Re: Keep cash at home

fishdoggy1 · ‎09-24-2023

I am starting to rethink the idea of keeping some cash for emergency in my safe. When you couldn't even get 1 percent on a 2 year CD I didn't care if it was here or in the bank, and inflation wasn't what it has been of late. I am not able to predict the future but what are your thoughts on this.

Tempest332 · ‎09-25-2023

Back over the past decade you have a point. I recently got into a 5% CD though with the fees these banks are charging would be a deal breaker. I used to go into S&L's & I think most of us remember the 14% CD's from the Regan rears. What they are getting in some interest it's a crime to be paying out small fractions of a percent.

DirkB349973 · ‎09-25-2023

The app on my phone makes it very easy to move money between accounts (accounts at that bank), so I see some safety and convenience in leaving money with the institution even when saving rates are almost zero. Mine also offers CDs at 4-5% so there is the potential to stay ahead of inflation.

TomD857140 · ‎09-25-2023

I agree. The CD interest rate is ridiculous, as is the rate on a credit card balance-18 to 21%.

EricC28201 · ‎09-25-2023

Back in the 20th Century I worked for a company that supplied me with an AmEx company card to use for travel expenses. As a result I got in the habit of reconciling credit card balances every month...even on my personal credit cards.

One of the people I carpooled with at the time was an investment fund manager who had previously worked for a couple of credit card companies. This was the person who informed me that my credit card companies probably hated me (except AmEx) because they were not making money off me.

Bottom line...Doesn't anybody regularly pay their credit card balances in full at the end of the month any more?

...As far as the Cash at Home thing...It has its own risks, but I've never been a big fan of CD's.

fffred · ‎11-10-2023

@EricC28201 wrote:
"...Doesn't anybody regularly pay their credit card balances in full at the end of the month any more?

...As far as the Cash at Home thing...It has its own risks, but I've never been a big fan of CD's."

I have paid my card balances in full every month since around 1984. I used to be a casual user of my cards but for the past near-20 years I use them in preference to cash. I realize that I don't add much to the banks' bottom line. But on the other hand, the banks take a cut of the transaction from the merchant, so they're still happy.

Regarding cash at home, I've seen a number of news articles over the years about people putting their cash in a mattress, etc, that later ends up at the dump and then they have to go digging for it. More than once I've seen this!