Sorry I didn't make it this week; I had another meeting.
regular total is $15,632.83; party total is $230.58
It hurts me to see that number stay the same from month to month. Note
that even a savings account that paid one-tenth of one percent would net
us $1.50/month (which to me is more than rounding error), and we can do
much better.
I move we moved our money to Keypoint Credit Union and opened a
JumpStart Savings account, with the following interest rate schedule:
Tier Rate Percent Yield Range
--- ---- -------------------
Up to $2,000 1.00% 1.00%
$2,001 to $5,000 0.50% 1% - 0.7%
$5,001 to $10,000 0.25% 0.7% - 0.48%
$10,001 to $50,000 0.25% 0.48% - 0.3%
At approx. 0.4 %, we would net over $5/month on the entire sum. Even we
only moved $2000, the one percent yield on that would net us $1.67/month
or $20/year - better than a poke in the eye with a sharp stick for money
that would otherwise sit around doing nothing, and we'd have the rest to
do with as we pleased (like to invest in companies/sectors we
considered socially/technically responsible/progressive. If we really
have nothing better to do with it and don't want to mess with it, just
move it all and let it sit and accrue interest and don't worry about it.
FWIW, I have been a customer of Keypoint since long before it was
Keypoint - back in 1981, when it was the AEA Credit Union - and they
have always treated me right. If you don't want to do the work of
moving the funds, I'll do it. I think it's important, so I'll fight for
it. If this is a matter that is to be handled other than at a regular
BASFA meeting, and/or if there are any preparations I should make before
decisions can be reached (like filling out non-profit papers or
something), please let me know.
BTW: IIUC, at last count a 1-year CD at Keypoint paid 0.5%, and a
2-year CD paid 0.75% - all of these are much more than rounding error.
It's worth moving it ASAP if you think it might go down further; a CD
would lock it in for a while.
Thanks!
Live long and prosper - Kennita
On 10/15/20 9:42 AM, David Wallace via Basfa wrote:
Interest rates are ridiculously low right now, and are likely to stay
that way for the near future, at least as long as the economy stays
depressed due to Covid. I'm the treasurer of my homeowner's
association and have been working with a brokerage to get better
interest rates for our reserve account, which is fairly substantial.
Best bank CD rates right now that I've found are around 0.1%-0.15% for
the 9 month-1 year time frame. So I suspect that any interest that
BASFA is likely to get right now will basically amount to a rounding
error.
Dave W.
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