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March 24, 2010 – Comments (4)

Cash is the Rodney Dangerfield of asset classes right now -- with tiny yields, it just gets no respect.

My latest article for the Fool is a quick, non-exhaustive look at cash accounts, money market funds and a few ETFs.  The returns range from less than zip to not-much-better.  Before researching, I never would have guessed that SallieMae offered savings accounts. 

Feel free to weigh in with better options I may have missed with a comment here or at the article.

Fool On!

Russ

4 Comments – Post Your Own

#1) On March 24, 2010 at 8:15 PM, Option1307 (30.18) wrote:

I park my cash with FNBO which is a subsidy of First National of Nebraska (FINN), reletively good yielding online savings account. Currently 1.25% which is at the high end of your list, but still pitiful. I've never had a issue over the 7/8 yrs. I've had an account with them so I'd recommend them.

More importantly, they aren't one of the giant crappy good-for-nothing ugly super banks and they didn't receive any TARP assitance to my knowledge. I refuse to give my money to those "other" institutions out of principle. I unfortunately still have my credit card with Wamu, now Chase, (ugh) but I have no balance and pay it off in full every month. Ha, screw you Chase, no fees from me!

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#2) On March 24, 2010 at 8:20 PM, truthisntstupid (93.15) wrote:

Wow, rd, that's pretty bad.  And people think Varchild is way off-base when he says everybody is putting their money in dividend stocks instead?  If  "everybody"  includes people like me, he's right. 

!6 years ago, before a vicious divorce and child support forced me to drop out of college with a little over a semester to go for my BA in accounting, interest rates were something like 5% on a regular savings account.  Back then, when I learned about how to do time-value-of-money calculations and amortize interest, I didn't think about stocks for income.  I was interested in them, but I played with my BA-11 a lot and figured things like if I saved up $5000 and put it in a regular passbook savings account with quarterly compounding @5%, I could take out $75 a quarter for 25 years and still have $2500 left - effectively doubling my money.  I thought this knowledge would be the cornerstone of my retirement. 

Guess they've wrecked that... huh?

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#3) On March 25, 2010 at 3:38 PM, Griffin416 (99.97) wrote:

Bond funds or preferred stock ETF's are a million times better than CD's. If you are willing to have some fluctuation in value then something like PFF is good or LQD. Even though they moved a lot a year ago, these etf's should be relatively stable for quite some time unless armagedon occurs again. They give off a yield of 6-9% and the value should fluctuate +or- 5%

If you need super duper safety, put your money in ING, they give the best yield hands down.

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#4) On March 25, 2010 at 3:58 PM, catoismymotor (< 20) wrote:

Under normal financial conditions I would suggest CEF. I believe if you park the money with CEF for five years it will give you a 10%-15% annual return. There is an extra element of the unknown with the exact direction precious metals will take in the current financial climate so DD is needed, as always.

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