Comments on: Where Are Interest Rates Headed? http://www.mapgirl.net/mfc/2009/06/18/where-are-interest-rates-headed/ Just tidbits about money and finance. Fri, 30 Jul 2010 19:53:06 -0500 http://wordpress.org/?v=2.9.1 hourly 1 By: Ted http://www.mapgirl.net/mfc/2009/06/18/where-are-interest-rates-headed/comment-page-1/#comment-221882 Ted Thu, 18 Jun 2009 20:05:30 +0000 http://www.mapgirl.net/mfc/?p=1458#comment-221882 Bankrate.com has the national 6mo average at 1.461% and the national 1yr average at 1.957%. Say, 500 basis points to make it easier. 500 basis points on $1000 is $5. $5 per $1000 seems like a small opportunity cost to have a chance at a higher rate in 6 months. I would also not want to be spending too long thinking about it for $5 per $1000. :) Bankrate.com has the national 6mo average at 1.461% and the national 1yr average at 1.957%. Say, 500 basis points to make it easier. 500 basis points on $1000 is $5. $5 per $1000 seems like a small opportunity cost to have a chance at a higher rate in 6 months. I would also not want to be spending too long thinking about it for $5 per $1000. :)

]]> By: Brian A http://www.mapgirl.net/mfc/2009/06/18/where-are-interest-rates-headed/comment-page-1/#comment-221866 Brian A Thu, 18 Jun 2009 17:05:19 +0000 http://www.mapgirl.net/mfc/?p=1458#comment-221866 The fed funds rate is ridiculously and historically low so I don't see it going lower. I think the Fed is more concernced over unemployment in the short-term rather than inflation so I don't think rates will rise in this period either. In other words, rates will probably stay the same for the next 6 months. So in this environment (rate staying the same), a 12-month CD will yield slightly more than a 6+6-month will but I don't think you're in a bad situation either way. The fed funds rate is ridiculously and historically low so I don’t see it going lower. I think the Fed is more concernced over unemployment in the short-term rather than inflation so I don’t think rates will rise in this period either. In other words, rates will probably stay the same for the next 6 months.

So in this environment (rate staying the same), a 12-month CD will yield slightly more than a 6+6-month will but I don’t think you’re in a bad situation either way.

]]> By: Beth http://www.mapgirl.net/mfc/2009/06/18/where-are-interest-rates-headed/comment-page-1/#comment-221865 Beth Thu, 18 Jun 2009 16:55:33 +0000 http://www.mapgirl.net/mfc/?p=1458#comment-221865 Ally bank (formerly GMAC) has pretty good rates on 6 and 12 mo CDs. Although they just went down this month from 2.8 to 2.5 (the 12 month). I have my emergency fund in a CD Ladder there. I'd like an ING referral. thanks! Ally bank (formerly GMAC) has pretty good rates on 6 and 12 mo CDs. Although they just went down this month from 2.8 to 2.5 (the 12 month). I have my emergency fund in a CD Ladder there.
I’d like an ING referral. thanks!

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