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, the stock market has spiked higher to unsustainable levels, impeachment has begun, and the President has become completely unbound. It bears stating the obvious again: cash is safe as long as you stay within FDIC or NCUA limits.
And, you can still get over 2% APY in online savings and money market accounts from online banks. And, of course, you may also find high savings and money market rates at banks and credit unions near you. Check local bank savings rates here. Check local credit union savings rates here.
As I stated in November, rates on No Penalty CDs no longer offer a premium over savings rates. However, you should consider these offerings as protection against savings rates that could fall still further in 2020. See No penalty CD rates here.
CD rates have, by and large, come in much too far and much too fast over the last month. You can still get online one-year CD rates at 2.25% APY and you may be able to find local rates that are still higher.
Check local bank-offered CD rates here.
Check local credit union-offered CD rates here.
However, we’d be very careful about going out further than 1-year. That having been said, if you must lock up your money for a longer period, there is no reason to get less than 2.36% APY on an 18-month CD, 2.50% on a 2-year CD or 2.80% on a 5-year CD.
Have a great month. Happy Hannukah and Merry Christmas!
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