Low interest is great for Spenders, but not so good for Savers. It doesn’t seem that we will see any significant increase in interest rates. Why do we say this? Let’s look at what is happening in the world and in the United States. Recently, Germany’s 10-year bond hit a negative rate of return. In July the United States’ 10-year treasury hit an all-time low with little prospect of rising. Why is this important? Many financial institutions peg the rates they offer to the 10-year bond.
So what is a Saver to do? Maybe it is time to look at some safe alternatives to keeping your money in the bank. We offer CD alternatives that guarantee a 2.5% rate of return. Or, principle protected accounts that offer the potential to earn up to 4%. To schedule a time to review your alternatives, please call our office.