Why did my bank start giving me less interest?

Question

A few months ago, i was getting about 80 cents interest per month from my savings bank account in TD Banknorth. Recently, this 80 cents a month dropped to half, 40 cents a month. Does anyone have an explanation or thought on this?

Much appreciated, thank you.

Answer 1

If you didn't take any money out then it is what the first guy said. The Fed cut rates. Basically it is a way for the government to make you take your money out and spend it.

Answer 2

the bank is not earning as much interest as it was before

sh*t flows downstream

Answer 3

I'm assuming your account still has the same balance that it's had in previous months, right?

Does your statement show anywhere on it what interest rate they are paying you? It seems like the interest rate must have dropped. Do you have old statements, so you can compare what your previous rate was to what they're paying you now? It may be some kind of mistake on their part -- or it may simply be that, with the economy the way it is, they've lowered their interest rates for everyone.

I just checked their Web site, and it says they're paying anywhere from 0.10 to 0.20 percent. If that's what you're getting ... you *do* realize you could be getting a lot more interest on your money, right? For example, an ING Direct savings account on line pays at least 3.0 percent.

Answer 4

Just wondering if you have been living in a box for the last year.

The housing market is down, the bubble burst, oil indexes went sky high inflation is up. Did you notice the price of milk went from 3.00 to 5.25 a gallon?

When the housing market failed, Fannie May and Freddie Mac are in big trouble because they helped give the subprime lenders the loans for unfaithful people to get houses. Indy Mac was taken over by the Fed last Friday because it was 4 billion dollars in debt from bad lending.

Oil and the housing market is why your bank account interest rate is going down.

Answer 5

http://www.bankrate.com/brm/compare_rate... this website allows you to shop around for the best interest rates.  The days of customer loyalty are over because honestly the financial community have had loyalty only to the bottom line for to long

Answer 6

The Federal Reserve reduced rates.

Savings Account rates are tied to one of the Fed Rates.  As the fed starts reducing them, to give the economy a boost, rates on savings accounts also drop.