Cash
Hi Terry,
Can you share with your readers the best places to hold cash reserves?
Thank you.
Terry Says
Lots of people are asking that! It is going to be very hard to earn ANY interest in the coming months. YOu can check CD rates at Bankrate.com to see who is still offering good rates. Make sure it’s an FDIC insured CD or money market deposit account.
And be very careful about wiring funds to banks just to get a few extra basis points. That’s starting to look “penny wise and pound foolish.”
Treasury bills are now yielding a slightly NEGATIVE rate — we will see what happens at next week’s auction. For now, the world is seeking safety and is willing to pay the banks to hold money!
Remember the mantra of the chicken money investor: I’m not so concerned about the return ON my money, as I am about the return OF my money!
