CD rates fail to rise yet the Fed has interest rates up to 2.25%

[CountAllVotes]

Why is it that the CD rates have barely moved upward given that Alan Greenspan has raised the rate now 4 times (I think) in the past few months.

I bought a CD in May before the rate increases began at 4.07% interest and now, the same bank is selling the same CDs at a whopping 4.23% a whole .16% more.

It seems like being the rates has gone up from a bottom of 1% to 2.25% that interest rates from saving should have increased also.

I guess they are scraping the bottom of the barrel trying to lure in every last adjusted-interest loan they can lend perhaps?

Any thoughts on this or are we just plain screwed?

:shrug:

Thanks.

[Paleocon]

1. I think we are plain screwed...

Mr Greenspan has lost control of the economy (with plenty of help from Free Spending George W) and we will eventually find ourselves in a similar position to the Japanese, without the luxury of a high personal savings rate.

That's my opinion, your mileage may vary...

[CountAllVotes]

2. yes I guess we're screwed alright

If the plan was right, savings certificate rates should have gone up too.

What a mess and yes, the deficit spending, the need for money for the "war" is all adding to the chaos. In the meantime, the American that tries to save a few bucks in a CD is for the most part screwed. :(

Thank you for your reply.

[Paleocon]

3. Heck that's the least I could do...

I'm sitting on a 6 month CD right now that makes me want to laugh or cry every time I look at my statement...

We can't save fast enough to beat inflation so why save?

I'm going to buy some more gold coins and bury them in my yard in mason jars... LOL...

[CountAllVotes]

4. I was looking at everbank.com

I was thinking about foreign CDs. Seems the best deals they have going are the Mexican Peso and the So. African currency (can't remember what it is call). Pretty lean choice of options for something greater than what is going here in the USA.

Who would have ever thunk? :think:

Very sad situation. I think gold is a good investment if you have the actual gold itself. I am leary of gold stocks personally. That buried jar in your backyard may one day be your real goldmine (and perhaps only one at that!). Yikes!

[Paleocon]

5. I wish there was an easy way to invest in foreign currencies...

Sounds like you are on the right track and are one of the few that are actively trying to find a safe haven for what money you have. I admire you for that. I wish I had started sooner and had lived more frugally sooner.

I only own two gold stocks, KGC and AU... They have done well for me, but I think that is because of the state the world is in right now...

Silver could be a good investment to I think..

Best of luck to you!