Cash is king once again!
Saving money for an upcoming major event, down payment on a home or car, college, emergency fund, or a cash position in your portfolio to reduce volatility?
You may be leaving money on the table.
Many large legacy banks (Wells Fargo, Chase, Truist, PNC, Bank of America, etc.) are only slowly raising their savings account interest rates they pay to their depositors (anyone with checking/savings accounts), despite the Federal Reserve increasing rates to 4.25% – 4.50%. Most are not even paying 1% interest to depositors. This is because the banks have more money (deposits) than they can lend productively. They are flushed with cash and have little reason to lend it due to slowing economic activity. They don’t need more from depositors. Therefore, legacy banks have been slow to raise savings account interest rates.
However, there are many other savings options out there other than just staying with a legacy bank while saving up for major purchase goals. This economy has seen interest rates rise at a historical rate. There are ways to take advantage of these rates. One way is to look into Treasury Bills, money market funds, and growing banking institutions who need deposits. Some are currently yielding impressive 4% interest rates.
Always make sure your money is working for you, not against you. Be proactive and find ways to maximize the dollars in your pocket. If you are unsure if you are maximizing your cash and investment opportunities, reach out to Graham Wealth Management. We will happily look over your accounts and find you some extra money in the “couch cushions” of banking.
Always consult a financial professional before acting to determine if a move is right for you.
Let us help you prepare to build a secure financial future for you and your family or your business’s employees. Feel free to reach out if you have any questions and we’ll get right back to you. At Graham Wealth Management, each and every client is our priority.
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