Well the bank is already hitting the interest rates on my savings account. Money that I need going down the tubes. People that try to be responsible always get the shaft in this world. People that borrow, default and go bankrupt get the high end of the deal. And here comes another hit on the crack pipe.
“Well the bank is already hitting the interest rates on my savings account.”
A few years ago MMFs were paying .5% interest on my savings. I thought, this is ridiculous and looked around a bit. 3 month T-Bills were paying 1.8%. And, no state income tax on T-Bill in my state. I thought, “That’s better than triple the return not even counting the tax savings, wake up!” I rode them up to 5.55%, the banks stayed behind the entire way. Same thing about to happen again, and I’m still riding them. I also have some 6m, and a few longer Bonds out to 3 years. 3 month paying 3.71% today. Easy no-risk money is good money for the safe part of our portfolios. Good luck and rock on!
Well the bank is already hitting the interest rates on my savings account.
T-Bills beating bank rates and no state income tax on them in my state, don’t know if that’s the case everywhere. During the last low-interest period, T-Bills whacked MMFs big time. The banks got down to .5%, T-Bills were at 1.8%. Any port in a storm. 8% dividend looks pretty good now (Energy Transfer [ET]).