Falling Dollars, Falling Savings Rates and Suze Orman

As part of the Save Yourself Ameritrade program with Suze Orman, I get these regular, rather conversational, Suze emails. Mostly, they are reminders to check my savings program statements and to feel good about saving money. Today’s email mentioned a disturbing trend I’ve noticed since September - the wonderfully high online savings accounts rates (between 5-6%) are dropping fast.

As of right now you get still find a few places with rates above 5% (and I am thinking about FNBO Direct in particular). My previously great Emigrant Direct rate of 5.10% fell to 4-something. While I’m wondering if it’s worth my “Duck” time to switch the money over to FNBO, in today’s email from Suze I am warned that rates are probably going to fall even more in the next few months. She advised finding decent CD rates at longish terms (like nine months) to lock in savings.

It’s a real bummer. We are finally growing our savings from zero, and rates are dropping. We are finally stashing money in 401ks and Roth IRAs…while the dollar falls and the stock market limps along. And yes, so far we’ve lost hundreds of our principle in those accounts. All I can do is cross my fingers and hope everyone’s advice to ride out the bad times proves correct.

Bad timing or simply my endless supply of bad karma?

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