# Reserve Bank raises interest rates another half a percent



## Bretrick (Aug 21, 2022)

What did my bank give me of that raise? 0.15%
Of the 1.75% raise in interest rates so far this year, my bank has passed on 1%.
If I have a balance of $50,000 the bank will pay me interest of $500 spread over the year.
As usual, I wrote to let then know my concerns and received a reply from them today.

Thank you for your online enquiry.

As a Mutual Bank, we don’t have “shareholders” and we value all our members and balance the needs of both members with deposit accounts and lending when making the decisions to change any interest rates on our products. We work hard to ensure that our products are competitive and provide value for our members and I apologise if you feel this is not the case.

We recognise that P&N have not passed on the full increase and have lodged your feedback with the relevant department.
We are happy to review your accounts and see if there is a better product for you.

Blah de blah de blah.


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## mathjak107 (Aug 22, 2022)

Banks do not need more money for loans right now ..they are flush with unused cash..

with corporation cash hoards at their highest cash levels the demand for loans is low .

so banks don’t have to pay much as they don’t need to attract capital .

i have been buying CDs at fidelity investment and getting 3% on one year stuff and mid twos on 3 months to 9 months


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## HarryHawk (Aug 22, 2022)

I started buying t-bills rather than leave any significant money sitting in the bank. They are paying a bit over 2% for 4 week bills (a bit over 3% for 52 week) .  They are easy and quick to buy and cash at maturity and just as safe or safer than money in the bank.


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## JustDave (Aug 22, 2022)

It doesn't seem like they guy at the bank that wrote that reply is putting all his cards on the table.  It seems like what he is really saying is, "You can't do a thing about it, and we don't care."

I've noticed that my savings account is still paying the same dismal return as it was when interest rates were low.  I've been watching for months to see when it will raise to reflect the current raises by the fed, but it hasn't budged.  I just have this account for a small amount of around $1000 that I want to keep separate so I can keep track of something else.  I can understand that the bank would not want to pay current rates, when it can pay the lower rate.  I can't control this, but I have invested as much as the Fed will let me in IBonds, and I will buy more in January. 

You just do business with a more consumer oriented company.  That's about the only way to deal with this.  The bank apparently doesn't care.  Banks are good for lending money, the  higher the rate the better.  They are not interested in paying you for your money.  They get all the money they need from the Fed.


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## mathjak107 (Aug 22, 2022)

we moved much of our cash out of chase and over to fidelity where i laddered a years worth of cd's paying up to 3%


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## ManjaroKDE (Aug 22, 2022)

mathjak107 said:


> we moved much of our cash out of chase and over to fidelity where i laddered a years worth of cd's paying up to 3%


I figured that the 2%+ I was getting on the CD's I've been buying from Goldman Sachs (Marcus) was being negated by the remaining 6.62% payments I was making on our personal auto.  Made the move last week and paid off the loan balance.


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