Beating the Market by Staying in Cash

By Johns Wu on Jul 20, 2006

With interest rates so high, and the markets so exasperating, many traders are staying in cash.

Bankaholic lists some no-risk, fully liquid, high-yield money market and savings account rates that offer interest rates ranging from 5.25% APY to 6.00% APY. If the market continues to deteriorate, you might even want to think about locking away some of your cash at the current high interest rates in laddered CD accounts.

I personally plan on opening a 5.76% APY 10-month CD account at World Savings Bank this weekend. Also check out Chase's credit card which offers 6% back on gas purchases for 90 days and then 3% thereafter.

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This entry was posted on Thursday, July 20th, 2006 at 4:49 am and is filed under Market News. You can skip to the end and leave a response. Pinging is currently not allowed.

2 Responses to “Beating the Market by Staying in Cash”

By syl on July 28th, 2006 at 10:24 am

Yeah, the high interest savings accounts are really amazing. Recently, the interest pay outs have been really really high.

The CDs are nice also, but I’ve found them to be a bit of a hassle. I put away 1000$ last December in a 12month CD, which has been fine, but now I could really use that money, but it’s locked up. I’ll keep my money in my ING from now on.

By Technicator.NET on July 28th, 2006 at 11:50 pm

If you have long term money to store away, now it’s the time to buy bonds….
If interest rates goes down, bond prices will go up and you will make even more.