[Whatever]

Why, with all the rants and the fact that banks are now earning money and paying their CEO`s record salaries and bonuses can't they throw us peons a bone and raise the interest rates on personal savings?

[zcaveman]

That is the $1,000,000 question. By raising the interest rate they would get more out of us at income tax time since the interest is taxable.

I have written my reps and senators several times and have yet to get an answer.

[CaptJohn]

The large banks that feed the smaller ones are greedy. Don't expect much. Try credit unions.

[Roaddog53]

Banks and credit unions remember both work on the same philosophies as business. Except for the silly fees banks charge to help provide for their additional infrastructures, all financial institutions work on the simplified process of Loans = Income, Interest Savings = Outflows. Thus by raising their savings interest to customers, to maintain their "spread", they would have to raise Loan interests. That would make them uncompetitive in acquiring income. If they all did it, than consumers would also complain or not afford some house/car/home equity, and other loans. I over simplified it but that is the short story.

[mulligan]

How about re-issuing those pesky bonds we all love at a lower rate??

[zcaveman]

Originally Posted by Roaddog53

Banks and credit unions remember both work on the same philosophies as business. Except for the silly fees banks charge to help provide for their additional infrastructures, all financial institutions work on the simplified process of Loans = Income, Interest Savings = Outflows. Thus by raising their savings interest to customers, to maintain their "spread", they would have to raise Loan interests. That would make them uncompetitive in acquiring income. If they all did it, than consumers would also complain or not afford some house/car/home equity, and other loans. I over simplified it but that is the short story.

I might sound selfish but I don't care about the interest rates they charge for house/car/home equity, and other loans. I just want better interest on the money that is in my accounts that they are probably using to give these house/car/home equity, and other loans.

[Whatever]

Originally Posted by Roaddog53

Banks and credit unions remember both work on the same philosophies as business. Except for the silly fees banks charge to help provide for their additional infrastructures, all financial institutions work on the simplified process of Loans = Income, Interest Savings = Outflows. Thus by raising their savings interest to customers, to maintain their "spread", they would have to raise Loan interests. That would make them uncompetitive in acquiring income. If they all did it, than consumers would also complain or not afford some house/car/home equity, and other loans. I over simplified it but that is the short story.

Understood, however, the point is that they are making and have MADE substantial monies and are paying out only to the nearest and dearest, i.e. themselves, while we who hold the bulk of their largesse are getting a mere pittance and/or lip service. Show me the money!!