Bloomberg Wealth: “Where to Earn 7.12% on Your Savings”
Bloomberg Wealth, Nov. 4, 2021 — Marguerita Cheng, CFP® Pro is featured in today’s article of Bloomberg Wealth written by reporter Charlie Wells, who explains: “So you think 0.5% is the best you can get for your extra cash? Chances are, if you were able to sock away some money during the pandemic, you’re still holding onto a lot of it.”
Calculations by Bloomberg Economics show that U.S. consumers have simply not been drawing down their savings. Excess savings in euro-area bank balances declined only marginally in August, and Italy actually recorded an increase.
“People have been looking for ways to get a better return on their money. For some, that means trading stocks or betting on crypto. Others who want a safer option turned to high-yield savings accounts, but those returns are pretty low. Which is why it came as a surprise to many of us when the U.S. government announced that the new rate for Series I savings bonds will be 7.12% now through April 2022 — the second highest ever offered.”
Charlie turned to Marguerita Cheng, CFP® Pro and CEO of Blue Ocean Global Wealth Management for insights.
“It’s important to have both savings and investments,” insists Marguerita. “Savings generally have a shorter time horizon with a focus on share price stability and liquidity. Investments generally have a longer time horizon, such as college or retirement.”