I discovered our passbook savings account at our local bank is paying a whopping 0.17% annually. Could they get closer to Zero?
If we had $1,000 in there for one year, it would earn $1.70 or slightly more than 14 cents a month.
Where is the motivation to save? Safety. We know that our bank accounts are guaranteed or insured. So we continue to park our budget savings in our local bank.
By budget savings, I mean what we will need to cover parts of our budget that lay ahead. Like our real estate tax payment due June 1 and summer vacation trips.
One good thing, if our earnings are less than $10 for 2009, the bank will not send us (or the IRS) a 1099-INT form reporting the unearned income.
'til later
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