Poll: With significant interest rate cuts recently, what are your plans for emergency funds or other savings?
With a 1.25% drop in the Federal funds rate in just over a week, this signals bad news for the cash in your savings accounts. Whether it be high-yield online savings or more traditional bank and money market accounts, you will be seeing lower rates. We have been spoiled with nice rates on cash for a couple of years, but the tide is turning. As long as the economy is struggling, we may even see further rate cuts.
The real problem is that while interest rates are going down, inflation is still a major concern. Many savings accounts will now hardly be able to keep up with inflation, or possibly return less. This can have significant implications on your cash reserves. So, what changes do you see yourself making with your cash given the circumstances?
Don't Miss: Scottrade Review - $7 Trades and Get 3 Free Credit Scores and Hot Credit Card Deals
Filed Under: Polls
About the Author: Jeremy Vohwinkle is a Chartered Retirement Planning Counselor® and spent a few years working as a financial planner. Today, he helps people make the most of their money by writing about personal finance here and elsewhere on the web. Jeremy is also Coach at Adaptu and a regular contributor for other publications such as Intuit, and American Express. Be sure to follow Jeremy on Twitter or Google+.