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points by cowlevel 1 day ago | 0 comments

The interest rate banks pay you has been 0% since before covid

[–] jagraff 1 day ago

That's definitely not universally true; my US bank pays 3.2% interest on savings

[–] abighamb 1 day ago

And what is inflation?

[–] ImPostingOnHN 1 day ago

A general, continuous increase in the overall price level of goods and services in an economy over time.

Not really related to the discussion here though, since we were determining whether the interest rate is zero.

[–] xp84 1 day ago

But if they pay you roughly the inflation rate as interest, doesn’t that mean the use of your money is roughly free to them?

[–] ImPostingOnHN 1 day ago

Yes, and alternatively you could invest your money in whatever they'd invest it in, and capture more of your money's value. You could even invest in risky things like stocks with your money, whereas they can't (with your money).

[–] jachee 1 day ago

Any interest rate that is equal to or less than inflation is functionally zero (or less).

[–] ImPostingOnHN 1 day ago

That is also true.

[–] TFNA 1 day ago

This is a thread about a EU bank, and banks in the EU both have some standard interest rate on savings accounts, and moreover might offer time-restricted savings accounts with an even higher rate. That said, they track poorly with inflation compared to actual investment.

[–] louthy 1 day ago

I get 4% (instant access savings account with Revolut, UK)

[–] wtch98 1 day ago

My bank in the uk pays me 3%

[–] Betelbuddy 1 day ago

Zero is also a number, although not all Mathematicians accept that. 0% interest does not change the essence of the monetary relationship with your bank, or the risk profile.

[–] tekla 1 day ago

Ally has been 2% from before Covid and currently is at 3.2%

[–] lotsofpulp 1 day ago

I have been able to easily find a US bank that pays roughly SOFR minus 25 basis points for FDIC insured savings accounts, even before 2020.