Charles Schwab, from yesterday's Wall Street Journal, talks about the flip side of near 0% short-term interest rates. Low interest rates are helping the banks, but frightened savers are getting something like 75% less income from those same banks.
Today's historically low interest rates may be feeding banks' profitability, but they are financially starving our seniors.
In February 2006, when Ben Bernanke was first sworn in as chairman of the Federal Reserve, the federal-funds target rate stood at 4.5%. That same year, the average yield on a one-year certificate of deposit was 5.4%. A retiree who diligently saved for a lifetime and had amassed a nest egg of $100,000 could count on an added $5,400 in retirement income per year. That may not sound like much to the average Wall Street Journal subscriber, but for a senior on fixed incomes that extra money improved the quality of his life.
Today's average rate for an identical one-year CD is roughly 1.3%. On the same nest egg, that retiree will now get annual payout of just $1,300—a 76% decline in four years.
via online.wsj.com
ルイヴィトン google.co.jpCoach トート バッグ
Posted by: PAUL SMITH 帽子?キャップ | 11/29/2013 at 06:04 AM