I suppose that’s progress. Anyway, I recently observed this advertisement on the T:
That’s right: you give the bank a minimum of $100,000, and you get the privilege of earning 0.8% interest. $800 per year. Meanwhile Sovereign’s three point mortgage with thirty percent down over thirty years is 4.151%. That’s a nice little spread there. Keep in mind, if you’re using just a ‘normal’ savings account, the interest rates are 0.05% – 0.08%; hopefully, you won’t incur any fees along the way either. Which brings us to this article (boldface mine):
If you are a working stiff and can squirrel away $250 to put in a Chase “savings account,” Chase will pay you 12.5 cents a year (.05% APY at a “standard rate”). Furthermore, if you don’t make any transactions, they will charge you $4 a month, meaning that you will be left with $202 at the end of a year, plus your 12.5 cents…
The oligarchy doesn’t keep its money at Chase we bet, at least in savings accounts. We doubt that JP Morgan Chase CEO Jamie Dimon has a standard savings account at his own firm, the parent company of Chase. Why? Because according to the Chase rate chart, any sucker who puts $5 million into even the premium “Chase Savings Plus” still only gets .15% interest. To break that down, that would equal a $150.00 return on every $100,000 lent to Chase each year. Do you think Dimon is a master of the universe with those kind of investment returns?
We call savings at Chase lending because the bank takes your money and charges credit card holders up to around 30%, yielding enormous profits at your expense and the indebtedness of the credit card holders. Meanwhile, you end up as a “good” American saver with literally pennies in interest on your nest egg. Consumer savers at banks like Chase are paying for providing the banks to big to fail with the capital to lend out funds at usurious interest rates for a variety of purposes — or financing their risky investment ventures….
When you review what Chase, under Dimon, offers people who use their savings accounts for storing money, it appears more like a legal scam than any economic boost to society. In fact, it leaves savers losing money just on the basis of inflation, as the banks yield enormous profits with the deposits of hardworking Americans.
There used to be a time when saving money at a bank earned you interest and your money was leant out to build up the community and the local economy.
Now, it’s just more or less a rip-off for all but the most savvy and ruthless investors.
This is robbery, pure and simple. On the other hand, former Treasury Secretary Timothy Geithner just made $400,000 for giving three speeches, so you should feel good about that. Or something.