Finance Rates Blog

60-month New-car Loan rates remain unchanged in the United States Monday
60-month New-car Loan rates remain unchanged in the United States Monday
60-month New-car Loan rates remain unchanged in the United States Monday

EverBank is a prominent online bank which has been offering a wide variety of investing options not found from your typical online bank. Listed below are many of the products currently available at EverBank, although investors should read carefully the disclosures and fine print of each product to fully understand the nature of the bank products.

EverBank WorldCurrency CDs

The EverBank WorldCurrency CDs pay a fixed rate of interest for the lifetime of the CD in local currency. All of the below listed CDs are subject to appreciation or depreciation of the local currency if converted back to US dollars.

Australian Dollar 90-day CD 5.09% yield

Swiss Franc 1-year CD 0.75% yield

Click here for more information.

EverBank DollarBull CDs

The Everbank Dollar CDs are similar to the WorldCurrency CD except in reverse. You “borrow” money from a foreign country and benefit if the U.S. dollar appreciates against the currency. DollarBull CDs are available in all major currencies. Again, investors can lose money when converting funds back to US dollars. Click here for more information.

EverBankMarketSafe CDs

The EverBank MarketSafe CDs allow investors to earn a percentage of the upside return on Gold or Silver, while funds are protected from losses if gold and silver depreciate during the lifetime of the CD. The return is determined by an average of the spot price of gold or silver during the lifetime of the CD compared to the spot price at the time of purchase of the CD. Click here for more information. Click here for more information.

EverBank WorldCurrency Index CDs

The Everbank WorldCurrency Index CDs offer a multi-currency CD with returns weighted. Everbank offers a variety of types of WorldCurrency Index CDs which are strategically designed to focus on a specific regional strength, and/or geopolitical and economic development like Commodities, Petrol, or Pacific Rim countries. The returns are subject to the weighted appreciation or depreciation of the underlying currencies when converted back to US dollars. Click here for more information.

EverBank WorldCurrency Access Deposit Accounts Allow investors to earn return in a money market denominated in the currency of their choice. The returns are subject to the weighted appreciation or depreciation of the underlying currencies when converted back to US dollars. Click here for more information.

5.00% is looking like a fantastic investment return in this environment of falling interest rates and shaky stock markets. Locking in the 5% return for 4 years might even allow for the funds to be reinvested in an economy that is stronger with more attractive investment options. We don’t know how many more 5.00% rate deals we are going to see in 2008 (if any), but National City Bank has extended their 4-year CD 5.00% rate special another few weeks.

National City Bank is a large multi-state bank (branches located in Indiana, Illinois, Kentucky, Michigan, Missouri, Ohio, Pennsylvania and Wisconsin) which has been offering deposit products consistently among the highest yielding in the nation . National City Bank is running a promotion until at least March 22, 2008 in which they are offering three different deposit rate specials as listed below:

Certificate of Deposit Special

Choose your term: 5.00% 48-month CD or 4.00% 24-month CD

Minimum Deposit: $10,000

To qualify for this offer, you must have an existing National City personal checking or savings account (except CDs and IRAs), or open a new personal checking account (except Free Checking) or a Money Market Savings account with $1,500

For more information or to apply call (800) 622-4036 or visit nationalcity.com.

Money Market Savings Special

3.05% Promotional APY guaranteed for 180 days

Offer good for balances of $5,000 or more (with funds not currently on deposit at National City)
Offer good for customers with an existing National City personal checking account or open a new personal checking account (except Free Checking) with a minimum of $1,500.
Easy access to your money at ATMs, online, by phone, or at any of our convenient locations.

For more information or to apply call (800) 622-4036 or visit nationalcity.com.

For more online bank rates visit money-rates.com.

A number of banks including Acacia Federal Savings Bank, Greystone Bank, National City Bank, iGObanking, KeyDirect, and Capital One Bank have increased their longer-term CD rates. Either the banks are responding to the higher yield on longer term Treasuries or are trying to become more competitive in bringing in more deposits, but either way savings investors can lock-in higher rates than they could one week ago. Rates available today include:

2-year CD rates as high as 4.10% APY

2.5-year CD rates as high as 4.00% APY

3-year CD rates as high as 4.01% APY

4-year CD rates as high as 5.00% APY

5-year CD rates as high as 4.25% APY

7-year CD rates as high as 5.05% APY

10-year CD rates as high as 5.05% APY

There have been a lot of questions about the Who? What? Where? and Why? of the government’s stimulus package payment to US taxpayers recently approved by Congress. Here are all the answers provided directly by the Internal Revenue Service on their website:

Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million individuals. The stimulus payments will go out through the late spring and summer.

The vast majority of Americans who qualify for an economic stimulus payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year. They will not have to complete applications, file any extra forms or call the Internal Revenue Service to request the payment, which is automatic. The IRS will determine eligibility, figure the amount and issue the payment.

Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns. Taxpayers who have already filed with direct deposit won’t need to do anything else to receive the stimulus payment. For taxpayers who haven’t filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments.

Basic Eligibility

The IRS will use the 2007 tax return to determine eligibility and calculate the basic amount of the payment. In most cases, the payment will equal the amount of tax liability on the return with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return) and a minimum of $300 for individuals ($600 for taxpayers who file a joint return).

Even those who have little or no tax liability may qualify for a minimum payment of $300 ($600 if filing a joint return) if their tax return reflects $3,000 or more in qualifying income. For the purpose of the stimulus payments, qualifying income consists of earned income such as wages and net self-employment income as well as Social Security or certain Railroad Retirement benefits and veterans disability compensation, pension or survivors benefits received from the Department of Veterans Affairs in 2007. However, Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.

Low-income workers who have earned income above $3,000 but do not have a regular filing requirement must file a 2007 tax return to receive the minimum stimulus payment. Similarly, Social Security recipients, certain Railroad retirees, and those who receive the veterans benefits mentioned above must file a 2007 return in order to notify the IRS of their qualifying income.

The IRS emphasized that people with no filing requirement who turn in a tax return to qualify for the economic stimulus payment will not get a tax bill. People in this category will not owe money because of the stimulus payment.

Additional Payments for Parents and Others with Qualifying Children

Parents and anyone else eligible for a stimulus payment will also receive an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number.

Limitation

To be eligible for a stimulus payment, taxpayers must have valid Social Security numbers. Anyone who does not have a valid Social Security number, including those who file using an Individual Taxpayer Identification Number (ITIN), an Adoption Taxpayer Identification Number (ATIN) or any other identification number issued by the IRS is not eligible for this payment.

Both individuals listed on a married filing jointly return must have valid Social Security numbers to qualify for a stimulus payment.

Eligibility for the stimulus payment is subject to maximum income limits. The payment, including the basic amount and the amount for qualifying children, will be reduced by 5 percent of the amount of income in excess of $75,000 for individuals and $150,000 for those with a Married Filing Jointly filing status.

Individuals who pay no tax and who have less than $3,000 of qualifying income will not be eligible for the stimulus payment.

Wachovia Bank has a savings program called Way2Save that links a Wachovia checking account to a Way2Save account and credits the account $1 for each check card purchase, automatic debits from your checking account, and online bill payments. To build balances even faster, you can set up an automatic transfer, up to $100 each month, from your checking to your Way2Save account. During the first 3 years of the Program, a special interest rate and Annual Percentage Yield (APY) will be offered and will be: 5.00% APY Year 1 and 2.00% APY Years 2 and 3. The APY on your Way2Save account will change 12 months from the date the first transfer was credited to your account and each 12 months thereafter, during the first 3 years. At the start of year 4, the APY will be the same as the Premium Savings rate in effect at that time. The Way2Save account is a variable-rate account and the rate is subject to change.

Click here to view the Way2Save Calculator and see how much this program can save you. Wachovia Bank has branch offices in over 15 states where the account can be opened or apply online.

Find more Savings Account rates here.
Find more Online Bank Deals here.

The best sites for finding bank money market rates are those sites that keep it simple and include comprehensive up-to-date information. Surprisingly, Bankrate.com fails both test miserably. Bankrate.com forces the user to go through menu after menu to finally find a money market rate table that is not sorted by the highest rates and worse of all does not include all the banks listed on other sites. Sites where a savings investor can find a high yielding bank money market account include:

Money-rates.com

Bankcd.com

Bankaholic.com

Other sites that are not as comprehensive but with good information on bank money market rates include:

Emoneycentral.com

Gotalkmoney.com

Banx.com

Post your comments and revisions to this below.

Wells Fargo & Company announced that it has taken a $39 million loss on Structured Investment Vehicles (SIVs) which were used in the portfolios of a number of their money funds. The $39 million is not devastating to company who holds over $106 billion in money market mutual funds, but is another example of money fund managers extending their risk tolerance to grab extra yield in an investment that most investors consider completely safe.

Investors have relied on the historically-stable $1 net asset value that all money market mutual funds quote without much thought of their mutual fund company “breaking the buck”. However, when companies like Well Fargo, Bank of America, and State Street Boston are forced to infuse cash into their money funds to stablize the returns then investors need to consider just who is standing behind the $1 price on their money fund as the higher yielding money funds may hold riskier more volatile holdings than those funds yielding less. Fund managers have a lot more discretion than investors may expect in a conservative money fund and have been tempted by the lure of higher yields into mortgage securities and complex investments like the SIVs that have lost value and liquidity. With interest rates falling and competition for cash always intense, fund managers may continue this trend despite the negative publicity generated by companies who have propped up their money funds. Investors with a money fund backed by a large financially strong company may be in a better position to expect their mutual fund to hold a $1 net asset value through any financial catastrophe. The four funds listed below are from large respected companies:

AARP Money Market Fund (3.43% effective yield)

Fidelity Money Market Fund (3.47% effective yield)

TIAA-CREF Money Market Fund (3.65% effective yield)

Vanguard Money Market Fund (3.77% effective yield)

These four companies are not at the top of a list of the highest yielding money funds, but AARP, Fidelity, TIAA-CREF, and Vanguard are four blue-chip companies very likely to stand behind their money funds in the event of financial turmoil.

Government bond funds are a favorite of investors due to the safety of the underlying holdings which are primarily securities issued by the Treasury Department or government-sponsored entities. While normal bond fund managers can buy riskier lower-rated bonds to boost yields, the government bond fund manager is heavily restricted to the type of holdings in their funds. Interest-rate risk is always a factor with bond funds, but in general the shorter the duration of the holdings in the fund the less volatile the returns of the fund will be. Below are some funds which have been identified by Morningstar as out-performing funds:

Short-term Government Bond Funds

Funds that primarily invest in U.S. government securities which may include Treasury bills, notes, bonds, mortgage-backed securities issued by government lending agencies and other Treasury securities with maturies less than five years.

JP Morgan Treasury and Agency Select (OMBAX) - yield 4.51%, YTD return 2.34%, 2007 return 6.56%, expense ratio 0.65%, minimum investment $10,000
Vanguard Short Term Treasury (VFISX) - yield 4.11%, YTD return 2.63%, 2007 return 7.62%, expense ratio 0.26%, minimum investment $3,000
Vanguard Short Term Treasury (VSGBX) - yield 4.34%, YTD return 2.11%, expense ratio 0.20%, minimum investment $3,000
Fidelity Spartan Short (FSBIX) - yield 4.17%, holds 97% securities rated AAA primarily US Treasuries, average maturity of holdings 2.40 years, 2007 return 7.71%, minimum investment $10,000

Intermediate-term Government Bond Funds

Funds that primarily invest in U.S. government securities which may include Treasury bills, notes, bonds, mortgage-backed securities issued by government lending agencies and other Treasury securities with maturities typically between five and ten years.

Morgan Stanley U.S. Government (USGAX) - yield 4.48%, holds 100% securities rated AAA primarily U.S. Treasuries and government mortgages securities, average maturity of holdings 6.30 years, 2007 return 6.50%, minimum investment $1,000
Vanguard GNMA (VFIIX) - yield 5.09%, YTD return 1.50%, expense ratio 0.21%, minimum investment $3,000
Fidelity Government Income (FGOVX) - yield 4.34%, YTD return 2.11%, expense ratio 0.20%, minimum investment $3,000

Long-term Government Bond Funds

Funds that primarily invest in U.S. government securities which may include Treasury bills, notes, bonds, mortgage-backed securities issued by government lending agencies and other Treasury securities with maturities typically ten years and longer.

Vanguard Long-Term US Treasury (VUSTX) - yield 4.50%, YTD return 1.58%, expense ratio 0.26%, minimum investment $3,000
T Rowe Price US Treasury Long Term (PRULX) - yield 4.28%, YTD return 1.85%, expense ratio 0.55%, minimum investment $2,500

Another type of fund which has performed well in the last year are inflation-protected funds. These funds are heavily invested in Treasury Department securities and are designed to match the rate of inflation in the US economy.

Inflation-Protection Funds

Fund which specifically target offering a return that exceeds or matches inflation are available for investors who might need inflation protection in their portfolio.

Franklin Real Return A (FRRAX) - yield 3.81%, 2007 return 9.83%, $1,000 minimum investment
DWS Inflation Protected Plus (TIPIX) - yield 4.71%, 2007 return 11.57%, $1,000,000 minimum investment
State Farm Interim (SFITX) - yield 4.39%, 2007 return 7.41%, $250 minimum investment
Hartford Inflation Plus A (HIPAX) - yield 3.83%, 2007 return 11.58%, $1,000 minimum investment
Schwab Inflation Protected Select (SWRSX) - yield 4.26%, YTD return 6.90%, $50,000 minimum investment

Fed Chairman Ben Bernanke, a long-time proponent of inflation-targeting, has set a specific inflation target of 1.5% to 2% over three years in a semi-annual FOMC report to Congress. Bernanke and the Fed were thought to have set a target as low as 1% to 2% so the “new” target range gives the Fed a little more leeway on the side of interest rate cuts in the risk of inflation vs the risk of growth debate. The subtle announcement by the Fed of a specific inflation target has been overshadowed by the release of 4th quarter GDP which shows the US economy growing at a 0.6% pace. Overall the economy grew at a pace of 2.2% in 2007 vs the 2.6% rate in 2006. The language of recent statements by Fed officials indicates that the 50-point rate cuts expected at the March meeting of the FOMC can still be expected, although Fed watchers are now predicting and trading on Fed Funds futures contracts at the Chicago Board of Trade is now indicating an expected floor of 2.00% on the Fed Funds rate (currently at 3.00%) before the Fed reverses its trend of lowering interest rates.

Investors looking to park their cash during this cycle of economic slowdown and low interest rates can expect to find more diminishing rates on bond funds, money markets, money funds, CDs, savings accounts, and other fixed-income investments. For the savings-oriented investor, there are many bank deals posted at money-rates.com where investors who open an online bank account can still find 4.00%, 5.00%, and even 6.00% rates and the rates offered on US Savings Bonds have become more attractive when compared to US Treasury yields.

1-year Jumbo CD rates go up in the United States Monday
1-year Jumbo CD rates go up in the United States Monday
1-year Jumbo CD rates go up in the United States Monday

EverBank is a prominent online bank which has been offering a wide variety of investing options not found from your typical online bank. Listed below are many of the products currently available at EverBank, although investors should read carefully the disclosures and fine print of each product to fully understand the nature of the bank products.

EverBank WorldCurrency CDs

The EverBank WorldCurrency CDs pay a fixed rate of interest for the lifetime of the CD in local currency. All of the below listed CDs are subject to appreciation or depreciation of the local currency if converted back to US dollars.

Australian Dollar 90-day CD 5.09% yield

Swiss Franc 1-year CD 0.75% yield

Click here for more information.

EverBank DollarBull CDs

The Everbank Dollar CDs are similar to the WorldCurrency CD except in reverse. You “borrow” money from a foreign country and benefit if the U.S. dollar appreciates against the currency. DollarBull CDs are available in all major currencies. Again, investors can lose money when converting funds back to US dollars. Click here for more information.

EverBankMarketSafe CDs

The EverBank MarketSafe CDs allow investors to earn a percentage of the upside return on Gold or Silver, while funds are protected from losses if gold and silver depreciate during the lifetime of the CD. The return is determined by an average of the spot price of gold or silver during the lifetime of the CD compared to the spot price at the time of purchase of the CD. Click here for more information. Click here for more information.

EverBank WorldCurrency Index CDs

The Everbank WorldCurrency Index CDs offer a multi-currency CD with returns weighted. Everbank offers a variety of types of WorldCurrency Index CDs which are strategically designed to focus on a specific regional strength, and/or geopolitical and economic development like Commodities, Petrol, or Pacific Rim countries. The returns are subject to the weighted appreciation or depreciation of the underlying currencies when converted back to US dollars. Click here for more information.

EverBank WorldCurrency Access Deposit Accounts Allow investors to earn return in a money market denominated in the currency of their choice. The returns are subject to the weighted appreciation or depreciation of the underlying currencies when converted back to US dollars. Click here for more information.

5.00% is looking like a fantastic investment return in this environment of falling interest rates and shaky stock markets. Locking in the 5% return for 4 years might even allow for the funds to be reinvested in an economy that is stronger with more attractive investment options. We don’t know how many more 5.00% rate deals we are going to see in 2008 (if any), but National City Bank has extended their 4-year CD 5.00% rate special another few weeks.

National City Bank is a large multi-state bank (branches located in Indiana, Illinois, Kentucky, Michigan, Missouri, Ohio, Pennsylvania and Wisconsin) which has been offering deposit products consistently among the highest yielding in the nation . National City Bank is running a promotion until at least March 22, 2008 in which they are offering three different deposit rate specials as listed below:

Certificate of Deposit Special

Choose your term: 5.00% 48-month CD or 4.00% 24-month CD

Minimum Deposit: $10,000

To qualify for this offer, you must have an existing National City personal checking or savings account (except CDs and IRAs), or open a new personal checking account (except Free Checking) or a Money Market Savings account with $1,500

For more information or to apply call (800) 622-4036 or visit nationalcity.com.

Money Market Savings Special

3.05% Promotional APY guaranteed for 180 days

Offer good for balances of $5,000 or more (with funds not currently on deposit at National City)
Offer good for customers with an existing National City personal checking account or open a new personal checking account (except Free Checking) with a minimum of $1,500.
Easy access to your money at ATMs, online, by phone, or at any of our convenient locations.

For more information or to apply call (800) 622-4036 or visit nationalcity.com.

For more online bank rates visit money-rates.com.

A number of banks including Acacia Federal Savings Bank, Greystone Bank, National City Bank, iGObanking, KeyDirect, and Capital One Bank have increased their longer-term CD rates. Either the banks are responding to the higher yield on longer term Treasuries or are trying to become more competitive in bringing in more deposits, but either way savings investors can lock-in higher rates than they could one week ago. Rates available today include:

2-year CD rates as high as 4.10% APY

2.5-year CD rates as high as 4.00% APY

3-year CD rates as high as 4.01% APY

4-year CD rates as high as 5.00% APY

5-year CD rates as high as 4.25% APY

7-year CD rates as high as 5.05% APY

10-year CD rates as high as 5.05% APY

There have been a lot of questions about the Who? What? Where? and Why? of the government’s stimulus package payment to US taxpayers recently approved by Congress. Here are all the answers provided directly by the Internal Revenue Service on their website:

Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million individuals. The stimulus payments will go out through the late spring and summer.

The vast majority of Americans who qualify for an economic stimulus payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year. They will not have to complete applications, file any extra forms or call the Internal Revenue Service to request the payment, which is automatic. The IRS will determine eligibility, figure the amount and issue the payment.

Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns. Taxpayers who have already filed with direct deposit won’t need to do anything else to receive the stimulus payment. For taxpayers who haven’t filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments.

Basic Eligibility

The IRS will use the 2007 tax return to determine eligibility and calculate the basic amount of the payment. In most cases, the payment will equal the amount of tax liability on the return with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return) and a minimum of $300 for individuals ($600 for taxpayers who file a joint return).

Even those who have little or no tax liability may qualify for a minimum payment of $300 ($600 if filing a joint return) if their tax return reflects $3,000 or more in qualifying income. For the purpose of the stimulus payments, qualifying income consists of earned income such as wages and net self-employment income as well as Social Security or certain Railroad Retirement benefits and veterans disability compensation, pension or survivors benefits received from the Department of Veterans Affairs in 2007. However, Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.

Low-income workers who have earned income above $3,000 but do not have a regular filing requirement must file a 2007 tax return to receive the minimum stimulus payment. Similarly, Social Security recipients, certain Railroad retirees, and those who receive the veterans benefits mentioned above must file a 2007 return in order to notify the IRS of their qualifying income.

The IRS emphasized that people with no filing requirement who turn in a tax return to qualify for the economic stimulus payment will not get a tax bill. People in this category will not owe money because of the stimulus payment.

Additional Payments for Parents and Others with Qualifying Children

Parents and anyone else eligible for a stimulus payment will also receive an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number.

Limitation

To be eligible for a stimulus payment, taxpayers must have valid Social Security numbers. Anyone who does not have a valid Social Security number, including those who file using an Individual Taxpayer Identification Number (ITIN), an Adoption Taxpayer Identification Number (ATIN) or any other identification number issued by the IRS is not eligible for this payment.

Both individuals listed on a married filing jointly return must have valid Social Security numbers to qualify for a stimulus payment.

Eligibility for the stimulus payment is subject to maximum income limits. The payment, including the basic amount and the amount for qualifying children, will be reduced by 5 percent of the amount of income in excess of $75,000 for individuals and $150,000 for those with a Married Filing Jointly filing status.

Individuals who pay no tax and who have less than $3,000 of qualifying income will not be eligible for the stimulus payment.

Wachovia Bank has a savings program called Way2Save that links a Wachovia checking account to a Way2Save account and credits the account $1 for each check card purchase, automatic debits from your checking account, and online bill payments. To build balances even faster, you can set up an automatic transfer, up to $100 each month, from your checking to your Way2Save account. During the first 3 years of the Program, a special interest rate and Annual Percentage Yield (APY) will be offered and will be: 5.00% APY Year 1 and 2.00% APY Years 2 and 3. The APY on your Way2Save account will change 12 months from the date the first transfer was credited to your account and each 12 months thereafter, during the first 3 years. At the start of year 4, the APY will be the same as the Premium Savings rate in effect at that time. The Way2Save account is a variable-rate account and the rate is subject to change.

Click here to view the Way2Save Calculator and see how much this program can save you. Wachovia Bank has branch offices in over 15 states where the account can be opened or apply online.

Find more Savings Account rates here.
Find more Online Bank Deals here.

The best sites for finding bank money market rates are those sites that keep it simple and include comprehensive up-to-date information. Surprisingly, Bankrate.com fails both test miserably. Bankrate.com forces the user to go through menu after menu to finally find a money market rate table that is not sorted by the highest rates and worse of all does not include all the banks listed on other sites. Sites where a savings investor can find a high yielding bank money market account include:

Money-rates.com

Bankcd.com

Bankaholic.com

Other sites that are not as comprehensive but with good information on bank money market rates include:

Emoneycentral.com

Gotalkmoney.com

Banx.com

Post your comments and revisions to this below.

Wells Fargo & Company announced that it has taken a $39 million loss on Structured Investment Vehicles (SIVs) which were used in the portfolios of a number of their money funds. The $39 million is not devastating to company who holds over $106 billion in money market mutual funds, but is another example of money fund managers extending their risk tolerance to grab extra yield in an investment that most investors consider completely safe.

Investors have relied on the historically-stable $1 net asset value that all money market mutual funds quote without much thought of their mutual fund company “breaking the buck”. However, when companies like Well Fargo, Bank of America, and State Street Boston are forced to infuse cash into their money funds to stablize the returns then investors need to consider just who is standing behind the $1 price on their money fund as the higher yielding money funds may hold riskier more volatile holdings than those funds yielding less. Fund managers have a lot more discretion than investors may expect in a conservative money fund and have been tempted by the lure of higher yields into mortgage securities and complex investments like the SIVs that have lost value and liquidity. With interest rates falling and competition for cash always intense, fund managers may continue this trend despite the negative publicity generated by companies who have propped up their money funds. Investors with a money fund backed by a large financially strong company may be in a better position to expect their mutual fund to hold a $1 net asset value through any financial catastrophe. The four funds listed below are from large respected companies:

AARP Money Market Fund (3.43% effective yield)

Fidelity Money Market Fund (3.47% effective yield)

TIAA-CREF Money Market Fund (3.65% effective yield)

Vanguard Money Market Fund (3.77% effective yield)

These four companies are not at the top of a list of the highest yielding money funds, but AARP, Fidelity, TIAA-CREF, and Vanguard are four blue-chip companies very likely to stand behind their money funds in the event of financial turmoil.

Government bond funds are a favorite of investors due to the safety of the underlying holdings which are primarily securities issued by the Treasury Department or government-sponsored entities. While normal bond fund managers can buy riskier lower-rated bonds to boost yields, the government bond fund manager is heavily restricted to the type of holdings in their funds. Interest-rate risk is always a factor with bond funds, but in general the shorter the duration of the holdings in the fund the less volatile the returns of the fund will be. Below are some funds which have been identified by Morningstar as out-performing funds:

Short-term Government Bond Funds

Funds that primarily invest in U.S. government securities which may include Treasury bills, notes, bonds, mortgage-backed securities issued by government lending agencies and other Treasury securities with maturies less than five years.

JP Morgan Treasury and Agency Select (OMBAX) - yield 4.51%, YTD return 2.34%, 2007 return 6.56%, expense ratio 0.65%, minimum investment $10,000
Vanguard Short Term Treasury (VFISX) - yield 4.11%, YTD return 2.63%, 2007 return 7.62%, expense ratio 0.26%, minimum investment $3,000
Vanguard Short Term Treasury (VSGBX) - yield 4.34%, YTD return 2.11%, expense ratio 0.20%, minimum investment $3,000
Fidelity Spartan Short (FSBIX) - yield 4.17%, holds 97% securities rated AAA primarily US Treasuries, average maturity of holdings 2.40 years, 2007 return 7.71%, minimum investment $10,000

Intermediate-term Government Bond Funds

Funds that primarily invest in U.S. government securities which may include Treasury bills, notes, bonds, mortgage-backed securities issued by government lending agencies and other Treasury securities with maturities typically between five and ten years.

Morgan Stanley U.S. Government (USGAX) - yield 4.48%, holds 100% securities rated AAA primarily U.S. Treasuries and government mortgages securities, average maturity of holdings 6.30 years, 2007 return 6.50%, minimum investment $1,000
Vanguard GNMA (VFIIX) - yield 5.09%, YTD return 1.50%, expense ratio 0.21%, minimum investment $3,000
Fidelity Government Income (FGOVX) - yield 4.34%, YTD return 2.11%, expense ratio 0.20%, minimum investment $3,000

Long-term Government Bond Funds

Funds that primarily invest in U.S. government securities which may include Treasury bills, notes, bonds, mortgage-backed securities issued by government lending agencies and other Treasury securities with maturities typically ten years and longer.

Vanguard Long-Term US Treasury (VUSTX) - yield 4.50%, YTD return 1.58%, expense ratio 0.26%, minimum investment $3,000
T Rowe Price US Treasury Long Term (PRULX) - yield 4.28%, YTD return 1.85%, expense ratio 0.55%, minimum investment $2,500

Another type of fund which has performed well in the last year are inflation-protected funds. These funds are heavily invested in Treasury Department securities and are designed to match the rate of inflation in the US economy.

Inflation-Protection Funds

Fund which specifically target offering a return that exceeds or matches inflation are available for investors who might need inflation protection in their portfolio.

Franklin Real Return A (FRRAX) - yield 3.81%, 2007 return 9.83%, $1,000 minimum investment
DWS Inflation Protected Plus (TIPIX) - yield 4.71%, 2007 return 11.57%, $1,000,000 minimum investment
State Farm Interim (SFITX) - yield 4.39%, 2007 return 7.41%, $250 minimum investment
Hartford Inflation Plus A (HIPAX) - yield 3.83%, 2007 return 11.58%, $1,000 minimum investment
Schwab Inflation Protected Select (SWRSX) - yield 4.26%, YTD return 6.90%, $50,000 minimum investment

Fed Chairman Ben Bernanke, a long-time proponent of inflation-targeting, has set a specific inflation target of 1.5% to 2% over three years in a semi-annual FOMC report to Congress. Bernanke and the Fed were thought to have set a target as low as 1% to 2% so the “new” target range gives the Fed a little more leeway on the side of interest rate cuts in the risk of inflation vs the risk of growth debate. The subtle announcement by the Fed of a specific inflation target has been overshadowed by the release of 4th quarter GDP which shows the US economy growing at a 0.6% pace. Overall the economy grew at a pace of 2.2% in 2007 vs the 2.6% rate in 2006. The language of recent statements by Fed officials indicates that the 50-point rate cuts expected at the March meeting of the FOMC can still be expected, although Fed watchers are now predicting and trading on Fed Funds futures contracts at the Chicago Board of Trade is now indicating an expected floor of 2.00% on the Fed Funds rate (currently at 3.00%) before the Fed reverses its trend of lowering interest rates.

Investors looking to park their cash during this cycle of economic slowdown and low interest rates can expect to find more diminishing rates on bond funds, money markets, money funds, CDs, savings accounts, and other fixed-income investments. For the savings-oriented investor, there are many bank deals posted at money-rates.com where investors who open an online bank account can still find 4.00%, 5.00%, and even 6.00% rates and the rates offered on US Savings Bonds have become more attractive when compared to US Treasury yields.

1 USD = IRR (9,257.888721)
1 USD = IRR (9,257.888721)
As of Friday, January 11, 2008…<br>1 U.S. Dollar (USD) = 9,257.888721 Iranian Rial (IRR)<br><br>Call 1-877-627-4817 for ‘LIVE’ assistance.<br><br>Source: IMF<br><br>Aggregated and published by CurrencySource.com<br>’Rated #1 in Currency Exchange’