Low Interest Rates Hurt Those With Money
Money market and CD rates are very low right now. No matter how hard you look or where you look, you will not find any rates that will make you very happy. For someone who relies on interest income, this is a very tough time right now. Retired people usually fall into this category as the only two income sources most retirees have are Social Security and interest from their savings.
With CD interest rates and money market interest rates so low, there is really no safe place for retirees to put their money and get a reasonable rate of return. This is why retirees are also having a tough time in this atrocious economy. They don't have to worry about losing a job like many folks do but their income has taken a big hit too.
The best money market interest rates are usually going to be lower than CD rates or government bonds. This is because the money you put in a money market account is not locked up like it is with a CD. Most money market accounts allow you to make periodic withdrawals and you can take all of it out at any time. This means you get a lower interest rate than some other investment vehicle like a CD where you agree to leave the money in for a predetermined length of time.
Money market accounts are often used in conjunction with stock portfolios so that you can buy and sell stock and have the money go in and out of your money market account. No matter how long you search the Internet, you will not find one rate you are happy with. For someone who has some money and wants to invest it safely, you should be prepared to get little in return.
There is something called social lending that will give you a higher rate of return but it does come with some risk. With social lending, you are lending money to another person rather than a banking institution. This is done through the Internet and you might be able to get a rate of return of 6% or higher. In exchange for this higher rate you will be exposed to more risk as the person you loan your money to could default on the loan. Even with the risk, if you absolutely need to find a place where you can get a higher interest rate, this type of social lending is worth looking into. - 23200
With CD interest rates and money market interest rates so low, there is really no safe place for retirees to put their money and get a reasonable rate of return. This is why retirees are also having a tough time in this atrocious economy. They don't have to worry about losing a job like many folks do but their income has taken a big hit too.
The best money market interest rates are usually going to be lower than CD rates or government bonds. This is because the money you put in a money market account is not locked up like it is with a CD. Most money market accounts allow you to make periodic withdrawals and you can take all of it out at any time. This means you get a lower interest rate than some other investment vehicle like a CD where you agree to leave the money in for a predetermined length of time.
Money market accounts are often used in conjunction with stock portfolios so that you can buy and sell stock and have the money go in and out of your money market account. No matter how long you search the Internet, you will not find one rate you are happy with. For someone who has some money and wants to invest it safely, you should be prepared to get little in return.
There is something called social lending that will give you a higher rate of return but it does come with some risk. With social lending, you are lending money to another person rather than a banking institution. This is done through the Internet and you might be able to get a rate of return of 6% or higher. In exchange for this higher rate you will be exposed to more risk as the person you loan your money to could default on the loan. Even with the risk, if you absolutely need to find a place where you can get a higher interest rate, this type of social lending is worth looking into. - 23200
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posted by X - Men @ 5:49 AM
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