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Any Suggestions Where To Put Money Now?

Tuesday, November 8, 2011 - 12:46 PM
I'm looking for an account that pays more interest than I can get at the "big" banks.  I don't know if I should lock up these low rates in a CD.  The stock market appears to be bi-polar to me right now, so I don't want to put more money there.  Any suggestions?
2
linmarielinmarie13 posts since
Jul 15, 2010
Rep Points: 44
1. Tuesday, November 8, 2011 - 4:21 PM
As things are now, a shoe box might be as good a place as any. And I'm only half kidding.

As for whether to lock up in a CD, well, Bernanke says the Fed will keep rates down AT LEAST into the middle of 2013 -- so that gives you guidance that rates cannot be expected to rise before that absent something unexpected, and don't plan on any big rise right at that point. Thus, the rates out there now are about the best you can expect for some time to come. 

You are right about the stock market -- it is a roller coaster. Plenty of threat to the downside by the Europe mess, which will continue for at least the next full year. But that is balanced to some degree by US businesses actually being in reasonable positions, with lots of money on hand. But stocks are another world from a bank account as they are not backed by the government insurance, nor are other typical investments.

Outside of banks and credit unions, your principle is at risk. Inn some others that probably are safe, such as TIPS (which I don't really appreciate or understand), your return could be at risk if not your principle. So, one first question for you is whether you are willing to consider any such risk for this money. If not, then you are pretty much looking at a bank or credit union.

For best rates at a bank or credit union, watch this blog of course. And check the CD dropdown menu at the top of the page. One that is consistently at the high side, as noted regularly in this blog, is Alliant Credit Union. You might find a better rate on a CD at any particular time, though, and that rate would be locked in, so whether that bank is consistently high on CDs or not would not be an issue.
4
me1004me1004374 posts since
Jan 16, 2010
Rep Points: 2,603
2. Tuesday, November 8, 2011 - 4:51 PM
Reward Checking, which has a (on the average) higher rate than most CDs and liquidity, is a great place to be... for now.
2
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
3. Wednesday, November 9, 2011 - 12:43 PM
Thanks for the replys.  I do have 3 reward checking accounts & am considering the one at Consumer's Credit Union but have a difficult time getting the required debits in now.  (Does anyone know why Consumer's requires signature vs. pin?)  51hh, I think you know something about doing that, that I don't know.

I have the 5k electronic & 5k paper I bonds.  Ken, thanks for keeping us informed on those. 

I have some dividend yielding stocks but days when the market is down big like today, I'm concerned.

me1004, I think rather than the shoe box, buying non-perishable inelastic demand items will give me the biggest return on my money with the inflation that I am seeing in the stores.

I still don't like the idea of tying money up for 5 years at maybe 2%.

 

 
2
linmarielinmarie13 posts since
Jul 15, 2010
Rep Points: 44
4. Wednesday, November 9, 2011 - 6:34 PM
The requirement of using the signature vs. pin is that the transaction is a credit transaction if you DO NOT use a pin. The Bank/CU makes more money on a credit transaction.

 

If you need a referral for Consumers, let me know.

I PAY A HIGHER BONUS, in addition to the $50.00 that Consumers pays, THAN ANYONE ELSE.

Contact me at:  pdx2iah@aol.com or PM
2
pdxmalepdxmale91 posts since
Jul 11, 2010
Rep Points: 271
5. Thursday, November 10, 2011 - 10:46 AM
As things are now, a shoe box might be as good a place as any. And I'm only half kidding.

As for whether to lock up in a CD, well, Bernanke says the Fed will keep rates down AT LEAST into the middle of 2013 -- so that gives you guidance that rates cannot be expected to rise before that absent something unexpected, and don't plan on any big rise right at that point. Thus, the rates out there now are about the best you can expect for some time to come. 

You are right about the stock market -- it is a roller coaster. Plenty of threat to the downside by the Europe mess, which will continue for at least the next full year. But that is balanced to some degree by US businesses actually being in reasonable positions, with lots of money on hand. But stocks are another world from a bank account as they are not backed by the government insurance, nor are other typical investments.

Outside of banks and credit unions, your principle is at risk. In some others that probably are safe, such as TIPS (which I don't really appreciate or understand), your return could be at risk if not your principle. So, one first question for you is whether you are willing to consider any such risk for this money. If not, then you are pretty much looking at a bank or credit union.

For best rates at a bank or credit union, watch this blog of course. And check the CD dropdown menu at the top of the page. One that is consistently at the high side, as noted regularly in this blog, is Alliant Credit Union. You might find a better rate on a CD at any particular time, though, and that rate would be locked in, so whether that bank is consistently high on CDs or not would not be an issue.
2
me1004me1004374 posts since
Jan 16, 2010
Rep Points: 2,603
6. Thursday, November 10, 2011 - 2:32 PM
Ok, what was the point to repeat your post, Me1004?

Apologize if I missed soemthing...:-)
3
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
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