Where should the Americans keep money now after the Federal Reserve low interest rates? The answer is much simpler than you think

In September, the Federal Reserve Open Market Committee submitted a discount on the average federal funds. The standard interest rate is now 4 % -4.25 %. The Council also pointed to more price cuts, and the market is now expected to decrease to 3.25 % -3.50 % by 2026, according to Morningstar. (1)

Simply put, we have entered a dilution course that should benefit borrowers throughout the country. But if you are privileged or lend, these price cuts distinguish the end of an exceptionally profitable era. If you are retired or someone who lives outside the negative income, it may be easy to generate high returns.

However, the simple fact is that you must keep the money in the same places that you should keep before. You should always keep your emergency box and other savings you want to easily access in safe, low and liquid assets. The money you will not need in the short term can go to long -term investments that earn higher returns, such as stocks.

If you have not improved your savings based on your needs, there is a wealth of options that exceed the simple savings accounts that deserve to be investigated at higher rates.

As of October 2, it is still possible to obtain a 5 % return on A. High -yield savings account In some online banks such as Adelfi and VARO. This is an attractive return for any money that you need to stop temporarily, but the rate may decrease if the federal reserve continues to reduce prices.

If you are looking for attractive interest rates for your cash savings, here are some other assets that you must consider.

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Unlike the traditional savings account, a CD CD (CD) It is designed to freeze the price you can earn as long as you are also ready to freeze your money.

As of October 2, the highest rate of the available CD is 4.45 % of Lindingclub. This is for eight months, which means that you can ride some price cuts while getting a healthy return on your money.

You can also lock a similar rate for much longer. The highest rates of CDs for one year and 2 years are slightly more than 4 %. If you expect aggressive prices in the next two years and want to maintain your purchase strength, this may be an ideal choice.

The purchase of the Treasury is simply like to lend money to the US government at market prices today and restore your money with interest. They are supported by faith and full credit of the United States government, which makes them very safe.

Treasury bills or T-Bells are government securities that ripen anywhere from four weeks to a year. One of the main benefits here is that you do not have to pay state or local taxes on interest.

The current return on T-BILLs is about 4 %.

If you are looking for a place to temporarily stop cash, the money market box may be a good option. These are mutual boxes that publish your money through a group of short -term bonds, from treasury bills to municipal bonds and commercial paper.

The Vanguard Federal Money Market (VMFXX) box is a common choice and offers SEC’s return by 4.07 % for 7 days as of October 2. To clarify this, this is a variable rate, so if interest rates decrease in the short term, your return will also decrease.

But if you are looking for rapid access, high liquidity and low risk, this is a way to gain some return instead of keeping your money to calculate a low benefit.

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Morningstar (1))

This article only provides information and should not be explained as advice. It is provided without guarantee of any kind.