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Emigrant Direct up again, 4.80%
06-22-2006, 01:00 PM
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#1
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Moderator Emeritus
Join Date: Feb 2005
Location: San Diego
Posts: 5,267
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Emigrant Direct up again, 4.80%
So my "Dream" Savings account at EmigrantDirect is up to 4.8%, this is starting to make other investments look a lot less attractive. With Bernake set to raise rates another quarter point, and probably one more after that, we could have Money Markets paying ~5.5% and short term CD's near 7. With the market still not up to it's high 5+ years ago, and not looking to get there anytime soon, will this drive a lot more people into these funds and out of stocks, perpetuating the bear market? 
Still, that Dream account is starting to move from covering my phone bill to my phone and internet bills, I can't complain about that!
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Re: Emigrant Direct up again, 4.80%
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06-22-2006, 01:35 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Posts: 1,719
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Re: Emigrant Direct up again, 4.80%
Not a bad place to park your cash, but if you don't need the money for the next several years (5-10), you're probably better off buying good quality large caps or low-fee large cap mutual funds. Personally, I use an e-Savings account from Citibank for some short term (2 year horizon) money.
__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
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Re: Emigrant Direct up again, 4.80%
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06-22-2006, 01:36 PM
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#3
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Dryer sheet wannabe
Join Date: Oct 2005
Posts: 14
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Re: Emigrant Direct up again, 4.80%
You can get 5.46% for a 6 month CD, FDIC guaranteed at E*Trade bank as well. *
You are right. *rates are finally starting to get attractive for savers.
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Re: Emigrant Direct up again, 4.80%
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06-22-2006, 05:52 PM
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#4
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Re: Emigrant Direct up again, 4.80%
Roughly the same MM rate at vanguard in the Prime MM acct.
and yeah, its starting to look good. Long term cd's close to 7% might be available soon. Makes you question holding those bonds for the near term. Makes you question some equities too...
On the other hand, in a year or two or three when the fed realizes they overshot by a half a point to a point so Ben could prove his virility and they have to start cutting furiously, the MM rates might not look so hot and bonds and equities might have another nice year or two.
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Emigrant Direct up again, 4.80%
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06-22-2006, 07:30 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,450
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Re: Emigrant Direct up again, 4.80%
HSBC (household) savings is also at 4.80%.
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- Hurry! to the cliffs of insanity!
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Re: Emigrant Direct up again, 4.80%
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06-22-2006, 07:32 PM
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#6
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Re: Emigrant Direct up again, 4.80%
 Quote:
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Originally Posted by Cute n Fuzzy Bun'ny
On the other hand, in a year or two or three when the fed realizes they overshot by a half a point to a point so Ben could prove his virility and they have to start cutting furiously, the MM rates might not look so hot and bonds and equities might have another nice year or two.
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We're one year into a five-year CD at 5%. Six-month cancellation penalty. I keep flopping back & forth.
I think I'm gonna get my Pen Fed membership card and watch what rates do for a few more months to see if they'll have a fire sale...
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Re: Emigrant Direct up again, 4.80%
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06-22-2006, 09:00 PM
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#7
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Moderator Emeritus
Join Date: Feb 2005
Location: San Diego
Posts: 5,267
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Re: Emigrant Direct up again, 4.80%
I'm starting to think there is a way to succesfully market time, in certain areas. When we refinanced the house for the last time, we nailed the historic low, and everyone seemed to know it at the time. Maybe the first time the Fed doesn't raise rates I'll look into some long term bonds...
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Re: Emigrant Direct up again, 4.80%
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06-23-2006, 02:05 AM
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#8
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2005
Posts: 6,193
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Re: Emigrant Direct up again, 4.80%
Quote:
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Originally Posted by Laurence
I'm starting to think there is a way to succesfully market time, in certain areas.* When we refinanced the house for the last time, we nailed the historic low, and everyone seemed to know it at the time.* Maybe the first time the Fed doesn't raise rates I'll look into some long term bonds...
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by the first time the fed dosnt raise rates you missed the big capital gains by then.unless the spread is fairly large betwwen intermediate and long term theres no point...long term bonds have to be gotten in at a point say now where you are a little early..you collect interest for 6 months to a year and by the time rates stop rising ,assuming they do ,,then you reap your capital gains while the johnny come latelys jump in after the fact
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Re: Emigrant Direct up again, 4.80%
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06-23-2006, 09:01 AM
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#9
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,723
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Re: Emigrant Direct up again, 4.80%
Quote:
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Originally Posted by Nords
We're one year into a five-year CD at 5%. Six-month cancellation penalty. I keep flopping back & forth.
I think I'm gonna get my Pen Fed membership card and watch what rates do for a few more months to see if they'll have a fire sale...
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I am currently getting 6% APY for 3 years with PenFED. They wre offering 7% not so long ago on 7 year CDs.
SWR
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Re: Emigrant Direct up again, 4.80%
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06-23-2006, 11:17 AM
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#10
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Re: Emigrant Direct up again, 4.80%
Quote:
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Originally Posted by ShokWaveRider
They wre offering 7% not so long ago on 7 year CDs.
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The day after I lock up our cash for seven years at 7% the Fed will raise interest rates to 7.5%...
__________________
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Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.
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Re: Emigrant Direct up again, 4.80%
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06-23-2006, 04:12 PM
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#11
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Recycles dryer sheets
Join Date: Dec 2005
Posts: 388
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Re: Emigrant Direct up again, 4.80%
Nords,
Sounds as if we should start a consulting firm. Our motto: Buy what I don't; sell the same way.
setab
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I told you I'd taunt you a second time.
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Re: Emigrant Direct up again, 4.80%
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06-23-2006, 04:24 PM
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#12
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Re: Emigrant Direct up again, 4.80%
Quote:
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Originally Posted by setab
Sounds as if we should start a consulting firm.* Our motto: Buy what I don't; sell the same way.
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We could have the DOW below 5000 in six weeks!
__________________
*
Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.
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