Money Market Rates
Terry: What is the average 10 year rate of a money market that was opened with $40,000?
We opened in 2016 and looks like we are only getting 1% thru our local Wintrust branch- Sounds very low.
Love listening to you on WGN and reading your newsletters that I sign up for.
Terry Says
Unless you need immediate access to the money, you should buy U.S. Treasury bills — direct from the government. Read this: https://www.terrysavage.com/t-bills-beat-cds-2/
But that will tie up your money for at least 3 months, however you should get around 3.6% interest.
And your money market deposit account should pay close to that rate.
You can’t “average” a money market fund over 10years — because about 8 years ago rates were close to zero. Rates change daily, based on Treasury rates. What counts is the yield today. Double check and ask your bank why it is lower than 3% if that’s the case. And if it is lower, move your money!
