Online Savings Accounts - High Rate CD Accounts | Saving Money for Kids » high yield

High Yield Savings Account | Why Bother at Present Rates?

High Return Savings Account — Fri, 25 Sep 2009 12:26:01 +0000

People ask me why open a high yield savings account these days when rates are only 1.35%? In all fairness that is a good question, because there are plenty of higher paying CDs out there – but CDs as we know have their problems too. Making a decision to open a high yield savings account when rates are so despondently low these days doesn’t seem like a good use of spare cash – but there are benefits to doing it. Let’s look at a few reasons. Inflation May Be at Historic Lows Presently I recently saw in my savings bond email that the inflation rate for the inflation adjusted savings bonds I own was actually negative for parts of the last twelve months, indicating that we experienced a period of DE-flation. Deflation was one of the great cataclysms of the Great Depression of the 1930s. Deflation is a price scenario when the price of goods is dropping (think automobiles over the last year) and yet no one is buying. Note that automobile sales didn’t pick up until the government stepped in and started shelling out cash for clunkers to get cars moving. Watch what happens to auto sales once the money [...]

High Yield Savings Account | Why Bother at Present Rates? is a post from: Online Savings Accounts - High Rate CD Accounts | Saving Money for Kids

High Return CD | Where to Put Money in a Low Rate Environment

High Return Savings Account — Wed, 02 Sep 2009 16:07:11 +0000

I was looking for a high return CD the other day. Rates have been ridiculously low thanks to the horrible economy and awful business mismanagement by corporate executives but I still wanted a place to sock away at least some money in an interest bearing account. I honestly hadn’t had a lot of luck finding a high rate CD that was worth the holding period. Then it occurred to me… if I can park my cash in a decent yield liquid account until rates start rising again I won’t have my money caught up and destroyed by inflation. It Just Doesn’t Pay to Have Money Locked Up in a Low Rate Environment Putting your money into a high return CD can be a risky place for your money if the bank you give you money to is in danger of insolvency. Many bank advertisements online these days are trying to attract investors to buy their high return CD products. What I have been noticing in these ads is that at least a few of the higher rate CD offers are coming from banks that are either financially stressed or have already received TARP money. Why does that matter to you? [...]

High Return CD | Where to Put Money in a Low Rate Environment is a post from: Online Savings Accounts - High Rate CD Accounts | Saving Money for Kids