Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
floating-rate demand notes
Old 07-17-2012, 07:21 AM   #1
Dryer sheet aficionado
 
Join Date: Aug 2007
Posts: 34
floating-rate demand notes

His anyone used these? See article
Duke, GE Tempt Savers With Higher Yield Than Money Funds - Bloomberg
I know GE, Duke Energy and Ford credit issue them. They are not FDIC insurerd just wonderring if I spread my money around to all three to diviersify a little to creat a money market fund. Rates are better then what my money market account gets.

Article says it is a much better deal for the company then for the investor.

Any thoughts on them?
__________________

__________________
Paws is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-17-2012, 08:44 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,406
No, but they sound like a reasonable alternative to MM funds albeit with some additional credit risk.

I would prefer TIAA Direct savings account at 1.25% APR and FDIC insured.
__________________

__________________
pb4uski is offline   Reply With Quote
Old 07-17-2012, 08:45 AM   #3
Full time employment: Posting here.
 
Join Date: Jan 2008
Posts: 882
3 issues is not diversification
__________________
jebmke is offline   Reply With Quote
Old 07-17-2012, 09:11 AM   #4
Dryer sheet aficionado
 
Join Date: Aug 2007
Posts: 34
Quote:
Originally Posted by jebmke View Post
3 issues is not diversification
I know that is not real good diversification but it would be a portion of my cash not the majority.

Does anyone know of any other demand notes?
__________________
Paws is offline   Reply With Quote
Old 07-17-2012, 09:12 AM   #5
Dryer sheet aficionado
 
Join Date: Aug 2007
Posts: 34
Quote:
Originally Posted by pb4uski View Post
No, but they sound like a reasonable alternative to MM funds albeit with some additional credit risk.

I would prefer TIAA Direct savings account at 1.25% APR and FDIC insured.
I will have to look into them how is there customer service?
__________________
Paws is offline   Reply With Quote
Old 07-17-2012, 09:16 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,406
Quote:
Originally Posted by Paws View Post
I will have to look into them how is there customer service?
I don't have a TIAA account - they are a recent entry to online banking and I previously had an account with DiscoverBank paying 0.8% and haven't bothered to switch. Many believe that the 1.25% rate they are currently paying is a bit of a teaser to attract deposits and may be reduced later - only time will tell.

However, I think that generally speaking that TIAA has a reputation for good service. Perhaps others have some direct experience with them.
__________________
pb4uski is offline   Reply With Quote
Old 07-17-2012, 11:15 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
Why not a floating rate mutual fund or ETF? Fidelity and TRP each have one. Not sure if they hold the same stuff you're looking at. And they looked a little volitile for a step up from cash.
__________________
Animorph is offline   Reply With Quote
Old 07-17-2012, 11:43 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Run Away!!!
Attached Images
File Type: jpg Sir_robin_part_3_pic.jpg (43.1 KB, 2 views)
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 08:51 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.