Economics & Everything elseThe blog about human needs and limited resources

Treasury Bills also referred to as T-Bills are issued by the fed as a way to raise funds on open market. Buying and selling debt is done by the FOMC or the Federal Open Market Committee. During the years the rate of T-Bills have been on the decline because the federal reserve has decided to lower rates in a failed attempt to try and jump start the economy. Unfortunately for savings like ourselves we are hit the hardest because inflation has been on the increase for slight while. Luckily with the price of oil on the decline cost push inflation has been on the decline but rates still haven’t caught up to the point of inflation which is ~4%.

People often complain about the horrible interest that they get at regular brick and mortar bank accounts but they never seem to think about their low balance in their savings account. Regardless of the interest that you earn, you won’t “earn” anything unless you plan to actually have some money in the account. I currently earn 3.25% at FNBO Direct but I have over six thousand dollars in there that let me earn interest. In addition I’m constantly adding money to the account as it comes in, so let this be a lesson to everyone, save. Saving accounts are great, but look for them online and make sure that they are FDIC insured.