Emigrant Direct up again, 4.80%

[laurence]

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!

 

[Jay_Gatsby]

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.

 

[glen12]

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.

 

[cute fuzzy bunny]

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.

 

[maddythebeagle]

HSBC (household) savings is also at 4.80%.

 

[Nords]

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.

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...

 

[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...

 

[mathjak107]

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...

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

 

[ShokWaveRider]

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...

I am currently getting 6% APY for 3 years with PenFED. They wre offering 7% not so long ago on 7 year CDs.

SWR

 

[Nords]

They wre offering 7% not so long ago on 7 year CDs.

The day after I lock up our cash for seven years at 7% the Fed will raise interest rates to 7.5%...

 

[setab]

Nords,

Sounds as if we should start a consulting firm. Our motto: Buy what I don't; sell the same way.

setab

 

[Nords]

Sounds as if we should start a consulting firm.  Our motto: Buy what I don't; sell the same way.

We could have the DOW below 5000 in six weeks!