Money Matters: Honey, They Shrunk the Interest Rates

Honey, They Shrunk the Interest Rates

You have money in the bank earning 3.5%, and it's killing you.

It's not even that the interest rate is so low, it's that it's so . . . embarrassing! You feel -- well, let's face it -- you feel a little like an idiot. After all, 3.5% isn't even 3% after taxes. And with inflation running at whatever it's running at, say 4%, you're actually losing money!

Of course, it was no better a decade ago, in 1982, when banks were paying 12% but tax rates and inflation were higher. You could have been losing money back then too, but...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!