CD/Money Market Rates?

[ahellers]

Hey everyone,
So I was sitting down doing some financial planning today. I'm currently getting about 4.5% in my money market account, but I was thinking about locking into a CD or something (since I wont need to be touching most of my savings for a while, and the interest rate is fixed), but when I started looking I realized just how bad interest rates really do suck right now. Any one have a fix on a Good CD anyone's currently offering? Any ideas on other options?
I just want some more freaken money!!!!

t

[govnamac]

Just send it to my paypal account. I'll take good care of it for you. PM me for details of where to send.

[ahellers]

Just send it to my paypal account. I'll take good care of it for you. PM me for details of where to send.

hmm... that's strange, when did paypal start offering a high yield savings account option

I hope you can tell im joking
t

[skife]

hmm... that's strange, when did paypal start offering a high yield savings account option

I hope you can tell im joking
t

i think paypal does offer something like that, 4.23% as of right now

https://www.paypal.com/us/cgi-bin/webscr?cmd=_upgrade-interest-marcom&outside=1

[ahellers]

i think paypal does offer something like that, 4.23% as of right now

https://www.paypal.com/us/cgi-bin/we...rcom&outside=1

oh..... well then, i just feel dumb

t

[trevorjk]

oh..... well then, i just feel dumb

t

skife beat me

also, my bank on most money market savings are all based on how much money you have in your account. it goes from 1k to 5k to 25k to 50k and over 100k. the low rate is 3.8 and goes up from there. so i cant help you much

[teufelhunden]

CD rates aren't much higher, maybe 5%. Depending on how long term you're talking, look into some bonds.

[olinar]

Just buy an assortment of drugs then spend the next couple weeks on the streets selling it.

Woulda been my first choice on my quest to be a gangsta...

[ahellers]

Just buy an assortment of drugs then spend the next couple weeks on the streets selling it.

Woulda been my first choice on my quest to be a gangsta...

oh my

t

[neppo1345]

Look into some short term 3-6 mo CD's before the fed drops the interest rates again at the end of january.

[teufelhunden]

Oh, and just to restate the obvious -- pay off any debts you have and can pay off [car, house, credit cards, etc.] before you get concerned about interest on a CD/MM account. Debt rates are almost exclusively higher than savings/investment rates, so in the long run, you will actually save more money by paying off your debts now and not saving than saving now and paying off the debts later.

[ahellers]

Oh, and just to restate the obvious -- pay off any debts you have and can pay off [car, house, credit cards, etc.] before you get concerned about interest on a CD/MM account. Debt rates are almost exclusively higher than savings/investment rates, so in the long run, you will actually save more money by paying off your debts now and not saving than saving now and paying off the debts later.

Im good on debt , all ive got is a few G's on a car payment. but even with the interest rate, it over all intrest wont amount too much. especialy since Ill have more money in savings then i do on the lone, the extra should make up for the higher intrest rate.

t

[teufelhunden]

Im good on debt , all ive got is a few G's on a car payment. but even with the interest rate, it over all intrest wont amount too much. especialy since Ill have more money in savings then i do on the lone, the extra should make up for the higher intrest rate.

t

Even feeling that way, if you were a client of mine, I'd still encourage you to pay it off up front. Barring that, at least pay down some principle during the month [lots of people favor doubling the payment, which (depending on the loan) can triple the amount of principle being paid down; thus meaning in the long run, you will pay less in interest overall. In a big way].

A quick poke around shows the highest CD rates being between 4.65 and 4.85 [except for some very long term (as far as CDs are concerned) issuances, which are around 5-5.25]... nothing phenomenal. If you're comfortable, either a bull or a bear can make money in the market these days. If less comfortable, bonds [especially those from AA or higher rated issuers] are secure and should yield a higher interest. Municipal bonds are a good way to bring in tax-free monies, provided you take proper planning steps.

There are also some high yield savings accounts [5+] which will match the best money market accounts [which are usually at the same banks, at least given my 5 seconds of googling, which leads me to believe they are one and the same at those institutions]. The net net? You can do better than your 4.5% with minimum risk or take some risk and potentially do much better.

http://www.money-rates.com/savings.htm

http://www.bankaholic.com/money-market/

http://cdrates.bankaholic.com/

(Suppose I should disclaim this by telling you that I don't know all of your circumstances and so any advice I give is based upon common circumstances and may or may not represent the best course of action for you. As with anything else, before doing anything major, speak with the appropriate professional.)