Are Low Interest Rates Here To Stay?
If you are looking for the best CD rates you are probably going to be pretty discouraged with what you find. Rates are at their lowest point in years right now and it is hard to make any meaningful money in interest. With the economy in a rut and no sign of anything getting better, all interest rates are likely to stay low for all of 2010.
If you rely on your interest income then you probably are not doing too well right now because the return on your money is not too good, but that is a risk you take when you expecting to get a return on your money. For many people, in this current economy, risk is not something they are willing or wanting to take.
Even the best interest rates, which are around about two percent, are not very high and after doing some figuring of your earnings minus the tax liabilities it can seem like it just is not worth your time. Due to the current economy, right now is the worst time to rely on interest income and they may need to be put on hold until things start to look up.
It is convenient to just do nothing and let your mature CD rollover when the time comes. The thing is that unless you go to a bank in person and talk with them, you won’t likely get the best CD rates available. Being one of the safest options, beside cash, for keeping your money safe right now, many people are keeping their money in CDs. As far as safety is concerned, keeping your money in a CD is a great choice, but there is no need to not try to get the best rate if you can.
It is hard to know what to do with your savings to keep it safe. Bank CD’s and Treasury bills are guaranteed by FDIC insurance which is really the US government and that is about the safest you can get right now. But if safety means very little interest, you are really losing money to inflation. So most people are stuck between the choice of taking risks they might not want to take with stocks or the alternative of earning almost nothing with interest yielding investments.
Please take a look at my site if you are looking for more information about the best MMA rates. You might also be wondering will interest rates go up any time soon?
categories: investing,saving,interest rates
