7:28 am August 25, 2010, by Henry Unger
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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