TheMarketTone.com

Many of us including myself have decided to raise cash during these volatile markets. I have put together a few pointers for the best cash management:

• Spread your money around
  • It’s safe to put up to $100,000 in a single FDIC-insured bank account. To protect yourself, spread your cash around several institutions, not all of which need be banks. Many people learned his the hard way from the collapse of IndyMac.

• Use short term CDs
  • Keep CD maturities short so you can roll it over at a better rate, when the Federal Reserve raises short term interest rates. These rates are likely to start heading higher by year’s end as the Fed is now becoming increasingly concerned about rising inflation and the falling dollar.

• Use an online bank as these FDIC insured accounts still pay above average CD and saving’s rates.

Using these tips I have searched for the best yielding short term CDs and saving’s rates, which are shown below.

 Remember that in the short term, cash can indeed be king. But in the long term, cash is almost sure to lose purchasing power because of inflation.