Where’s the best place to put your money?
It’s not easy to decide where to put your money these days?
The interest rates depositors earn from banks are at record lows — and Georgia banks’ rates are lower than most, according to a new study reported by AJC staffer Scott Trubey.
The national average interest rate for all deposits — checking or savings accounts, money markets or CDs — dropped in July to 0.99 percent, according to Market Rates Insight. The average in Georgia was 0.75 percent, MRI said.
It’s the lowest national figure in a decade, Trubey reports.
Meanwhile, the stock market has been retreating lately because of fears of an even weaker economy.
Government bonds are paying very low rates, given the high demand for safety in this perplexing economy.
And while corporate bonds pay higher rates, they also carry more risk.
Because of the tough choices, many consumers are using their spare cash to pay down debt, instead of investing.
The amount consumers owed on their credit cards in this year’s second quarter dropped to the lowest level in more than eight years, as cardholders continued to pay off balances, Associated Press reports.
The average combined debt for bank-issued credit cards — like those with a MasterCard or Visa logo — fell to $4,951 in the three months ended June 30, AP reports. That’s down more than 13 percent from $5,719 in the same period a year ago, according to TransUnion.
The credit reporting agency said it was the first three-month period during which card debt fell below $5,000 since the first quarter of 2002, AP writes.
What are you doing?
Paying down debt? On your credit card or auto or home?
Investing? In what and why?
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58 comments Add your comment
DW
August 25th, 2010
3:20 pm
GOOD call Mike. Even the E-series bonds are paying 1.4%. Far better than any cd thats under 5 years and you have the option to sell it after 1 yr.
Dave Ramsey
August 25th, 2010
3:28 pm
Pay Off Debt…. Don’t borrow…. Pay Cash…. Live like no other so when you are older you can live like no other.
pebblebeach
August 25th, 2010
3:49 pm
Cash out and became a Real Estate Investor…
Camping out on the steps of auctions houses, buying real estate at dirt cheap prices, putting a few $ in renovating, renting out the property and when the market turns, will consider selling…
Cautious Saver
August 25th, 2010
6:49 pm
We paid off our cars and do not carry a credit card balance. We do use a cash back card for gas and food. For savings, we have an account with HSBC that pays 1.1% and is FDIC insured. Not a great rate, but easy access to the funds in the event of an emergency.
picco
August 25th, 2010
9:25 pm
Look, Im just an idiot when it comes to investments. I make about 5k a month and live paycheck to paycheck. I rent at 1200 a month home for my wife and kids and have doctor bills that would probably bankrupt Trump. All kidding aside my brother passed away last year and I was given $100,000. I used 20k to fix some leagal issues, pay off my car and help rebound after I was unemployed. My parents thought it would be smart to invest into some dental real estate thing
i didn’t want to do it because I didn’t trust the investments that they had already done, but I put 35k into it anyway. I guess its supposed to take awhile to start seeing results. I have two kids and I guess what I’m asking is I have 45k left and would really like to put the money into something that will gain well but be safe. I am wanting to save the money for my kids to go to college but also if something happens ( unemployment, emergency etc) I want to be able to get it out without too much of a penalty. Where should I put the money? I can only find Cd’s that are only paying out 1.44% max and as i have said before I am an idiot so any help would be appreciated.
Credit blues
August 25th, 2010
11:08 pm
My credit’s so bad, they won’t even take my cash.
Bond...Corporate Bond
August 25th, 2010
11:53 pm
Hey, hate to be real, but paying off credit cards is not “investing” – its just smart cash management. To your question, after licking my wounds with some profit taking, I traded out my volatile “diversified” mutual stock funds last fall for high quality intermediate and long term bond funds, which have produced a terrific double digit price return in the down interest rate market. I anticipate jumping back to cash to take these profits at year end if and/or when rates ever do rise, and then eventually, I’ll buy back into these bond funds for the long haul at low prices – low volatility and consistent earnings over time beats the roller coaster for my risk appetite.
S
August 28th, 2010
9:16 pm
What is Warren Buffett doing, buying stock of course. He buys when no one else is…