Banks better get on the ball and start offering decent interest rates, or they’re going to end up in the dumpster.
The “Bank Walk” continues. Bank deposits now down 4.1%. This is your sibling, your neighbor, people with money sitting in a bank account, each at their own pace deciding they’re sick of earning 0%. Each day, someone new, moving their money out of 0% and into 4.8% T-Bills.
I brought this up last November – months before SVB and Signature blew up:
Tired of Getting Screwed With 0% Interest By Local Banks? There Is a Solution.
As usual, the public is finally waking up to the obvious about 6 months late. Here is a partial reprint of my article:
There is a way to get a risk-free 4.5% now, if you’re willing to tie your money up for 1, 3, 6, or 12 months at a time. It is essentially a CD (certificate of deposit) and can be laddered the same way.
All you need to do is set up an account to buy T-bills DIRECTLY from the U.S. Government. Go to www.treasurydirect.com and set up an account. It’s free – and you can quickly link your local bank account to your Treasury Direct account.
The yield curve is massively inverted right now – a sign of recession. Six-month and one-year bills are very fat.
Here is a link to current T-bill rates:
Why just last week, I was able to get some 4-month bills at 4.977%
The banks foolishly screwed themselves lending long in the mortgage market at ridiculous 2.5% and 3% rates over the last few years and then not hedging duration risk. Not my problem though. I’ll be ok when it all blows sky high.