Are Savings Account and CD Interest Rate Chasers Entrepreneurs?

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I was wondering if CD interest rate chasers are entrepreneurs too? Help me out with some clarification here, but are those who chase the highest interest rates on saving accounts and fixed deposits considered entrepreneurs in the truest sense of the word?

We all work hard to make money, try to live a financially responsible life so we can save and invest. For most of us, money is often a limited resource, and we are constantly looking for ways to make it grow without risking losing it.

Few months back I wrote about earning a higher return on investment in CDs and fixed deposits.  When reflecting back on that post, I was thinking that shifting money around from one investment to another of a higher return is something I have always done.  It has become such a routine habit over time that I don’t even think about it anymore before making moves.

If you think about it, interest rate chasers like me are interested in making more money from our limited resources (our investment capital). Take out the desire to service the customer and make the world a better place by offering a product or service, how is chasing lower interest rates any different from starting a business to make money?

The original definition of an entrepreneur is someone who shifts resources from a lesser optimal avenue to a more optimal avenue to achieve a more optimal output.  Because banks are consistently competing for the best interest rates on saving accounts and CDs, we often tend to shuffle our monies from one institution to another hoping for a better return on investment.

Does that make saving account and CD interest rate chasers entrepreneurs too?  Do you chase higher interest rates?  Do you consider this activity entrepreneurial? Why or why not?

Sunil
Rate Chaser

6 Responses to “Are Savings Account and CD Interest Rate Chasers Entrepreneurs?”

1. Romeo says:

   October 31, 2011 at 5:08 pm

   Hmmm. Technically yes, but it’s nothing that I would gladly boast to people.

   “So, what do you do?”

   “I chase measly low interest rates. Hot isn’t it babe?”

   Why chase pennies when those resources can chase dollars in things such as real estate, precious metals, or online ventures? After all, the entire point of a business should be to make lots of money or help someone. Chasing interest rates does neither.

   Reply
   • Sunil says:

     October 31, 2011 at 5:52 pm

     That’s an interesting perspective Romeo and the question was meant to provoke such a response indeed. This route is ideal for someone looking for a relatively higher risk free return on their money, but then again forex exposure is also a risk.

     Reply
2. Josh Kohlbach says:

   October 31, 2011 at 6:00 pm

   I’m probably on the other side of the fence, I’d say not.

   I think an entrepreneur was first defined something like this: Someone that moves resources from a place of low yield to a place of high yield.

   I’d probably go further and say that definition only applies when it’s not benefiting yourself only.

   Interested to see what others think!

   Reply
   • Sunil says:

     November 4, 2011 at 5:14 pm

     Interesting perspective Josh when taken one step further. Those in favor may justify by saying that one’s deposits helps banks lend to those in need, therefore fulfilling a need. Increased shareholder value is another way a depositor is benefiting someone, no?

     Reply
3. Dr Dean says:

   November 3, 2011 at 8:56 am

   I vote no on interest rate chaser being an entrepreneur. It is something an entrepreneur should do, to maximize their resources, but doesn’t make them an entrepreneur.

   Taking that extra income from finding the best rates, and invest it in a business, that would be an entrepreneur. Interesting post.

   Reply
   • Sunil says:

     November 4, 2011 at 5:15 pm

     Got me thinking Doc. Interesting perspective.

     Reply