We're pleased to announce the BestCashCow Savings Rate Index. The index, which is a composite of the top 10 rates on the BestCashCow Savings Rate Table, helps you track the direction of bank savings rates and compare them to previous periods. We'll be adding additional historical data shortly and updating it weekly.
Last week's Index: 5.52
This week's Index: 5.54
Rates in the Top 10 stayed fairly steady despite the steep rate cut. The slight increase from 5.52 to 5.54 was due to the addition of Zions Bank to the index and not any increase in rates. While several banks cut rates, no bank increased their rate during this timeframe.
It is noteworthy that while the Fed dropped rates by half a percent last week and individual banks have cut rates, overall savings rates have remained steady.
With the big investment banks done reporting this week, one thing has become clear, Goldman Sachs is in a class by itself.Unlike the other banks, Goldman anticipated the credit crunch and put hedging strategies in place that produced the third best quarterly profit in the company’s 138 year history.Amazing.
How did it do it?By seeing the trends and betting against the mortgage market.The company’s mortgage profits actually rose significantly while the company also doubled revenue from equity trading and generated record investment banking fees.
As the chart shows, Goldman suffered along with all of other i-banks during the credit crunch but its stock is bouncing back. Based on these earnings, Goldman should bounce even higher.
It's PE is a bit higher than it's peers:
Goldman 9.68
Bear Stearns: 8.78
Morgan Stanley: 7.28
But how can you bet against a company that seems to have its pulse on the financial market. Short term, the stock may vaccilate but long term I'd put my money with the guys (and girls) who clearly know how to make lots of it - in good and bad.
Based on the decision minutes ago by the Fed to lower the discount rate by half a percent instead of the expected quarter of a percent, rates on short term CDs and savings accounts will most likely drop. The drop may start as early as tomorrow.
Based on the decision minutes ago by the Fed to lower the discount rate by half a percent instead of the expected quarter of a percent, rates on short term CDs and savings accounts will most likely drop. The drop may start as early as tomorrow.
With the Fed dicount rate now at 5.25%, banks have no incentive to lend money out above that rate. A quick glance at the BestCashCow CD Rate Table and BestCashCow Savings Rate Table shows that quite a few banks have CDs and Savings accounts in excess of 5.35% APY.
Consumers who want to be sure they receive these rates may want to lock-in quickly.
