Reuters - Video

EDITION: U.S. | U.K. | IN

Investing 201

Why savings interest rates won't budge

Friday, September 13, 2013 - 02:09

The yield on the 10-year U.S. Treasury note is near 3 percent and this might tempt you to pull out of stocks and bonds and put your money into a CD or money market account. But here's what you need to know before you make that move.

▲ Hide Transcript

View Transcript

Interest rates are rising fast. And with the uncertainty ruling over Syria he may be tempted to profit on stocks or bonds and -- that intimacy. Or money market account but wait. You may not get the yield you expect. -- yield on the benchmark ten year treasury has nearly doubled from one point 6% on May want. Just shy of 3% today. Interest rates on one in five years CDs and money market accounts have been flat. Rates for the one your money market actually inched down the reasons. One CDs and money market accounts tracts of federal funds rate which is near 0%. Not the ten year treasury which affects mortgages. Too there's the banking factor. They're not having trouble attracting deposits I mean there's still plenty of people looking for a safe place with their money. They're sitting on seven trillion dollars worth of deposits and savings accounts alone banks have a lot of cash on hand. And they don't really have a needs to pays. He's investors more money to attract more deposits. So where should investors parked their five. Dollar -- step up CD these accounts feature rates that rise along with interest rates at set intervals. That white investors can fight inflation and not be tied a bit longer term commitments also consider iboxx. These savings bonds are indexed to inflation and their government insures them. Finally consider trading your old CD for a new one at a better rate some banks. -- as little as as three months interest. An early withdrawal penalties so. You know that's not going to be a big hits a -- if you can really increased interest -- honesty budget point of money out and getting you know. And consider this how bad -- penalty. When a five year old Eagles out. Three quarters of a percent.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Why savings interest rates won't budge

Friday, September 13, 2013 - 02:09

Top News »

Retirement »

Back to work- in retirement Back to work- in retirement

Wed, Oct 15, 2014 - (2:09)

Money Clip »

Will Apple Pay transform mobile payments? Will Apple Pay transform mobile payments?

Thu, Oct 16, 2014 - (2:45)

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Dance of the northern lights Dance of the northern lights

Mon, Oct 20, 2014 - (1:08)

Images of September Images of September

Wed, Oct 01, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)