Lower interest rates aren't all good, I guess
I read articles about exchange rates and interest rates every day, but in the end it feels like only my loan interest and deposit interest keep fluctuating.
If rates go down, loans might get a little better, but deposit interest will fall again, and home prices will rise again. It just feels like a structure where you lose no matter where you stand.
In the end, I wonder if the answer is to diversify and hold a little bit of everything.
9 answers
Fair, I admit it.
The only people who like lower interest rates are those with debt. People who only have savings just end up losing out.
Well, that's a bit... It's true that when interest rates fall, deposit interest goes down, but if you lump it all together as "you lose no matter where your money is," isn't that too self-deprecating? For people with loans, it's a huge relief. Seems like a difference in perspective.
Same here. I locked in a deposit at 5% last year, but when I renewed this year it was 3.2%... It just feels so deflating lol
It's true that diversification is the answer, but you need money to diversify in the first place ㅠㅠ
This is so true lol. Every time I read articles about interest rates and exchange rates, I wonder why my bank account never changes.
Do you have a source? The idea that home prices always rise when interest rates fall is a bit of an outdated rule. Recently, there have been many stretches where home prices moved sideways even as rates fell. It just feels like a generalization based only on news headlines.
I just keep only six months' worth of emergency funds in deposits, and put the rest little by little into savings accounts and ETFs. It's not exactly optimal, but I sleep well at night. Trying to predict the direction of interest rates just adds stress.
Personally, taking a hard look at my spending structure was more beneficial than fussing over a 0.5% difference in deposit rates.
Oh, I didn't know this... but it's kind of sad