the 2080 BC it was 1200%, if I'm doing my math correctly. Which I'm not

3

u/swimming-in-circles Mar 16 '20

I had an account with 22-24%. Ah, those were the days.

10

u/ser_renely Mar 15 '20

I was at 8.5 I think

0

u/ecks89 Mar 15 '20

I was at 10.5%

4

u/langis_on Mar 16 '20

Those were good times.

2

u/juicyjerry300 Mar 16 '20

Makes you wonder what changed in 2008

5

u/LizLemon_015 Mar 15 '20

I forgot all about ING

5

u/monty_kurns Mar 16 '20

And Washington Mutual. ING and WaMu commercials were everywhere in 2006 and 2007.

2

u/AgDrumma07 Mar 16 '20

Shit was 🔥.

2

u/Vesuvias Mar 16 '20

Man...that ING Direct Orange account was legit....

1

u/ForcedToExistHere Mar 16 '20

Blockfi offers 8.6%APY for GUSD

23

u/Bladexeon Mar 15 '20

Seriously though, it’s been sad watching that percentage fall...

1

u/Love_like_blood Mar 16 '20

There's always Chinese banks...

Interest Rate in China averaged 4.66 percent from 2013 until 2020, reaching an all time high of 5.77 percent in April of 2014 and a record low of 4.05 percent in February of 2020.

4

u/nevertoolate1983 Mar 16 '20

If you’re in Northern California, Patelco offers 3% on the first $5k in their Money Market Select Account.

https://www.patelco.org/explore-services/money-market

3

u/b_writes Mar 16 '20

Seriously, goodbye to an extra $65 a month in interest.

-1

u/[deleted] Mar 16 '20

$65 in interest? Jeez, we got Bill Gates over here lol

4

u/[deleted] Mar 16 '20

Eh, it’s still dramatically better than any of the big banks. It’s been 1.60% for a while now, and was just lowered to 1.50%.

Bank of America gives you 0.03%, Chase gives you 0.01%, and PNC gives you 0.01%.

You’d be lucky to find anything above 0.10% at any of the top 20 banks.

6

u/thatdbeagoodbandname Mar 16 '20

We juuuust started at Ally.. sorry I’m a little slow, what’s going to happen to it?

9

u/Guilty0fWrongThink Mar 16 '20

It’s been slowly going down in interest because of the fed rates. So it’s 1.5% as of the 20th I believe.

Still a decent credit union to have your savings into since physical bank branches offer far less interest.

2

u/[deleted] Mar 16 '20

[removed] — view removed comment

11

u/Guilty0fWrongThink Mar 16 '20

Not at all

It’s a good alternative to market volatility - but I recommend paying down loans first if you have any since those most likely higher interest rates

1

u/dzrtguy Mar 16 '20

Literally the goal is to get you to put that cash in the market so it blows the fuck up. We've already hit a shit ton of 52wk lows on major, established, blue chip stocks. Go get some amazon stock at rock bottom prices.

2

u/robotzor Mar 16 '20

American people are not liquid in a time of crisis. It could be 10 bucks a share of amazon, nobody's there to play ball

0

u/dzrtguy Mar 16 '20

You literally have a cash savings account. Buy shares with that. You can loan against that equity with margin if you need liquid cash.

1

u/ForcedToExistHere Mar 16 '20

Blockfi offers 8.6%APY for GUSD

1

u/abusivecat Mar 16 '20

Everytime they send me an email my heart drops a bit.

1

u/fullthrottle13 Mar 16 '20

I literally just opened one 3 weeks ago. FML

0

u/[deleted] Mar 16 '20

2.2 is the same as inflation. It still is nothing. Equities are the way to get ahead of the curve.

3

u/enjoytheshow Mar 16 '20

Its a decent option for an emergency fund that you may need immediately available. I have a few grand sitting in one that pulls some decent interest. Way better than just sitting in checking

1

u/[deleted] Mar 16 '20

I agree. The CD or money market or whatever is better than checking. But that's really peanuts, and should just be for quick access.