Were CD rates really 12% in 1984!!!!

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UntilTheNDofTimE

UntilTheNDofTimE

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holy shit. Ive had some liquid cash ive had sitting in a savings account for a little over a year. I have other terms of investments but this was always my emergency fund. Was looking over the rates bank of America offers for risk free cd's and regular cd's and their top CD rate is 0.55%. I remember a couple years ago rates were 4-5%. I was looking at historical rates and in 1984 you could get 6 month CD rates for 12 %!!!!! God how easy would it be to retire at a young age in that time. You could take out loans and invest that money in CD's and still make a 4% profit even if you had no business sense. One with a decent job and credit score could easily get 3-4 personal loans at 8% for 10,000 and make about 6,000 a year in profits. I would be getting my hands on every single credit card i could and take advantage of 0% for 12 months and make 12% return on my money. Not sure if they had those in 84 tho.

thoughts:surprised:
 
cd-historical-average.gif
 
Nothing is as easy as it seems...

I like your motivation, you will be wealthy when you are old...

Sadly, probably divorced as well...

Unless you hide your wealth and fuck within your means...

Good Luck pal...
 
iifold
Nothing is as easy as it seems...

I like your motivation, you will be wealthy when you are old...

Sadly, probably divorced as well...

Unless you hide your wealth and fuck within your means...

Good Luck pal...
Click to expand...

This is free money assuming they weren't giving loans at a ridiculous 16% rate. Even at that, getting a 12% annual yield on your money would be a godsend. obviously there are much higher returning investments but a CD is a guaranteed profit.
 
From 1984 to 2010 lets assume a average return of 7%. A 100k investment would be worth 580,000 over the 26 year period if you never added a dollar to your original investment.

if you added 5,000 a year it would blow up to 948,000
10,000 = 1.345 M...


in todays rates.....

100,000 over 26 years would yield 115k
 
UntilTheNDofTimE
holy shit. Ive had some liquid cash ive had sitting in a savings account for a little over a year. I have other terms of investments but this was always my emergency fund. Was looking over the rates bank of America offers for risk free cd's and regular cd's and their top CD rate is 0.55%. I remember a couple years ago rates were 4-5%. I was looking at historical rates and in 1984 you could get 6 month CD rates for 12 %!!!!! God how easy would it be to retire at a young age in that time. You could take out loans and invest that money in CD's and still make a 4% profit even if you had no business sense. One with a decent job and credit score could easily get 3-4 personal loans at 8% for 10,000 and make about 6,000 a year in profits. I would get getting my hands on every single credit card i could and take advantage of 0% for 12 months and make 12% return on my money. Not sure if they had those in 84 tho.

thoughts:surprised:
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So you think banks were loaning out money at 8% and paying 12% for certificate of deposits? Uhh. Seriously?

You might want to look at the prime interest rate back then.

The Fed increased interest rates in an attempt to lower inflation during the recession in the late 70's and early 80's.
 
MonkeyF0cker
So you think banks were loaning out money at 8% and paying 12% for certificate of deposits? Uhh. Seriously?

You might want to look at the prime interest rate back then.

The Fed increased interest rates in an attempt to lower inflation during the recession in the late 70's and early 80's.
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Thats what i assumed and pointed it out in a earlier post but the same fact is there. 12% interest rates is a great return for a secured investment.

In 1984 interest rates ranged from 10-13%
 
my parents first mortgage was at 15% I believe around 1980

you could not get personal loans or credit cards under 20
 
UntilTheNDofTimE
Thats what i assumed and pointed it out in a earlier post but the same fact is there. 12% interest rates is a great return for a secured investment.
Click to expand...

not when inflation is 12% also
 
durito
my parents first mortgage was at 15% I believe around 1980

you could not get personal loans or credit cards under 20
Click to expand...

Banks were good ole loan sharks back then. :yeahsure:
 
UntilTheNDofTimE
Thats what i assumed and pointed it out in a earlier post but the same fact is there. 12% interest rates is a great return for a secured investment.
Click to expand...

You realize that it was during a recession and that unemployment was hovering around 10%. Right?

There was also a savings and loan crisis with more than 1/4 of savings and loan institutions failing.

So, yeah, if you were lucky enough to have a job, were able to save money through nearly double-digit inflation in the prior decade, and had faith that your money was safe in the failing banking sector, then you certainly could have made a bit of money with 12% interest rates on CD's in 1984.
 
MonkeyF0cker
You realize that it was during a recession and that unemployment was hovering around 10%. Right?

There was also a savings and loan crisis with more than 1/4 of savings and loan institutions failing.

So, yeah, if you were lucky enough to have a job, were able to save money through nearly double-digit inflation in the prior decade, and had faith that your money was safe in the failing banking sector, then you certainly could have made a bit of money with 12% interest rates on CD's in 1984.
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Sounds a lot like the current economy. Thanks for the Info MF.
 
UntilTheNDofTimE
From 1984 to 2010 lets assume a average return of 7%. A 100k investment would be worth 580,000 over the 26 year period if you never added a dollar to your original investment.

if you added 5,000 a year it would blow up to 948,000
10,000 = 1.345 M...


in todays rates.....

100,000 over 26 years would yield 115k
Click to expand...

By the way... I don't think you'll be able to find too many 26 year term CD's either.
 
MonkeyF0cker
By the way... I don't think you'll be able to find too many 26 year term CD's either.
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He would have locked in his rate at 12% and not told anybody else what a great return he was receiving. In other news, if you would have stockpiled gold and oil from 1984 you would be able to retire comfortably.
 
MonkeyF0cker
By the way... I don't think you'll be able to find too many 26 year term CD's either.
Click to expand...
if that was the case i would of said 12% over 26 years. This estimate was assuming a 7% annual return over 26 years. Obviously not a approximate estimate. But im not going to entire the rates for each years interest rate compound it and re-enter for this post. I just estimated a mean between the 12% and 3% over the timeframe.
 
mcbaseball10
He would have locked in his rate at 12% and not told anybody else what a great return he was receiving. In other news, if you would have stockpiled gold and oil from 1984 you would be able to retire comfortably.
Click to expand...
or instead of that 5,000 wedding ring your wife wanted in 2005 you could of made 187k off apple
 
Or you could have just made a $10,000 parlay tonight.

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Piece of cake.
 
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