DIRS.INFO The most relevant business & tech news

☆ The Fed’s expected rate hike is about to sweeten yields on these investments
▼ + stars: | 2023-07-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The Federal Reserve is widely expected to boost interest rates by another quarter percentage point Wednesday afternoon – and that's terrific news for fixed income investors hoping to grab a little more yield. Since March 2022, the central bank has raised rates 10 times – with July's expected hike marking the 11 th increase – to cool inflation. Consider that during the week of March 11, 2022, the rate on the 2-year Treasury note was 1.75%, according to Refinitiv. Investors who wish to squeeze a little more interest income from their cash holdings have opted for Treasury bills, with the 6-month bill yielding 5.5%. By buying multiple notes of different maturities, investors can "ladder" these Treasurys and reinvest the proceeds from maturing bonds into longer-dated issues.

Persons: Greg McBride, maturities, tradeoffs, McBride, SLM —, Sallie Mae —, Nick Wells Organizations: Federal Reserve, Investors, Treasury, Bank of Locations: Bank of Indiana, Treasurys

☆ 57% of people are uncomfortable with their level of emergency savings. Here's how much they think they need
▼ + stars: | 2023-06-23 | by ( Lorie Konish | ) www.cnbc.com time to read: +1 min

Having ample cash set aside can help prevent an unexpected emergency from turning into a financial catastrophe. But when it comes to emergency savings, more than half of Americans — 57% — are uncomfortable with the level of money they have set aside, according to a new Bankrate survey. Of those respondents, one-third are very uncomfortable, the May online and phone survey of 1,025 respondents found. Meanwhile, 22% have no emergency savings at all, the survey found. The Covid-19 pandemic helped raise awareness about the importance of having cash set aside.

Persons: —, Bankrate, they're, Greg McBride Organizations: Finance

☆ What Is a Jumbo Mortgage, and How Do You Get the Best Rates?
▼ + stars: | 2023-06-21 | by ( Beth Decarbo | ) www.wsj.com time to read: +9 min

What is a jumbo mortgage? Do jumbo loans come with jumbo mortgage rates? Many times, jumbo rates are lower than those for conforming loans, in part because the stringent requirements to qualify for a jumbo loan lessen the risk that borrowers will default. Tips to save on a jumbo loanWith some savvy strategies, house hunters in need of a jumbo mortgage can reduce their costs. Chase, for example, offers the highest jumbo limits (up to $9.5 million), which is one of the reasons it is Buy Side’s pick for best jumbo mortgage lender.

Persons: Beth DeCarbo, Fannie Mae, Freddie Mac won’t, Greg McBride, ”, Jacob Channel, Andy Wagner, Wagner, Bankrate’s McBride, Michael P, aren’t, Lani, —, Guy Cecala, ” Cecala Organizations: New, Federal Housing Finance Agency, Government, Jumbo, Nations Lending, ARM, American Mortgage Resource Inc, Inside Mortgage Finance, Bank of America, Chase, Mortgage Finance Locations: Minneapolis, Sacramento, CA, Denver, Boston, San Diego, New York City, Jackson, Chicago, Massachusetts, Wells, Fargo

☆ How to get better returns on your cash now
▼ + stars: | 2023-06-21 | by ( Chris Taylor | ) www.reuters.com time to read: +5 min

NEW YORK, June 21 (Reuters) - You might assume that with U.S. interest rates at new highs, Americans are getting terrific returns on savings. MONEY MARKET FUNDSIn brokerage accounts there is a default or "sweep" account, where cash is kept before you make other investments. The two highest yields at the moment for government money market funds, according to data trackers iMoneyNet: UBS Liquid Assets Government Fund at 5.07%, and Vanguard Treasury Money Market Fund at 5.06%. An important note about terminology: Money market funds are distinct from money market accounts. “All of these are very appealing, and we are recommending people reassess their cash and emergency fund savings.

Persons: ”, Greg McBride, ” McBride, James Gambaccini, Gambaccini, –, Sallie Mae, Brandon Opre, Chris Taylor, Lauren Young, Matthew Lewis Organizations: YORK, Federal Reserve, BMO, TIAA Bank, Treasury Bills, U.S ., Barclays, UBS Liquid Assets Government, Vanguard Treasury Money Market, Thomson Locations: www.TreasuryDirect.gov, Reston , Virginia, Huntersville , North Carolina, New York

☆ The Fed’s latest pause still means high rates for you
▼ + stars: | 2023-06-14 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +6 min

The average bank savings rate as of June 7 was a mere 0.25%, according to Bankrate.com. But that’s because the savings rates at the biggest US banks pay very little — see, for instance, 0.01% at JPMorgan Chase (JPM). Currently, the average credit card rate is at a record high of 20.44% as of June 7, according to Bankrate.com. [And] home equity rates are the highest in more than 20 years,” McBride said. The average rate on a 30-year mortgage was 6.71% in the week ending June 8, down from 6.79% the week before.

Persons: ”, Greg McBride, Sara Kalsman, Schwab, you’ll, That’s, ” McBride, Bankrate, McBride, Anna Bahney Organizations: New, New York CNN, Federal Reserve, JPMorgan Chase, Fidelity, Fed, “ Locations: New York, Boston, Detroit

☆ Inflation dropped to 4% in May—but the 'biggest risk' is that core prices will remain sticky
▼ + stars: | 2023-06-13 | by ( Mike Winters | ) www.cnbc.com time to read: +3 min

That's because core inflation — which excludes volatile food and gas prices — remains high at a year-over-year rate of 5.3%. In May, core inflation rose by 0.4%, following steady monthly increases averaging 0.4% so far in 2023. It's also considered to be a barometer of "sticky" inflation, since core prices change more slowly than other measures, like gas prices. This "sticky" core inflation is the result of "an imbalance between demand and supply," with too many dollars chasing too few goods, says McBride. However, it's possible that another increase will be on the table when the central bank meets in July, especially if core inflation shows no signs of declining.

Persons: it's, It's, Greg McBride, McBride, there's, Warren Buffett, Taylor Swift Organizations: Federal Reserve, Labor, CPI, Fed, Federal

☆ Here's the inflation breakdown for May 2023, in one chart
▼ + stars: | 2023-06-13 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

The CPI is a key barometer of inflation, measuring prices of anything from fruits and vegetables to haircuts and concert tickets. Where consumers saw inflation, deflation in MayConsumers saw gasoline prices decline 5.6% between April and May, according to the CPI report. "Energy prices at this time last year were just absurd," Leer said. watch nowBut food and energy prices can be volatile. "The progress on core inflation has stalled out in recent months," said Greg McBride, chief financial analyst at Bankrate.

Persons: Michael M, Leer, Greg McBride, They're, Ben Bernanke, Olivier Blanchard Organizations: Lincoln Market, Santiago, Getty, U.S . Bureau of Labor Statistics, Consumers, CPI, Bureau of Labor Statistics, BLS, U.S . Federal Reserve, Peterson Institute for International Economics, Bankrate Locations: Prospect, Brooklyn, New York City, U.S, Ukraine

☆ The U.S. reached a deal on the debt ceiling. Here’s what might be next for investors in Treasurys
▼ + stars: | 2023-06-04 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

The worst of the debt ceiling crisis is over now that lawmakers have passed a bill and sent it to President Joe Biden for signing, but investors are about to see an influx of Treasury securities enter the market. A large issuance of new Treasurys could push down prices of holdings in investors' portfolios. While large investors scoop up the new T-bills, the extent to which individual investors capture the benefit will also depend on the Federal Reserve's policy stance. "As you get past the debt ceiling, getting paid on your cash is still a concern, and doing it with T-bills where you still get a 5% yield is attractive," Tannuzzo said. "Interest rates have been so low, and to see 4%, 5% on T-bills – you can make money on money, and that's wonderful," Shagawat said.

Persons: Joe Biden, Morgan Stanley, Gene Tannuzzo, Tannuzzo, James Shagawat, Greg McBride, Shagawat, Treasurys, he's, Michael Bloom Organizations: Treasury, Columbia, Federal, Federal Reserve, AdvicePeriod

☆ Get paid for doing nothing: What you should know about cash sweep accounts
▼ + stars: | 2023-05-19 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Doing nothing pays these days — at least that's the case if you're talking about cash that's sitting in your brokerage account. Consider Fidelity Investments is offering a 2.6% APY on its cash management account, but LPL Financial pays 0.45% on its insured cash account for clients with $300,000 to $500,000 in household value. First, examine your goals for the money before you shop around for cash sweep rates. Finally, if you do pile cash into your sweep account, think about the tax implications of doing so. Some firms offer different options for investing your cash sweep account, including a municipal money market fund for investors who reside in high-tax states.

☆ 4 of the best places for cash as the Federal Reserve weighs a pause in interest rate hikes
▼ + stars: | 2023-05-06 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +4 min

Hero Images | Hero Images | Getty ImagesWhether you're building an emergency fund or short-term savings, finding the best place for your cash isn't easy — especially as the Federal Reserve weighs a pause in interest rate hikes. The central bank on Wednesday unveiled another quarter percentage point interest rate increase, with signals that it may be the last. But higher yields are still available for those "willing to shop around," said Greg McBride, chief financial analyst at Bankrate. While the average savings rate is still below 0.5%, some of the top high-yield online savings accounts are paying over 4%, as of May 4. However, CDs are generally less liquid than savings accounts because you may owe a penalty for cashing out before the term ends.

"My belief is that we don't get inflation down to 2% without a recession," said Greg McBride, chief financial analyst at Bankrate. As the economy fluctuates, experts say there are several key risk areas that consumers may want to keep an eye on. That still leaves about 1.6 open jobs to every available worker, which is "very good," according to Andy Challenger, senior vice president at outplacement firm Challenger, Gray & Christmas. Pricey car loan 'quickly becomes untenable'Auto loan delinquencies are already rising, particularly for borrowers with weaker credit profiles, McBride noted. In 2022, consumers paid $133.1 billion in credit card interest and fees, a 23.1% increase from the estimated $108.1 billion they paid in 2021.

☆ How Fed rates hikes impact consumers
▼ + stars: | 2023-05-03 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHow Fed rates hikes impact consumersDavid Wessel, senior fellow in Economic Studies at Brookings Institutions, and Greg McBride, chief financial analyst at Bankrate.com, join 'The Exchange' to discuss rising interest rates' impact on consumer loans and the economy.

☆ Where to get the best returns on your savings when rates are high
▼ + stars: | 2023-05-03 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +6 min

The average bank savings rate as of April 26 was a paltry 0.24%, according to Bankrate. At some of the biggest banks, savings rates are as low as 0.01%. For the rest of your emergency fund and other savings, you can get a healthy return just by opening an online high-yield savings account at an FDIC insured online bank. As with most bank rates, high-yield rates are variable so can change at any point. Don’t chase yieldAs attractive as many savings rates are today, they are no substitute for the long-term returns you can earn in a diversified investment portfolio of stocks, bonds and other assets.

☆ The Fed's nod to the end of its rate hiking cycle could mean 'last call' for savers
▼ + stars: | 2023-05-03 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

The Federal Reserve raised its fed funds rate for the 10th time on Wednesday, to a range of 5%-5.25%. "This could be 'last call' for savers," as CD yields on maturities of 1-year and longer have peaked, it said. He added: "A slowing economy coupled with the Fed moving to the sidelines mean CD yields will start pulling back soon." The Federal Reserve Open Market Committee on Wednesday unanimously voted to raise the fed funds rate to 5%-5.25%. For now, Bankrate's list of the best current CD rates and Insider's list of CD rates feature yields of 5.1% to 5.25%.

☆ Your mortgage and home loans: What to do now that the Fed just raised rates for the 10th time
▼ + stars: | 2023-05-03 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +2 min

The 30-year fixed rate mortgage has run north of 6% all year. As to where mortgage rates go next, look to inflation. If inflation keeps dropping, then mortgage rates are expected to drift lower too. The average home equity loan rate was running at 7.94% as of April 26, well above the 6.4% recorded in mid-April last year. If you are close to buying a home or refinancing one, it may be a good idea to lock in the lowest fixed rate available to you.

☆ Inflation is falling for Americans, but it's probably not enough to slow the Fed's next interest rate decision this week
▼ + stars: | 2023-05-02 | by ( Ayelet Sheffey | Madison Hoff | ) www.businessinsider.com time to read: +5 min

This week, the Federal Reserve will likely announce the third interest rate hike this year. But a pause on interest rate hikes could be in the cards in June. There was a massive slowdown in the year-over-year percent change in the Consumer Price Index from February to March — dropping from 6.0% to 5.0%. The personal consumption expenditures price index also suggests a cooldown but is still elevated, with the year-over-year rate falling from 5.1% in February to 4.2% in March. Following the March interest rate hike, Warren wrote on Twitter that "Powell made a mistake not pausing its extreme interest rate hikes."

☆ Savings account interest rates just hit a 15-year high, but fewer Americans are benefitting
▼ + stars: | 2023-04-20 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Most people said the main reasons for not switching to a high-yield savings account were because they preferred their local branch or were comfortable at their current bank. 49% have less in savings, or none, compared to 2022 Americans, overall, are saving less. Nearly half, or 49%, of adults have less savings or no savings compared to a year ago, according to a separate Bankrate survey from February. More than one-third also now have more credit card debt than emergency savings, which is the highest on record. In 2022, 4.5% of households had no checking or savings account, according to the FDIC's latest survey.

☆ Inflation took a massive plunge in March
▼ + stars: | 2023-04-12 | by ( Madison Hoff | ) www.businessinsider.com time to read: +2 min

That's according to the year-over-year increase of the Consumer Price Index for March. The Consumer Price Index increased 5.0%, the lowest rate since May 2021. Inflation as measured by the Consumer Price Index (CPI), soared by a 5.0% year-over-year increase in March, less than the year-over-year increase of 6.0% in February. Core CPI, which excludes volatile food and energy prices, increased by 5.6% year-over-year per data that wasn't seasonally adjusted. The Fed has continued to fight inflation with interest rate hikes.

☆ Here’s the inflation breakdown for March 2023 — in one chart
▼ + stars: | 2023-04-12 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

But swings in gasoline and other energy mask price pressures that, while easing, remain under the surface, economists said. "It's improving and the economy is cooling, but it's still far from tepid," Diane Swonk, chief economist at KPMG, said of inflation. What drove inflation in March 2023Housing was a "notable" inflation driver in March and over the past year, according to the BLS. The shelter index increased 8.2% in the last year, accounting for over 60% of the total increase in consumer prices after stripping out the volatile energy and food categories. "It signals the food inflation fever has been broken," Zandi said.

☆ Premarket stocks: Wall Street has found something else to worry about
▼ + stars: | 2023-04-11 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

Retail investors are buying bank stocksTD Ameritrade released its March Investor Movement Index on Monday, which tracks what retail investors are up to. Lately, large companies have begun to change their investor relations strategies to become more retail investor friendly. “March was full of surprises, but the overall impact among TD Ameritrade retail clients when it came to exposure to the markets was neutral,” said Lorraine Gavican-Kerr, managing director at TD Ameritrade. Retail investors, meanwhile, were net sellers of Meta, NVIDIA, Advanced Micro Devises, Intel and Apple. Inflation expectations for the year ahead have increased by half a percentage point to 4.7%, the survey found.

☆ 'The credit crunch has started': Here's what tighter lending standards mean for American consumers and businesses as banks navigate the SVB wreckage
▼ + stars: | 2023-04-08 | by ( Carla Mozée | ) www.businessinsider.com time to read: +6 min

"Each bank is going to apply those credit standards differently," a source told Insider. Requiring higher minimum credit scores and minimum repayments and curbing credit limits were among tweaks banks were making. Lending to consumers dropped and credit standards and terms "continued to tighten sharply," with marked rises in loan pricing. A "dramatic worsening of firm and consumer access to bank credit," is how a 2014 paper on the Federal Reserve's website describes a credit crunch. Tighter lending standards may have a big impact on floating-rate loans versus fixed loans, CFRA equity analyst Alexander Yokum told Insider.

☆ Just 22% of savers are earning 3% or more on their cash. Here’s how to find better interest rates
▼ + stars: | 2023-04-03 | by ( Lorie Konish | ) www.cnbc.com time to read: +2 min

Aaronamat | Istock | Getty ImagesOver the last 15 years or so, the interest rates you could earn on your cash were very low. Just 22% of savers are earning interest of 3% or more on their accounts, a recent survey conducted by Bankrate. Most savers are earning far less, with 24% of respondents earning between 1% to 2.99%, and another 24% earning less than 1%. Some savers — 16% — are not earning any interest at all, while 14% said they don't know if they are earning any returns on their cash. You may be able to find a better deal elsewhere for your cash as banks jockey to provide the most competitive rates.

☆ How the Fed’s latest rate increase will affect your bank savings
▼ + stars: | 2023-03-27 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +3 min

“Returns on savings accounts and CDs are the best in 15 years,” said Greg McBride, chief financial analyst for Bankrate.com. But online high-yield savings accounts now offer rates as high as 5%, well above the 0.23% national savings account average, according to Bankrate. “You’re leaving a lot of money on the table if you don’t go to an online bank,” McBride said. You can still get the current 6.89% rate on the I Bond if you purchase it before the end of April. “In other words, I Bonds are not a replacement for your savings account,” McBride said.

☆ What to do with your credit card debt now that the Fed raised rates again
▼ + stars: | 2023-03-25 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +2 min

New York CNN —The Federal Reserve on Wednesday raised its key interest rate for the ninth time since last March. That means consumer debt — especially variable-rate credit card debt — will get more expensive. “[T]he average credit card rate is now at a record high above 20%,” said Greg McBride, chief financial analyst for Bankrate.com. If you don’t transfer to a zero-rate balance card, another option might be to get a relatively low fixed-rate personal loan. But the best rate you can get will depend on your income, credit score and debt-to-income ratio.

☆ The Fed is expected to raise interest rates, despite recent banking turmoil: 'This will be a game-time decision'
▼ + stars: | 2023-03-22 | by ( Mike Winters | ) www.cnbc.com time to read: +3 min

Current benchmark interest rates are in a range of 4.5% to 4.75%, with another hike expected. But with the March 10 collapse of SVB raising fears about a banking crisis, observers including Goldman Sachs economists expected no rate increase in March based on the news. Despite the fears of a banking crisis, forecasts of a 25 basis point increase suggest that inflation is still an overriding concern for the Fed. For some borrowers, interest rates on loans have nearly doubled in the last year, increasing the burden for consumers reeling from high inflation. With a hike, the average interest rate charged on credit card debt will have grown by nearly 5% since a year ago, to over 20%.

Search resuls for: "Greg McBride"

25 mentions found