With the Coronavirus outbreak, it threatens our economy in many ways. Considering that the Federal Reserve has reduced their interest rate for the U.S. by about half a percent, it’s a lot. Additionally, there are many effects for financial products that businesses and banks offer. Plenty of cash management account services have reduced their APY Rates since the pandemic.
If you need another place to keep your money, read below for more information.
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Different Places to Keep Your Money
There are plenty of cash management providers that have solid rates and terms from 1-2%. For example, high-yield savings accounts even offer similar rates to cash management services. However, since a cash management account tends to have frequent rate changes, it’s better to look into different options.
For example, rates on products like a certificate of deposits (CD) hasn’t been affected much ever since the Federal Reserve has dropped rates. This is taken into consideration since a CD Account offers limited abilities for consumers to take money out of their account.
Opening a high-yield interest savings account is a great option since their rates haven’t dropped too much since the Fed rates have decreased. Some great accounts to look into are from: Marcus by Goldman Sachs, Synchrony, and Discover.
Prepare for Rate Cuts
With the ongoing pandemic, it has formed many worries for consumers, businesses, and the government itself. Since the stock market is experiencing horrendous declines for single day percentages, it’s frightening. The coronavirus has taken a big impact with the global supply chains. Plus, when you use a finance term towards something unreliable, it can come with big risks.
Furthermore, the Federal Reserve plans to cut the rates again soon, and it will most likely steer closer to 0. In other words, it will most likely affect interest rates in many ways for several financial products in the market. Having lower interest rates is damaging to people who save.
Conclusion
With the decreasing rates from the Federal Reserve, it’s not a bad idea to consider putting your savings in a different spot for the time being. Additionally, there are several financial services and products that offer great high-yield interest savings accounts to keep your money safe. However, a cash management account isn’t too bad either.
