Articles
Selected category: Savings
Compound Interest
What is Compound Interest? Albert Einstein, well known for being smarter than the average, once called compound interest "the greatest mathematical discovery of all time". However it’s not totally necessary to be as... Read →
Image Delicate Arch, Courtesy NPS.org
December 2019 Savings and CD Account Update – Cash Is Safe
I began BestCashCow’s November newsletter by saying that it was hard to get excited about cash. It is still hard to get excited about cash with the Fed Funds target remaining at a range of 1.50% to 1.75%. But, in the last month,... Read →
November 2019 Update – Getting Harder and Harder to Get Excited About Cash
The Federal Reserve lowered the Fed Funds target to 1.50% to 1.75% on October 31, marking its third rate cut this year and causing many of the most recognized online banks to lower their savings’ offers below 2%. The paradox is... Read →
Image Courtesy: Investopedia
The Federal Reserve Lowers The Fed Funds Rate to A 1.50% to 1.75% Target
The Federal Reserve moved to lower the Fed Funds target rate today by 25 basis points to a range of 1.50% to 1.75%. This move marks the third rate cut this year. The Federal Reserve has now "reversed" three of its four hikes... Read →
October 2019 Update - Hard to Get Excited About CDs and Even Harder to Get Excited About Savings
This time last year, everyone was getting very excited about savings rates moving well above 2%, about 1-year CDs at 2.85% and above, and 5-year CDs at 3.50%. Those with cash were finally finding risk-free opportunities for their savings... Read →
Image Courtesy: Wikipedia
Trump Is Preparing to Fire Jay Powell and Replace Him with Jim Cramer
Trump tweeted at 8:22 AM this morning: "I agree with @jimcramer, the Fed should lower rates. They were WAY too early to raise, and Way too late to cut - and big dose quantitative tightening didn’t exactly help either. Where... Read →
The Federal Reserve Lowers The Fed Funds Rate by 25 bps to a 1.75% to 2.00% Target
The Federal Reserve acted today to lower the target Fed Funds rate by a quarter point. This follows the July 31 quarter point reduction of the rate. The Fed Funds rate had stood at a post-crisis high of 2.25% to 2.50% earlier this year,... Read →
Image Courtesy: Pexels
Hot Money - A Defense
A well-known online bank recently dropped its savings rate by 15 basis points, and that action prompted me to close my account there and move the entire balance into a one-year CD at another bank. When the bank’s manager called to... Read →
Steer Far Away from Long Bonds and Preferred Stock Right Now (and from Anyone Pushing These Securities)
A good friend of mine in money management who I ordinarily think very highly of told me this weekend that he likes the 15-year US Treasury bond. I’ve also seen this same endorsement of the longer term US Treasuries from money... Read →
September 2019 Savings and CD Update – Where to Find Safety
It is the end of the summer and Labor Day is upon us. It is a nice time of the year. Unfortunately, conservative savers this year are faced with a dilemma of declining savings rates ahead of a Federal Reserve meeting in September where... Read →
Fitness Bank is Offering 3% to Depositors Who Can Record 12,500 Steps a Day
Fitness Bank is a new subsidiary of Georgia-based Affinity Bank and has unveiled a savings offer that will be interesting to some. The bank aims to encourage a healthier lifestyle and therefore will reward savings customers based on... Read →
Image Courtesy: Pexels
August 2019 Savings and CD Update – Drawing a Line in the Sand
It is August and that means that you should be at the beach. While you are there, we suggest you draw a line in the sand. Last week, the Federal Reserve moved to lower the Fed Funds rate to a range of 2.00% to 2.25%. In... Read →
Image Courtesy: The Wall Street Journal
What is Jerome Powell Really Afraid Of?
Jerome Powell has been testifying in front of Congress for the last two days. You have no doubt heard snippets of his testimony on the evening news or in the financial media. Of note, if Trump calls him to fire him, he will say... Read →
Image Courtesy: Yellowstone-net
July 2019 Savings and CD Update – Interest Rates Are Falling; How To Continue to Earn A Decent Return on Cash
We have experienced a dramatic fall in interest rates in the US and following the Fed’s most recent meeting in June, CD rates greater than 1-year have come in dramatically. Most recently one-year CD rates and even some online... Read →
Image NPS.gov
