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Just read an article on Boston.com about how the current low interest rate environment is helping spenders, but hurting savings (especially retirees who were hoping to use interest income to live on).

http://www.boston.com/business/personalfinance/articles/2010...

According to the article, current national 6 month CD rate is 0.58% compared to over 5% in 2007.

I've done a little research, and the average 6 month CD rate of several online bank is 0.96%. (ING Direct, Everbank, ZionsDirect). Admittedly, this is a self selected list, and these are online accounts, which may not appeal to retirees.

Of course, with both Emigrant Direct and ING having savings rates at 1.2%, locking your money up for an additional 0.18% may not be worth it. On top of that, Emigrant's Dollar Savings Direct is currently yielding 1.50%.

I've done some additional research, and found that Everbank is offering 5 year CD's at 3.45% (although they have an 8.5% early withdrawal penalty).

I've used ING and ZionsDirect in the past. CD's at Zionsdirect are auction based, which may turn off some people (they also had the lowest rate of the three banks).

I've yet to use Everbank, although their world currency CD's have intrigued me for a few years.

Savings bonds are another option - I Bonds are currently yielding about 3.36%, although this amount changes over time with the level of inflation. You're also limited to $5,000 a year in purchases
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No. of Recommendations: 1
My bank pays 1.3% on money market account balances of $10K to $40K, 1.4% if balance is $40K to $75K, and 1.5% is balance is over $75K. I took this year's IRA distribution in January and pulled cash from my brokerage account that I usually 'store' in a money market mutual fund for emergency use. I'll earn the same rate as a 6 month CD at that bank and will have access to the money any time I want. This looks like a good deal for at least this year and probably next year. If money market mutual fund yields recover I can always go back there.
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"the current low interest rate environment is helping spenders, but hurting savings "

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Helping spenders go into debt?

Kinda like a doctor helping a patient to pass away.

Howie52
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