I just saw that! It's a bit disappointing! I just signed up for a mobile app because they were paying 2.25% interest. I just received an email informing me they are dropping it to 2% and I haven't even put any money in there yet. I probably won't be using their service as I already have other ones that are paying me 2%.
I was not aware of this until I just read this but it is interesting to see them cutting it for a third time this year. I need to do some more research to understand it better but maybe you would have a little more insight. What are some areas of our personal finances that are directly impacted by federal interest cuts?
Well I thought that Savings accounts and other areas where you earn interest those rates are reduced. On the other hand I think that the interest rates on some loans would be lower, but not on credit cards. (sadly).
Credit cards usually go down with prime. We are only talking .25%. Savings are mostly back under 2% now. So, for me I think its a time for me to save less and buy assets that dont depreciate as fast as the dollar.
One thing I will be doing pronto is asking my credit cards to lower my interest rates in light of the latest interest cut. I read an article (maybe CNBC's website, not sure) yesterday that advised not to wait on the companies to automatically cut your rates, ask for it. So, that's on my list of things to do this week.
@sthom That is smart! I hadn't thought about that but that could really help some people out. @E Allen I have been listing to some Rich Dad podcasts lately and he is constantly saying it is basically futile to save money with the current interest rates. Because while saving money and earning a small amount of interest, you are losing more than that to inflation. I am personally considering investing in some gold and silver.
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