From Get Rich Slowly – Why Are Interest Rates So Low Right Now? (and Where Should You Put Your Money?)

I’ve been plowing through my e-mail lately in my never-ending quest to reach inbox zero. As a result, I’ve been answering tons of reader questions. And when I can’t answer them (or when I think a colleague can do a better job), I try to refer the question to somebody else. Over the weekend, for example, LP wrote: I’m a college student and have started saving up and setting aside money, and I feel that the time has come to consider a high-yield savings account, a certificate of deposit, or something similar. It would appear to me that in the time that’s passed since you wrote articles on these types of things (and also helpfully comparing some, thank you), the interest rates have dropped from 4-5% on average to 1-2% on average. Why is that? Is it the economy? Should I sign up for interest rates this low, or should I wait and hope that they increase? Though [...]