Money Market Accounts Now Pay A Competitive Rate
Nowadays, it appears to be totally normal to be in debt. The United States as a country is in more debt than ever and this also translates to individual people thinking it is just fine for themselves too. The mentality that so many individuals have that they need and deserve things straight away even if they do not have the cash to pay for them has caught up with us big time.
For those who are not in debt and actually have cash to put to work, they are wondering to themselves “when will interest rates go up?”. You see, for many who have been smart with their cash, they’re being penalized for all the trouble the U.S. economy is in currently. Low interest rates harm the individuals who were prudent and never borrowed over their heads. In addition, they are bad for anyone who is on a fixed income which is often people like seniors and retirees.
As you age, it’s smart to have increasingly larger amounts of your money in investments which have high liquidity and are safe. This is because the chance of you needing the money for for emergencies and to live on becomes greater. It is important that you’ve got the cash accessible and in order to have that, you’ll only be able to invest in things that pay you interest.
Anyone who want safety in investments that are insured by the government’s FDIC program must count on interest income. The best money market interest rates are very near to an all time low and they are detrimental to those types of individuals. It is unfortunate that these good folks have to stand by and watch the federal government proceed to maintain rates of interest so low. Low interest rates are really just another form of redistributing money from those who have it to those that don’t.