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0 pointstomatowurst3y ago0 comments

Felt like a wallstreetbets post. Inflation is only at "8%" (still remember back in 2021 calling this a conspiracy), so 8 / 12 = ~0.7% = 700 USD loss / month on 10k deposit.

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prepend3y ago

Of course the only place you can get 8% return on savings is at treasury and he already maxed that out.

He’s lucky to get 1% return on a high yield savings so he lost 1/12 = .08%/month so if it takes two months for a refund he lost $16.66 in interest from where he has it parked. My bank’s high yield interest only returns .05% so if I had acted stupidly and made the same mistake I would have missed out on 83 cents for the two months.

So he’s lucky it’s not a very expensive mistake.

danuker3y ago

> He’s lucky to get 1% return on a high yield savings

To match inflation, all one has to do is to buy nonperishable components of the CPI: fuel, real estate (through a REIT), food, commodities, and so on.

If banking can't keep up with that, it speaks volumes about the competence of the financial system.

prepend3y ago

The problem with those things is that they fluctuate based on other factors than inflation. So if you want to hedge against inflation without risk, you don’t want to buy fuel and stuff.

Savings accounts haven’t kept up with inflation for as long as I remember. So anyone with cash has plugged it into stuff other than mma. I think that’s why these Ibonds are so popular now.

nelsondev3y ago

j / k navigate · click thread line to collapse

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prepend3y ago

Of course the only place you can get 8% return on savings is at treasury and he already maxed that out.

So he’s lucky it’s not a very expensive mistake.

danuker3y ago

> He’s lucky to get 1% return on a high yield savings

To match inflation, all one has to do is to buy nonperishable components of the CPI: fuel, real estate (through a REIT), food, commodities, and so on.

If banking can't keep up with that, it speaks volumes about the competence of the financial system.

prepend3y ago

The problem with those things is that they fluctuate based on other factors than inflation. So if you want to hedge against inflation without risk, you don’t want to buy fuel and stuff.

Savings accounts haven’t kept up with inflation for as long as I remember. So anyone with cash has plugged it into stuff other than mma. I think that’s why these Ibonds are so popular now.

nelsondev3y ago

j / k navigate · click thread line to collapse