Best Places for Your Cash
Interest Bearing Accounts
The FEDs raised rates this past December by 25 basis points, in other words ¼ of a percent. Really haven’t seen that reflected in interest bearing accounts, though banks did raise the amount of interest charged on a variety of loans quickly.
So you may be wondering where is the best places for your cash (liquid assets) right now.
My favorite is still the US Saving Bond series I which is adjusted every six months, the current yield on the I Bond is 1.64 % which will be adjusted beginning May 1, 2016 and again in November. Forget the EE bonds as they pay very little and stay fixed for 30 years, current rate they pay is 0.10 %. For more information on US Savings Bonds visit TreasuryDirect.Gov
The national average Certificate of Deposit in the United States is 1.12 % that banks pay currently.
Savings accounts and money market accounts are hardly worth mentioning, though if you shop around online you can get a better rate than most of the local banks. Search Bankrate.com for the best interest rates anywhere including interest on a variety of loans including mortgages, car and credit card rates.
Also consider your local bank or credit union as they do offer higher rates for savings account amounts under $15,000 to $25,000 and on checking accounts. Make sure you read the fine print, some institutions require that you use a debit card a number of times per month.
As with most financial transactions do shop around compare rates and review those rates at least annually. If you have a brokerage account, check out their various money market funds that they may offer.
Financial Quote of the Week –
It’s OK to have a plan, to invest in your future – for your financial security, your love life, your personal fulfillment, and even your happiness. To have personal happiness as a stated goal doesn’t detract from it if you get there.
Karen Finerman
Daniel F. Iuculano, AAMS CMFC
Accredited Asset Management Specialist
Chartered Mutual Fund Counselor
Follow Us
