Fintech Raisin is a savings platform that streamlines the process of uncovering the best savings rates on the market. Yesterday, the US Federal Reserve slashed benchmark rates by 50 basis points – a larger move than many expected. Today, markets are rallying as observers believe the larger cut is not a sign of deeper economic problems. At the same time, investors are wondering where they should put their money as more cuts are expected in the future.
Yesterday, Raisin said in an email:
Even if rates are coming down, you can remain confident that our partners will continue to offer some of the best rates in the nation through our platform, especially in comparison to the big banks that continue to offer rates as low as 0.01%.
And;
It’s easy to get caught up in headlines, but don’t lose sight of the bigger picture: you’re still earning at the top of the market. Rates may fluctuate, but cash savings remain a stable and highly competitive way to grow your money. Even with this decrease, you remain in a stronger position to earn more on your cash than at almost any point in the past two decades.
Most big banks have never offered competitive savings rates for consumers. They trusted in individual inertia for people to keep their money with them – while they benefited from higher rates. Financial firms like Bank of American and Chase currently promote a measly 0.01$ APY. Basically, a negative real rate of return on your money.
A glance at Raisin’s offerings indicate that some savings accounts available are generating over 5% – up to 5.18% APY. There are CDs listed at 5% APY. Money market accounts similarly are offering over 5%.
While it could take some time for rates to filter through, individuals that want to maximize their returns on parked cash would so well to keep an eye on which firms are providing the best rates with low risk.