Bank interest rates...going up? - six month cd rates
For people who know a lot about business and finance:
I live in San Diego, CA. It seems interesting to observe that in the past six months, the higher interest rate of the bank or credit union interest rate of 2.69 on a CD. Today it is 2.10 for 6 months. Is it possible to predict whether these interests are not shared, because I do not want to invest my money and suddenly interest rates could rise by 5%. Please advice. Thank you very much
Thursday, December 31, 2009
Six Month Cd Rates Bank Interest Rates...going Up?
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2 comments:
The Federal Reserve is flooding the country with money. They took their borrowers and savers lost heart flushed down the toilet. If you want to put their money in CDs hold only a short period of 6 months to 1 years. If inflation rears its ugly head, as have about one year to two years, CDs have been through and you can reinvest in the 18% to 25% of the fees it is dominant. I can not remember the last CD from 1980, when he sets them.
Your concerns are on two different mechanisms.
First, the current decline are to be held all those who have money that could leave the stock market. Note that (pun intended) Fair value essentially false figures (Multiplication times has the final sale price by the number of outstanding shares done and the society a little better or worse gained in the course of business, some companies have lost or billion in value every day). But the hope that their cash Postions noblest materials came home with a check for far less than that of your broker in the output. Where does the money go? Some went on bonds (government and industry), but they were not much better.
With all the money to get the banks. Still, he said the poverty in some suspicious mortgage value and the government was still dumped more money, more than he in the banks.
Well, if the bank more money than it takes the form of loans to be more willing to save money by paying a higher rate? Theand it is not.
In the short term, the banks pay depositors falling prices.
Ultimately, too, that the federal government more money is dumped into the banks, that really is (not with paper and ink when printing the trouble) more money in those days. Finally, the fact will sink in that it assumes a greater quantity of money in this economy, which is used for productive use, this money. That means inflation. If the bank pays only $ 2 to $ 100 now use money they can use to wind up paying $ 5 to their $ 100 in the future, since his is one hundred only $ 20 and $ 5, you pay only the cheapest wine.
For the next 6 months will not be affected if you take the price of CDs, as it is now. Besides, if it falls below 1%, as what will happen a few years ago you are a genius like that.
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