Articles
Selected category: Savings
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 →
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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 →
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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 →
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 →
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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 →
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 →
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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 →
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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 →
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The Fed Funds Rate is Unchanged at 2.25 to 2.50%; Savings And CD Rates Likely to Firm
The Federal Reserve concluded its 2-day June meeting leaving the Fed Funds rate unchanged. As it tries to remain independent of an unrestrained Executive branch that is compaigning for sharp cuts, it removed the word... Read →
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June 2019 Savings And CD Update – How Can You Protect Your Interest Rate on Cash?
We pointed out in our May and April updates, that the Fed may be on hold for a while. We also suggested that May could be a good time to sell and go away. As we enter June, it looks more and more likely that the economy is heading for... Read →
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Absolutely Impossible to Predict the Direction of Short-Term Interest Rates Now
The two most common questions that we get at BestCashCow are “which direction are interest rates going?” and “how do I position myself now if the Fed raises or lowers?” The answer to the first question drives the... Read →
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Uber and Lyft Are At Least 7x to 10x Overvalued
I am watching Bloomberg and CNBC this morning as Uber prepares to come public. The discussion among analysts is on whether Uber and Lyft should be trading at 4 times sales or 6 times sales. Lyft is a pure play US taxi service. Uber is... Read →
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May 2019 Update – The Fed May Be On Hold for a While
The Federal Reserve concluded its 2 days meeting yesterday and acted unanimously to hold the Fed Funds target rate to 2.25% to 2.50%. Guidance continues to be for no more rate changes in 2019, as the Fed previously indicated in its March... Read →
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