Expect Even Lower CD Rates
Want some insight into why savings, CD rates, and money market rates are low and about to get lower? The FDIC recently ruled banks that are not “well capitalized” will not be allowed to sell fixed investment products for more than 75 basis points (or 0.75%) above the national average. Whatever “well capitalized” means is subject to FDIC’s terms. This effectively puts a cap on the highest rate any bank can offer.
The 4% Rule to Investing
As you probably already know, returns on fixed rate investments are pretty bleak. The Federal Reserve, since last year, has effectively set rates to zero. This made traditionally safe investments (CDs, government bonds, and money market accounts, etc.) limited with their returns. At the time of this writing, the only previously mentioned investments you can find higher than 4% is a 30-year treasury, and I’m not sure that’s a wise bet.
Lending Club Review – How to Become a Bank
Click here for an update of the Lending Club reviewDid you ever wish when applying for a bank loan, that you were the loan officer sitting on the other side of the table? Well now you can with peer-to-peer (P2P) lending services like Lending Club. They offer a higher rate of return (over 9.6%) than many other traditional investments and you have some ability to manage risk. It’s similar in class to bonds, but is more like if you owned a bank and were the loan officer. You determine which loans you want to approve, and which ones to pass on. Sounds interesting? Keep reading for more details.
Learn MoreStay Connected
Sponsors
