Historically low interest rates have dealt a blow to bank investors up and down the demographic line, but one age group has really taken it on the chin during the Great Recession — and that’s older bank investors.
It’s no secret that seniors rely on interest income to pay the bills. With rates so anemic — Charles Schwab (Stock Quote: SCHW) points out that many senior citizens are earning one-quarter of what they would have earned on the same interest bank investments only five years ago — seniors are really suffering from the bank interest recession.
According to figures released by Charles Schwab himself, and published in The Wall Street Journal last week, a retiree who had socked away $100,000 in savings could earn an extra $5,400 on a one-year CD back in 2006 (with a rate of 5.4%).
With one-year CD rates hovering lower (at 1.3%), that same retiree would only accumulate an extra $1,300 per year.
So if anyone could use a big pickup in bank rates, it’s our nation’s seniors.
Let’s start this week with a few decent credit card deals.
The first comes from Pentagon Federal Credit Union — a credit union that Deals of the Week has covered before.
This week, Pentagon Federal is out with a slew of good credit card deals, most notably the PenFed Promise Visa (Stock Quote: V) Card, which features a wickedly low 7.49% APR for the first 36 months.
After that, the APY mirrors the national prime rate, which sits at about 10% right now.
The deal is only good through April 30, so you only have about two weeks until the curtain is pulled down. The good news is that it doesn’t take long to join the credit union and get the deal.
Find out how here.