Why Interest Rates Are So Low
No matter how hard you search for the best money market rates, you are not going to find anything very high right now. This is a bad time for someone who lives off a fixed income and relies on interest income for his or her survival. Retired people usually are the first ones you think of in this category, as their only two potential income sources are Social Security and investment income.
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.
Anyone who is unhappy with these low interest rates and is willing to take more risk should look into something called social lending. With social lending, you are lending money to another person rather than a banking institution. There are several online websites that match lenders with people who need the money and are willing to pay a higher rate. There is more risk with this type of loan because the person could default on the loan. However, anyone wanting to find higher interest rates should look into social lending as a possible solution. - 23162
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.
Anyone who is unhappy with these low interest rates and is willing to take more risk should look into something called social lending. With social lending, you are lending money to another person rather than a banking institution. There are several online websites that match lenders with people who need the money and are willing to pay a higher rate. There is more risk with this type of loan because the person could default on the loan. However, anyone wanting to find higher interest rates should look into social lending as a possible solution. - 23162
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posted by X - Men @ 2:05 AM
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