Guests - If You want access to member only forums on HSO. You will gain access only when you sign-in or Sign-Up on HotSpotOutdoors.

It's easy - LOOK UPPER right menu.

Sign in to follow this  
Followers 0
upnorth

Interest Rates?

44 posts in this topic

Anyone have any idea of where interest rates are going to go? I have 2 CDs coming due and the rates stink right now. Are they going up in the near future?

Share this post


Link to post
Share on other sites

I'd guess that the rates aren't going up too soon. Banks can still buy money cheap from the Fed so there's no point in offering high CD rates to customers.

If a bank's CD rates seem much higher than the competition, it may be an indication that the bank has had a big loan default and is looking for cash. I'd be leery if this were the case.

Over the past year I have been moving CDs into bonds.

Share this post


Link to post
Share on other sites

What kind of bonds? US savings bonds?

Share this post


Link to post
Share on other sites

Interest rates on CD's won't be going up any time soon. They are less than 1% right now. The only way you can get a better rate is by locking in for a 24 month CD. Those are paying about 2.5%. But..... 18 months from now could be a very different story. Don't lock into anything long term right now.

Share this post


Link to post
Share on other sites

Thanks guys. My bank is offering 3% but you have to lock in for 39 months, like 1.7$ for 18 months crazy

I have 1 due now and another at the end of the month coming due. The rates just keep dropping and I can't see continuing to do the same thing with such poor returns.

Share this post


Link to post
Share on other sites

You can get 1.5% in an ING Orange Savings account. Their rates for savings accounts are some of the most competitive you will see. They will give you $25 for opening an account.

Share this post


Link to post
Share on other sites

Right now, I would stick with an interest bearing account rather than a CD, or an alternative investment. There is no sense in locking up your capital, when you can get a comparable rate and still have access to your cash.

Share this post


Link to post
Share on other sites

Right now, I would stick with an interest bearing account rather than a CD, or an alternative investment. There is no sense in locking up your capital, when you can get a comparable rate and still have access to your cash.

You can buy TIPS (treasury Inflation Protected Securities) either direct from Government or in mutual fund. They pay interest, plus the principal is indexed to inflation. Prices in the market for TIPS are not forecasting much inflation for the next few years.

Share this post


Link to post
Share on other sites

Right now, I would stick with an interest bearing account rather than a CD, or an alternative investment. There is no sense in locking up your capital, when you can get a comparable rate and still have access to your cash.

Savings account interest rates are close to non existent right now. I have already looked at that. And I really would like to make a few $$$ in coming months.

And I looked at ING as I have them for a 403.b and their rates to length of term are not so good either.

Share this post


Link to post
Share on other sites

I realy don't think you are going to find anything that pays to much at this time. I would love to have the intrest rates my folks were getting on CDs in the late 70 and early 80's

They were in the 18% range.

Share this post


Link to post
Share on other sites

I would be happy with 4 - 5% right now.

Share this post


Link to post
Share on other sites

You pay for higher ING rates. They make you wait a few days to get your money after a withdrawal

Share this post


Link to post
Share on other sites

I know the MMA's/savings/etc rates stink right now, but they aren't much worse than the rate you quoted above. 3% for over a 3 year tie up isn't worth it in my mind, thus keeping it liquid until the market turns around or find alternative investments (bonds, etc...) I don't think you are going to find 4-5% right now on any CD's or interest bearing accounts. If you do, let us know where!

Share this post


Link to post
Share on other sites

Quote:
I don't think you are going to find 4-5% right now on any CD's or interest bearing accounts. If you do, let us know where!

OK...I was fantasizing abit. Can't blame a guy for wanting.

I definetely agree that I don't want my money tied up for 39 months at 3%.

Share this post


Link to post
Share on other sites

You're better off spending your money. Actually, I have a savings acct. with HSBC direct. Their rates have also been dropping, but the latest rate was to 1.65%, where it was a couple days ago. There is no minimum for opening the account. However, 1.65% doesn't amount to a heck of a lot, so I'm going to spend a bunch. It's a lot more fun. grin Besides that, the feds will be after their share of even that meager amount. mad

Share this post


Link to post
Share on other sites

I would love to start spending, but do need a little cushion. Never know when you are gonna a few $$$

Share this post


Link to post
Share on other sites

I had a couple of CD's come due in late Feb. I couldn't see getting 2 to 3% for approx. 3 years, so I bought stocks. There are some really good deals out there right now. GE would be one. Lots of others, but do your homework.

Another thing one might do is use the cash to update the house or vehicle. If you need a roof, windows, furnace, car or something like that there are some incentives that make these purchases a better value than getting the interest rate and still having to pay taxes on the gain.

Share this post


Link to post
Share on other sites

How do you buy the stocks? do you have a broker or do you do it online by yourself?

Share this post


Link to post
Share on other sites

You ever thought of putting that money into a municipal bond?

Share this post


Link to post
Share on other sites

This money is money that I want in something stable, dependable and insured. I don't want to put this in anything with any risk. I have enough in mutual funds and bonds now and have taken a huge beating frown Call me chicken, but this portion is going to be as safe as possible.

Share this post


Link to post
Share on other sites

How do you buy the stocks? do you have a broker or do you do it online by yourself?

I have an Etrade and Schawb account. A good way to get started is to look at buying index funds. That way you live with the whole market and the fees are minimal. The book Investing for Dummies is a good book for some basic information on how markets work. Again, do your homework because there are no guarntees.

Up North makes a good point about being diversified. I still have a cash element in by portfolio, but the market is providing a good opportunity to buy. The reason the market has gained in the last two weeks is because those bargain stocks are being bought. Hopefully the buys will continue.

Share this post


Link to post
Share on other sites

I am putting money into 3 different 403.b account to the tune of $600 per month and my wife probably another $125. Not to mention 3 different IRAs based on Bonds and Mutual funds. Need some money in a safe place.

Share this post


Link to post
Share on other sites

I would probably go with a money market or cash certificate account.

Your money will be safe however it will only earn 1-2%. But a small gain is usually the case when you are looking for something safe.

Having the MMA or CCA you'll know your money is safe during a turbulent time and it will be earning a little for you. You'll also have access to it if you lose a job or need quick cash for something.

As the market turns around you'll also have immediate access to this money to move into other investments that make sense as rates change.

I keep my "safe money" in a cash certificate account, not to long ago it was earning me 4% which isn't bad for a zero risk investment. Although now its earning me closer to 1%. But I still know that my fall back money is safe and sound if I need it. Its nice to know atleast one of my investments isn't taking a daily kick to the gut.

Share this post


Link to post
Share on other sites

I can get a 9 mon cd from my bank at 1.3% and I think that is what I am going to do with most of this cd and put a couple thousand in I series savings bonds.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0



  • Posts

    • The US doesn't have state controlled media at all. Well, didn't have. Now we have Bannon and Breitbart in the White House, and of course at Trump's press conference there was only a single reserved seat: front and center for Breitbart.   As far as psychological manipulation: you are subjected to it daily, but usually for commercial purposes. You can easily go the whole day without seeing anything politics related, but good look avoiding advertising for a day.
    • Worst buy I ever bought. I sold it the next week. I like 13 products but not this line of products
    • jobs and better paying jobs.   that's about it for me.  Sure there are some perks, but I'd give it up in a second if I could come close to matching my income in Grand Rapids. What sort of field are you in?   Anymore it's all indeed, monster, or some sort of online service.  Maybe a recruiter can place you in something, but it might be a sucky job.  I went to a recruiter a few years ago and they could put me a job in a few days, but it was sort of on the edge of my field and the job sucked.  Still, if I was in a pinch, I'd do that in a heartbeat over sacking groceries.   Nobody reads the newspaper and C-list is for sex work and scams.
    • Thanks for the advice, we do know the areas that we like have liked in the past. Cities is a vague reference as most people up here call everywhere down there the cities. We would be looking at the west metro area or nw suburb area.   Job on is the big thing right now ideally my wife could take a few years off to raise our boys as typically the "cities" pay is more than up here.. I have been looking but what is the best way? Indeed? Newspaper? Clist?   We we are a good distance in a way but we are close to our families. When we get company we get them for 3 solid days. Also once we had our twins it was more so they could see there cousins, aunts, uncles, and grandparents more often than 1-2 times a year.
    • The gdp is right around 18 Trillion Dollars.   Ten years of that, including even a little nominal growth is north of $200 Trillion.   So you are talking about 4.5% over ten years.     And that is assuming that these economists are able to forecast accurately.   We had other economists telling us about the "multiplier" where a dollar of government spending increased GDP by way more than a dollar.     I didn't believe them either.   
  • Our Sponsors