Friday, February 3, 2012

USA's Lousy Interest on Savings

Over here in OZ, so many retirees and folks with savings are whinging about the low interest returns on their savings. If you think the average interest rates on savings ranging between 5.5%-6.2% in OZ is low, just wait till you have a gander at the money market rates in the US of A:


If you were a retiree in the land down under and you had a million bucks in your retirement account, at 5.5% simple interest paid annually (to be on the conservative side here), you'd earn $55k in interest income.

Say you decided to renounce your Australian residency and retired in the US of A as an American. With 0.99% yield on your one million bucks savings, you'd earn $9.9k in interest income only. That's $45.1k less!! Which side of the world do you want to retire in now?

Wouldn't that make you want to weep? If you're Aussie and you've been whinging about the interest yield on your savings, save your pity and realise that you've got it fairly good.



3 comments:

  1. I recognized that list from my blog. Thanks for reading PFStock!

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  2. I have you on my google rss feed reader =)

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  3. Wow, those US interest rates are really low… But having savings still beats nothing, so let us all still put away money for the rainy days.

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