From 51¢ to $10.19!

Discussion in 'The Pub' started by 2HBStrat, Jul 13, 2019.

  1. 2HBStrat

    2HBStrat Member

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    The bi-annual interest check on my $1000 CD has been 51¢ for several years. My latest one is $10.19! A substantial increase! I'm not even sure how to figure what percentage of increase that is. Have interest rates gone up so much for that much of an increase?

    I feel like splurging!
     
  2. A-Bone

    A-Bone Montonero, MOY, Multitudes Gold Supporting Member

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    It's close to 20 times, or nearly 2000% of what it was.

    To answer your question, no, interest rates have not gone up that much.
     
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  3. AaeCee

    AaeCee Member

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    You keep renewing a $1000 CD? Hey, time to take some advantage of the rate rise and make it $2000 to really cash in!

    But seriously, over the last five years or so, the shortest term US rates have gone up a lot from near 0% to around 2%, but the low number was at an abnormal level from the lingering effects of the 2008 financial crisis. Longer term rates also went up a lot on a percentage basis, but not nearly as much.

    That said, we're still talking about historically low rates, where small apparent increases in nominal terms can translate to large increases in percentage terms. It's all about the 'basis point' (better known as "bips" in industry parlance).
     
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  4. 2HBStrat

    2HBStrat Member

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    Any thoughts on a better investment plan?
    That's what I thought...any ideas about what could explain the difference?
     
  5. AaeCee

    AaeCee Member

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    I dunno man, the S&P 500 index has gone up north of 50% over the last five years, so there's that. Your same $1000 investment would have been worth over $1600 on a compounded basis, rather than the app. $1030 that you've realized. :dunno
     
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  6. Eric Rowland

    Eric Rowland Supporting Member

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    suggestions? ......
     
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  7. 2HBStrat

    2HBStrat Member

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    My former 401K which is now an investment has not realized anything like that much of an increase...
     
  8. AaeCee

    AaeCee Member

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    "Investment" is not a homogeneous term. It all depends on what the components of the plan included.
     
  9. 2HBStrat

    2HBStrat Member

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    I realize that...
     
  10. PLX

    PLX MENSA member, Astronaut, Dated Your Mom Once Gold Supporting Member

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    Buy land.
     
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  11. ChampReverb

    ChampReverb Silver Supporting Member

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    Buy those strings you always dreamed of ...on the installment plan.

    Get the high E and B now...

    -bEn r.
     
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  12. lendryesky

    lendryesky Member

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  13. MrSteve

    MrSteve Member

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    If by biannual, you mean twice a year, you are currently earning about a 2% apy, which is better than most banks for a CD but not the best rate. Currently you can get 2.85% on a 1 year CD if a CD is the right vehicle for you. What are your goals for the $1000?
    https://www.depositaccounts.com/cd/
     
  14. dhdfoster

    dhdfoster Silver Supporting Member

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    You could always ask your financial institution. I think they could give you the correct answer.

    Ahhh, never mind...
     
  15. Motorhed

    Motorhed Member

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    Convert to vinyl, of course.
     
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  16. 2HBStrat

    2HBStrat Member

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    I mean at this point just the best return. I've had 5 CD's that my then wife made me buy back in the 80's and they've just been setting there, but I think there could be a better way...
     
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  17. MrSteve

    MrSteve Member

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    If it is money you plan on holding on to for 15 years or so and can handle some fluctuation, you could put it in a stock index fund. At $1000, you wouldn't have enough to open an account at Vanguard, but Fidelity or Schwab would be good. If you can't handle or afford fluctuations in value, you are best keeping it in a CD. Some would say a bond fund but as low as yields are right now, I would say CDs are better at this point.
     
  18. 100JH

    100JH Member

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