Banking for grown-ups, revisited
It’s actually been 2 and a half years since I wrote this post in which I griped about my bank, the Postbank, offering a silly rewards program to get deals on consumer goods with its basic savings account instead of an interest rate above inflation. 2 and a half years, and I’ve only now gotten off my ass and opened a savings account at ASN Bank (the product I use is ASN Ideaalsparen, which at the time of writing offers 4.75% interest and requires automatic saving so I’ll be following the Pay Yourself First principle of personal finance). I’m still finalizing the paperwork and will be using their one-time offer to move my savings over before Jan. 2009.
I don’t think there’s any excuse for anyone even using a savings product that doesn’t offer a rate above inflation (outside of situations where hyperinflation takes place, but in a financial collapse at that level, you’re probably better off spending your money on canned food and firearms), but if I were to try, I’d argue that back in 2006, I really wasn’t able to save much money anyway. I am now, though, and I’ll be using that opportunity for as long as I manage to remain employed. Even in a recession (and even in one where trust in the banking system is suffering), I’m still better off earning real interest on my money than in letting it rot away slowly.
Tags: adventures in banking, banking for grown-ups, interest, Personal finance, savings account