Old Timey ROI

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Just like the old days.

Three years ago I had a conversation with a young bank teller.

I wanted my savings account to do slightly better than 0.01%, and so I opened up a Certificate of Deposit. A “CD”, to use the parlance of our times.

When I was going over the rate sheet, I said to the bright-eyed and bushy-tailed bank employee, “you wouldn’t believe it now, but we used to get 5% all day long on a CD.”

He laughed.

“Yeah I’ve heard that before.”

Well, it was true. In the Before Times – and I mean the REAL Before Times, before the 2008 Great Financial Crisis (or as I heard it so casually put the other day, the “GFC”) – you could walk into any bank and open a CD at 5% return. It was just a known fact, like air containing oxygen. It was a part of life.

Since then, rates have been so low that it has become the new normal.

But that’s not normal.

Now we’re finally back at reasonable reality. It sucks if you’re buying a home, but it’s great if you’re trying to get actually passive income in a CD.

Because now you can get 3-4% all day long on your money, even on a 90 day CD.

The tradeoff is inflation, but thaaaaaat’s a conversation for another day…

P.S. – don’t let your business run you…

Profit Hiker is a program to help business owners discover hidden profit, create margin, avoid financial struggle, and finally feel the freedom of a business that works for you. There are 11 trails to gain lasting elevation in your business, and we have the maps.