Savings Account and CD Rates News: April 17

April 17, 2009
By MoneyAisle

Hope everyone's Tax Day wasn't too painful. The news around the Web has been sticking to that theme, with more stories about how to spend a possible refund and other stories about savings.

Some highlights:

Fast Up Front also has some suggestions for how to spend your refund (similar to the Smart Money article we pointed to earlier in the week.)

Five Smart Uses for Your Tax Refund

Set up an emergency fund. Many financial advisors suggest that people set aside a year’s worth of living expenses in a safe, liquid account such as a savings account, CD, or money market account. This is especially important if your current income is lower than usual or inconsistent.

Primerica has some advice on saving for college.

Primerica Presents Four Ways to Help Pay for College

Start Now. No matter how old (or young) children are, it’s a good idea for families to start saving as soon as possible to try to keep up with the rising costs of tuition, room and board. Sock aside money each month in a savings account or consider investing in the stock market to take advantage of dollar‑cost averaging (investing a certain amount consistently over a long period of time) to boost potential returns.

BankingMyWay has an article about the safety of certificates of deposit.

The Promise of Safety With CDs

Another reason CDs are considered safe is because there is a guaranteed return of the principal plus interest when the CD matures. With equity investments, there is no such guarantee of principal preservation, and huge losses of principal are possible, as the market has recently shown. Because the principal is not at risk with certificates of deposit, these investments do not carry high interest rates. Investors trade the security of knowing that they will not lose money for the loss of potentially higher returns in riskier investment vehicles.

  • Featured In:

  • The New York Times: Do I Hear 4%? On This Site, Banks Bid for Your Cash
  • CNN: Auction money for best rates
  • The Wall Street Journal: Want the Best CD Rates? Hold an Auction.
  • AARP Bulletin: Save a Buck: Find Highest Interest Rates Online
  • Safe CDs, checking accounts for investors scared of stocks
  • O: The Oprah Magazine
  • Boston Globe: Website lets banks bid for customers
  • CNBC: Banks Bid for Your Cash
  • MIT Technology Review
  • Money Magazine
  • Reader's Digest
  • FOX Business: Bidding for Your Money

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