As I sat at the pump filling up my car today for $4.53/US Gal for premium, it dawned on me that gas is becoming an appreciating commodity. Bear with me for a second. As we look at the national average for lets say a 5 year CD, we see and APR of 3.62%. The latest number on inflation from April 2007 to April 2008 (based of CPI) is 3.9%. In other words the 5 year CD would not keep your green back buying power up with inflation.
Now for the sake of this argument lets look at something a bit shorter, say 2 months. US national average for a 2 month CD is 1.87%. Lets compare this to the increase in gasoline prices in California over the last to months (April 2008 to June 2008); in this 2 month period gas prices have risen a staggering 9%.
So in this inflationary time should I be investing in gas? Should I be saving my milk cartons to fill with gas and then keep in my garage to use in my car later or maybe sell to my neighbors? Kinda makes you think.......Happy driving.
With the Fed cuts bringing interest rates to 5 year lows, savings accounts across the country are suffering. Lower interest rates my help the buying side of your pocketbook but it hurts the savings side (which hopefully is bigger). Searching for savings accounts that has acceptable interest rate has become increasingly more difficult. In my own search for a high yielding savings account i stumbled across the Bank Deals Blog. This is an awesome site run by "Ken the bank Deals Guy". Ken serves to make our lives easy by finding the best rates across the country on checking, savings, money market, and CD accounts. He even finds out the "catch" for the high rates and includes customer service ratings. I recommend you be a smart investor, check out his site here and know your money is earning the best rate possible.
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