Bank Savings Account Interest Rates

[adios]

Out of curiosity what are you all doing about your savings accounts at your bank. My bank is paying 0.2% interest on regular savings accounts. Needless to say not too much of my money goes there. BTW the Fed is certainly going to cut short term rates by another .25%, possibly even a .5% at their next meeting. I wonder what's going to happen to money market funds as I believe they're paying around .5% now. Note that 2 year US treasuries traded at 1.06% yield today, 5 year treasuries traded today at 2.02% yield and so on. Also 2 year municipal bonds rated AAA traded at 0.84% yield! At least the yield is tax free /forums/images/icons/smile.gif . Well if the Fed cuts short term rates by .5% I guess my bank will be paying 0.0001% on savings accounts. I know I don't want to put money in any savings account that pays those kind of interest for savings accounts. The bank gets a free ride on your money. Think a $1,000,000 is a lot of money to retire on? If you put it in a money market account now you'll get a whopping $5,000 a year to live on if you don't want to touch the principal!

[Ray Zee]

check credit unions in your area. they tend to pay high yields out and are federally secure. mine pays about money market rates when the inerest rate is high and way over when its low. last 6 months payout was 3% something.
when rates are this low its time to pay off or down outstanding loans with extra money, or take it and refurbish your house or something.

[andyfox]

Real estate. Though prices are high here (L.A.) now, low interest rates allow investment with correspondingly low monthly mortgage payments.

My daddy always told me my two best friends would be him and money in the bank. He was right about himself, but money in the bank is overrated these days.

[bad beetz]

dude. Paypal offers 1.22% that's not bad for dead money currently earning .50%

paypal in the house.

[Rick Nebiolo]

Andy,

you wrote: "money in the bank is overrated these days

unless you don't have any /forums/images/icons/confused.gif

~ rick

[Zeno]

GE interest plus is a good way to have some cash in an account that also has checking service, wire service and a 2% guaranteed interest rate. I have some bankroll in this account and like it a lot. Perfect for poker players. If GE collapses you are out of money but that is a very slight to no risk. $500 minimum and checks must be for more than $250 but there is no limit to the number. Automatic investment is available also, plus other features. It is not a bad place for short-term nestegg money or an emergency fund, or poker bankroll, etc.

Check it out if you are interested, GE Interest Plus Web Page (http://www.gefn.com/interestplus/?SMSESSION=NO)


The above site has: The Gospel of Zeno stamp of approval and universal truth certificate guarantee.
So it is safe. /forums/images/icons/wink.gif


-Zeno: /forums/images/icons/grin.gif Zen Master and also Master of Zen. /forums/images/icons/grin.gif

[boots]

tom -
you should be able to find accounts which pay around 2%... I currently have a "money market plus" account at Etrade, which pays 2%, and ING advertises a 2.25% SAVINGS account!
-Boots