I noticed US Bank’s savings interest rate is now down to 3.80%. They seem to require a minimum balance of $25,000 to get the full rate.
Anyone else here with a savings account at US Bank? I recently opened one, moved $5,000 over, and was hoping for at least 2.80%, but it’s showing as 0.00% so far.
Here’s the link I was checking if anyone’s interested: https://www.usbank.com/bank-accounts/savings-accounts.html
Interest rates keep dropping. I’m just letting my savings sit where they are for now and not going through the hassle of rate shopping.
Cove said:
Interest rates keep dropping. I’m just letting my savings sit where they are for now and not going through the hassle of rate shopping.
Same here. Most of my money is in mutual funds, so I’m not stressing over the small amount I keep in my bank account.
No surprise here. Rates are going to keep dropping. With a new administration change, it might even speed up. For long-term savings, better off locking in a CD rate or buying U.S. treasury bonds.
Savings accounts are best for short-term needs or emergency funds. If you’re looking for growth, the stock market is the place to be.
JoyLyn said:
Savings accounts are best for short-term needs or emergency funds. If you’re looking for growth, the stock market is the place to be.
Right. Cash and cash-like assets just hold your value, not really build it. Treasury bonds are safe, but they won’t get you much growth.
JoyLyn said:
Savings accounts are best for short-term needs or emergency funds. If you’re looking for growth, the stock market is the place to be.
Totally agree. My Vanguard cash account also dropped to around 3.9%. It’s just how it goes. Savings accounts are really just for emergencies or saving up for near-term goals like a car.
JoyLyn said:
Savings accounts are best for short-term needs or emergency funds. If you’re looking for growth, the stock market is the place to be.
True, though sometimes you have to keep a large amount in the bank for short-term plans. Last year, I held a large sum after an inheritance because I knew I’d be using it soon to buy a house.
Over that time, I earned a decent amount of interest even though it wasn’t invested.
@Riley
That’s still short-term saving, which is what savings accounts are good for.
JoyLyn said:
@Riley
That’s still short-term saving, which is what savings accounts are good for.
I get what you mean. I just meant that sometimes it’s a bigger amount.
@Riley
For big amounts, T-bills might be better. You’re covered above $250k with them, and there’s no state income tax on T-bills.
If you’re planning to buy a house soon, rolling T-bills can be a smart choice. They’re liquid enough, and they generally pay more than high-yield savings accounts.
The Fed recently cut interest rates, and they might do it again soon. It’s a mixed bag: mortgages get cheaper, but savings accounts and CDs pay less.
Darby said:
The Fed recently cut interest rates, and they might do it again soon. It’s a mixed bag: mortgages get cheaper, but savings accounts and CDs pay less.
Surprisingly, mortgage rates are actually going up.
I found US Bank too complicated, so I closed my accounts there. The fees didn’t make sense either.
Rates can change daily, and they have to disclose it due to Reg DD (Truth in Savings). US Bank does make this clear, so always keep an eye on that.
If you’re looking for better rates, there are other options out there: https://yieldfinder.app/
Skip the banks and consider a money market fund like SPAXX.
US Bank’s money market accounts are still around 4.16%, so that’s worth looking into.
Big banks like US Bank have low returns because people just leave their money there. Banks profit big from that.
For better rates, try a high-yield savings account (HYSA) instead.
niko said:
Big banks like US Bank have low returns because people just leave their money there. Banks profit big from that.
For better rates, try a high-yield savings account (HYSA) instead.
Every HYSA rate will be going down soon with the Fed cutting rates. If yours hasn’t dropped yet, it’s probably coming.