Question: definition of "7-day current yield"

[labmice]

what does it mean when a money market account has a 7-day current yield of 2.51%

thank you...

 

[labmice]

please help

 

[BiggieC]

Where did you get the information from, that would help

 

[labmice]

i got the info here...

linky

 

[labmice]

can some one please help...

trying to figure a good way to invest my hard earn money... sad thing is that im a ee... and don't know much about econ stuff... thank you

greatly appreciated

 

[BiggieC]

Basically what they are offering is a return on your money that is relatively safe and liquid, meaning you can convert it to cash quickly and easily. The yeild is on a per year basis, meaning you will receive about 2% on your investment per year. the reason why the california tax exempt fund is only 1.4 % is because it is tax exempt, while you will be taxed on the 2% or so you earn on the others. These really are low returns for your money. Most b&m banks offer low returns on what is basically a savings account. in comparison, i put my money in an ing account that earns about 4%, (it was 6) and only keep what i will need for the month in my wellsfargo checking.

 

[labmice]

thank you biggieC

another question... what's an ing account...

 

[BiggieC]

I would suggest you take a look at ingdirect.com. I originally opened an account for the fifty dollar bonus they were giving, and that was over a year ago. The account is linked directly to your regular bank account, and it only takes a day or two for the money to transfer. there are no fees AT ALL from ING, and they offer a great return on your money. It is also FDIC insured and you can freely move the money back and forth from your bank of america checking account to your ING accoutn. also, their is a thread in the hot deals section of AT that talks about ING. Its the safest way i have found to earn a decent return. Most banks savings account offer less than a 1% return

 

[labmice]

thank you... greatly appreciated...

 

[BiggieC]

Your really not going to earn much more than 4 percent at this time of low interest rates, unless you invest in securities (stocks) or mutual funds, but then there is an added risk. 4 percent really isnt that much over a short period of time. You have to figure that for every $1000 you have in the savings account, you will only get about $40 per year, and then you have to pay about 20% of that $40 in taxes.