Sailesh's blog

I have finally decided to join the blogsphere and publish my thoughts to the world.. Lets see if anyone is listening..

Sunday, April 02, 2006

Interest rates!!

It just dawned on me that I am losing money!!! WTF!!! I am not doing anything with my money...well, thats the problem. My credit union offers a paltry 0.5% interest. Given that inflation is > 3 %, I am losing money by just letting it sit there. Their asset management account (read money market) is only slightly better at 0.75 %.

So I looked around and found that paypal is offering 4.45% annual yield. I am going to give that a shot and see if I can keep ahead of the inflation curve. But I just can believe how bad these banks are when they earn >4% interest when they loan to each other but give us poor souls a measly 50 percentage points...especially a credit union which is supposed to be not for profit..