Fun with Numbers! Have you seen what many financial institutions are paying on checking accounts these days? Consider the chart below, which is from my credit union (which I love, BTW). The basic rate is .05% interest. If you pony up and deposit more than $1,500 into a “Priority II Checking Account,” you can DOUBLE your interest rate to .1%.

Let’s assume you deposited $10,000 into that “Priority II” checking account on Jan 1, 2021. At the end of one year, on December 31, you will have earned TEN DOLLARS. Even worse, if inflation runs at 2% for the year, you will end up with $10,010 that only has the spending power of $9809.80. How long will it take to double your money in that checking account? Using the “Rule of 72s,” the answer is 720 years.