Is Fixed Deposit with 2.6% pa worth it?

[champ1987]

Is it wroth it? It can also have compound interest effect since after each month the next month will be higher

 

[algernon22]

@champ1987 2.6% is kinda low in my opinion. I use a capital one 360 performance savings account and get 4.35% interest. I believe there is also higher at other banks.

 

[champ1987]

@algernon22 How many months? 2.6% thats 1 month so every month can reinvest and enjoy compound

 

[algernon22]

@champ1987 I might be reading your post wrong, you are getting 2.6% per month or per year? Capital One offers 4.35% per year with it paying out monthly which would in turn compound month after month.

 

[champ1987]

@algernon22 Oh same... per year but paid per month. Man I think the best way is just trying to find new job and get raise while moving....

Current job market is harsh unfortunetly

 

[renahay]

@champ1987 Sofi will give you 4.6% APY in their high yield savings as long as you set up a direct deposit.

 

[parkertrace]

@champ1987 If you are in the US no, Fidelity money market which is same as cash is at 5%. Not a bond. Not sure about other countries but there will be basically no “compounding” because it is so low

 

[something4kate]

@champ1987 To give you an idea, Current rate of inflation is 7%~.

 

[michael1958]

@something4kate no it's not

 

[something4kate]

@michael1958 How you gonna dismiss without a counter metric?

 

[michael1958]

@something4kate literally just google "current inflation rate" and you'll see it's 3.1%

 

[something4kate]

@michael1958 Really because I was under the impression the CPI had the way it's calculated changed throughout the years?

Wouldn't that adversely impact the rates?

 

[michael1958]

@something4kate I don't think the methodology has changed substantially between last year and this. What are you basing the 7% figure on?

 

[something4kate]

@michael1958 You either a bot spreading misinformation or just plain not informed.

How interest compounds so does the interest rates from previous years.

7% Figure follows the peak of June peak of 9.06% from 24 months ago instead of 12 months.

 

[michael1958]

@something4kate so you don't believe the bureau of labor statistics then i take it?

 

[something4kate]

@michael1958 As you're aware the formula for CPI has been changed, so as informed consumer, it only makes sense, no?

 

[michael1958]

@something4kate Ok cite me a source for your 7% claim, I cited the BLS which apparently you don't put any stock in

 

[champ1987]

@something4kate I mean better than nothing right

 

[johhny]

@champ1987 Online account , lending club pays 4.65% APY. no minimum balance, free STAR ATM.

Don't lock your money in a CD if you might need it- you'll lose the interest if you won’t hold it until it matures.

 

[champ1987]

@johhny I got $4k put there as an emeegency fund too so rarely will need to pull out