It’s Happening Again, In Reverse

Back in 2011, I wrote a post about how my savings account with HSBC had reached a point of uselessness.  There was a steady stream of email notifications saying my interest rate had been cut.  I left that account a long time ago and went with Ally Bank.  Ally has been really good to me.

Although it is a symptom of the times, Ally continues to be good to me, sending me frequent emails that my saving interest rate is getting better.  That’s a lot more pleasant than HSBC’s emails, which were, honestly, a product of the times as well.

My old post about HSBC spanned about 3 years, where I’ve only been noticing the more frequent emails from Ally for a couple years now.  Like my old post, I’ll summarize the changes I’ve been notified on.  Enjoy.

4/24/17: …And in the spirit of doing it right, we wanted to let you know that your rate just went up. 1.05% APY

9/7/2017: This just keeps getting better. The rate for our Online Savings Account went up again! 1.20% APY

10/31/17: It’s happening again. The rate on your Ally Bank Online Savings Account went up even more! 1.25% APY

1/23/18: It’s time to celebrate! The rate on your Ally Bank Online Savings Account went up again! 1.35% APY

2/12/18: With this increased rate on your Online Savings Account, it’s a great time to stash more cash.  1.45% APY

4/27/2018: At 20X the national average, your rate gives you greater earning power – so every penny is working harder. 1.50% APY

5/11/18: Now, with another increase on a rate that’s already more than 20x the national average, you won’t just be saving money – you’ll be making it.  1.60% APY

6/15/18: Good things are happening again with your Ally Bank Online Savings Account. The rate just increased so you’re now getting more for your money. 1.65% APY

6/29/18: We’re back with another rate increase for the 6th time this year! Within the last 6 months, the Online Savings Account rate has gone from 1.25% APY to 1.75% APY, which means your money is working even harder.  1.75% APY

8/3/18: It’s only been a little over a month since we raised the rate on your Online Savings Account, and we’re already back at it again with another increase.  1.80% APY

8/31/18: Celebrate our 8th rate increase of the year by maximizing your savings so you can earn more. 1.85% APY

This sounds awesome and all, but if you’ve looked at my HSBC post, you’ll see my savings account there started falling from 3.50% APY.  We still have quite a way to go.  What I have a slight nagging worry about is that the stock market is floating in space with not much support under it.  A lot of the gains are from corporations buying back their own stock to reward executives and stockholders.

So either the companies are taking out loans to do these stock buybacks or they are spending their mountains of cash built up during the recession.  If it’s the former, well, we have rising interest rates.  If it’s the latter, well, that money could have been spent in other ways – just sayin’.

So yeah, the thing I’m worried about is another market crash and recession, but without the extreme efforts taken by the Fed last time with regard to interest rates.  So what we’d have is another episode like the 70’s where home and auto loans were like credit card interest rate levels.  I was too young at the time to be impacted by the “Great Inflation”, but I have read a nice summary of the event.  And they say history just keeps repeating.

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