37% of Household Financial Wealth in Germany Is in Bank Deposits | Hacker News Reader

37% of Household Financial Wealth in Germany Is in Bank Deposits

apolloacademy.com

3 pointsakyuu7 comments

Remind me, again, what the average passbook interest rate is in the USA? I just checked my bank (Chase) and right now it's... 0.01%.

> what the average passbook interest rate is in the USA? I just checked my bank (Chase) and right now it's... 0.01%

Not sure what the point is. Chase checking accounts pay for access to branches and other Chase products. If you want yield there are checking accounts that provide that. Though the correct move is to use currency correctly by using the transacting medium (cash and checking) separately from the store-of-value medium (money markets and Treasuries).

The point is that it's more efficient for Americans to pay down debt right now instead of parking it in a savings account that is losing money to inflation. So you can't blame them for only having 11% of their assets in a zero-percent account.

And the response was pointing out that using your checking account rate is a bad example because checking accounts are explicitly not for savings and the article wasn’t talking specifically about checking accounts.

It’s easy to get savings account rates above the inflation rate right now and even well known national brands like capital one offer instant online accounts at 3.2% or higher.

No, I wasn't using Chase checking accounts, which pay zero. I was using an actual "savings account" I own which is listing right now at 0.01% monthly.

"Passbook" is the traditional term for these accounts.

Fair enough, savings accounts are an anachronisticity bordering on a scam. The proper products are money markets or Treasuries being bought into a brokerage account.

Passbook accounts are a specific kind of account known for having both lowered requirements (balances, credit of the account holder etc) and for subsequently lowered rates. They are for children and old people.

I admit to glossing over your use of the term but now that you’ve pointed it out it’s an even more egregious use of the wrong tool.

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