Financial Samurai - Forums

General Investing => Fixed Income Focused => Topic started by: Sam on January 06, 2019, 04:05:49 PM

Title: Money Market Rates Are Going Up In 2019!
Post by: Sam on January 06, 2019, 04:05:49 PM
On the one hand, rising interest rates are a headwind for risk assets. On the other hand, rising rates are great for savers.

I just got an update from CIT Bank that they have raised their money market account interest rate to 2.45% whoo hoo!

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2.45% is huge b/c the 10-year bond yield is only at 2.65% or so. But you've got to hold onto the 10-year bond yield for 10 years to guarantee your annual 2.65% return.

As someone who is cashed up, looking to buy a new house, this 2.45% is the market solution given I can withdraw freely whenever I find that perfect deal.
Title: Re: Money Market Rates Are Going Up In 2019!
Post by: daposton on January 11, 2019, 03:45:26 AM
I just noticed the 12 month CD rate at Goldman Sachs is up to 2.75.  That's a pretty good rate to start building a ladder.  https://www.marcus.com/us/en/savings

I've been pleased with their online banking platform.