Why do you keep your money in a bank that pays no interest?

[lightbulb27]

Some banks pay 3.5% USA others pay 0%, like Chase Bank

The bank is taking your deposits, multiplying it by something like x10 and lending it out at 7% or gambling it in the markets.

Why do you keep $ there if you can be paid to store your money?

Convenience?

Pay no attention to the man behind the scenes!

Jamie Dimon CEO Chase Bank, $39 million a year

Brian Moynihan CEO BofA, $35 million

etc.. etc..

[Ariesman81]

You're losing money to inflation if you keep it in a low interest savings account. There's plenty of other ways to stay liquid.

[lightbulb27]

like what?

[Ariesman81]

Fidelity offers 3.9% monthly dividend on their SPAXX account. PBR/A is at 11% quarterly.

[exitseven]

I do not. I have an interest bearing savings account and a CD.

[exitseven]

Thanks for the MHO😎

[Lliam]

I only deposit enough in my checking account to pay my monthly bills.
I have around $500 in my savings account to cover accidental overdrafts.
My bank accounts are for convenience, not investment.

I have several $thousand in a credit union IRA that pays guaranteed interest. I opened that in the mid-'70s and just let it ride.
I have a small IRA with The Foresters that an uncle gave me when I was a kid. But I already withdrew some of that money.
The majority is in another IRA that is managed by an investment company and grows consistently at a good pace. I transferred that money from a large 401(k) savings to the IRA when I retired in 2010.

[lightbulb27]

any wisdom to share in how to draw $ out of these things. e. g. with SS, IRAs and such, where should you take the $ out. sounds like no Roth IRA.
Im heading that way soon...
all that makes sense...

[Lliam]

I draw some out on occasion when needed. I have 10% withheld for federal withholding. It doesn't effect my taxes much unless I take out a lot.

I used up my Roth IRAs years ago when doing major projects on my property.

[lightbulb27]

ok, thanks for the insights. Im entering a new world with all this stuff... medicate part blah blah and such.
hope all is well!

[Lliam]

I'm doing well. Thanks, bro.

I love Medicare. I was lucky enough to sign up for a part F supplement when it was still available. It covers everything that Medicare doesn't. It's a bit pricey, but I haven't had to pay one dime for any medical stuff - emergency room, eye surgeries, eye doctor visits or medical check ups, dermatology, etc. It has been well worth it.

[lightbulb27]

You are very fortunate. Folks around here are beginning to scream at the marketplace price increases in plans. It's drastic. Combined with other increases, it's a mess... something... will give soon imho.

[Lliam]

Mine goes up every year. Right now it's $268. It will probably go up again in January when I turn 72.

[lightbulb27]

that is wildly cheap relative to the east coast and other areas I've heard. You are fortunate. But I don't have facts, never know someones scenario...

[Nice222]

I keep the bare minimum in the bank. Just enough in my checking to cover monthly bills and the minimum. Everything else is in investments

[noohair]

Since I would not expect to get free services, I put money in a bank to pay bills without having to write checks.

[slatyb]

I don't. Mostly my assets are in equities.

[Cal4576]

Never money in my bank for long enough for that

[lightbulb27]

that's not good, need to store up reserves...

[Cal4576]

Anything I have at the end of the month goes to charities. Mainly those that help the homeless

[lightbulb27]

That's very generous of you, how did you decide that's the right thing to do? Are you referring to the so many immigrants as well wanding around the streets? I saw them all over France. Didn't see so many in UK.
Not convinced it is wise... because you have to take care of yourself first... and things can change fast.
Not convinced the $ is well spent at orgs because of what I see. Maybe you have better emotional services than usa. if you know your organizations then maybe it is?

I appreciate your heart for others though.

[Cal4576]

Successive UK government's have created the problems here with immigration. I work helping asylum seekers among other things and I volunteer with charities helping the homeless here and things like foodbanks.
I just can't sit on money while people are starving or without shelter

[lightbulb27]

That's awsome of you. It pained me to see that going on in France, the people have nothing, begging for change, children without anything. It's the same issue and they agreed to bounce people back and forth at last check. Keep in touch, if we make it to UK again, I'd like to help. What orgs do you work with that you trust, I'll review with my wife.

[Anonymous]

Where do you suggest to keep it?

[lightbulb27]

a bank that pays interest, if have enough us treasuries... for the safest liquid.
possibly other forms if don't need it like gold, silver... but can lose it there too.