According to DepositAccounts, the lowest Ally online savings APY dropped in the years following the GFC, when the federal funds rate was 0-0.25%, was 0.84%.atdharris wrote: ↑Thu Sep 24, 2020 1:42 pmPerhaps they are wanting to be more conservative during this economic downturn? I believe it dropped to 0.75% during the GFC and start moving up as the Fed began raising rates. So that pretty much means we're going to be at 0.6% or lower until 2023. Maybe we really do have no choice but to invest in equities.sapphire96 wrote: ↑Thu Sep 24, 2020 1:33 pm Wow, how low can it go? Mediocre environment for savers.
What’s worse is that we can expect this environment for at least a couple of years as the Fed plans to keep its interest rates at 0% for that time.
What does not make sense is that I remember Ally offering almost 1% on their savings account when the Fed interest rates are at zero before they were raising rates a few years ago. Do I dare ask why is it different this time?
So yeah, things are different this time.