Fed slashes rates - Jan. 22, 2008

Fed slashes rates - Jan. 22, 2008

Today, in response to growing concern that the United States' economy is heading towards a recession, the Federal Reserve lowered 2 key interest rates, the federal funds rate and the discount rate, both by three-quarters of a point. This is the first major cut made by the Federal Reserve for the year of 2008.

The interest rate cuts did manage to stave off a large drop in the U.S. Stock Market, where the Dow Jones Industrial dropped 400 points before the rate cuts were announced. The rate cuts will not be enough for the U.S. economy to recover. However, in combination with the propose tax rebate and other initiatives called by President George Bush to revitalize the economy might be enough to save it.

Great Online Savings and CD Offers

The last quarter of 2007 has been particular rough on the U.S. economy. Several banks have lowered their interest rates on their products, including savings accounts and certificates of deposit (CD). For example, in the beginning of 2007, HSBC Bank offered their online savings account with an interest rage of 5.05%. After the mortgage market crash, the rate dropped to 4.50% and continued to fall to today's 4.25%. The Federal Treasury lowered interests rates but it did little to alleviate fears of a slowing economy. However, not all is lost. There are a number of decent investments.

Washington Mutual is still offering an online savings account with a 4.75% interest; however, you need to open a free checking account as well. The minimum deposit is $1.00. Washington Mutual is also offering an online 6 months CD with an interest rate of 5.10%. Minimum deposit is $1,000.

Countrywide Bank is also offering an online savings account with an interest rate of 5.25%; however, to get this rate there is a $10,000 minimum deposit. Countrywide Bank is also offering a 6 months CD with an interest rate of 5.45% with a minimum deposit of $10,000.

ING Direct is offering an online savings account with a more modest interest rate of 4.10%. There is a minimum deposit of $1.00. In addition, it is offering a 6 month CD with an interest rate of 4.70%.

HSBC Bank Credit Card Anyone?

Well, the holidays are over and you are reeling from the small fortune you spent for holiday gifts. But, don’t panic. There is some good news on the horizon. HSBC Bank is offering a number of credit cards with a special 0% introductory APR for balance transfers and purchases for 12 months. In addition, during this introductory promotional period, there are no fees for balance transfers. And, of course, there are no annual fees. If you have outstanding balances on your current cards, why don’t you transfer them to a new HSBC credit card? You can avoid huge finance fees and, with the money, you save you can deposit it in to your interest bearing bank account(s). Personally, I calculate the total for my balance transfer then invest that amount in to a 1 year high-yield CD. At the end of the year, when the CD matures, I use the principle balance to pay off my HSBC credit card and I get to keep the interest. If these aren’t enough reasons to go ahead and apply for a HSBC credit card, here are some additional benefits:

• Free online Bill Pay

• Purchase Protection

• Master RoadAssist® Roadside Service (1-800-MC-ASSIST)

• MasterRental® Insurance Coverage

• MasterCard Travel Assistance Services

• 24-hour toll-free assistance with lost or stolen cards, emergency card replacement and emergency cash advances

Wal-Mart fires warning shots over Black Friday sales price leaks

Wal-Mart fires warning shots over Black Friday sales price leaks

Many of you are familiar with Black Friday, the Friday after Thanksgiving, which starts holiday shopping. Between Black Friday and Christmas, retailers make 50% of their sales for the year during this period. Typically, retailers slash prices to entice buyers to purchase items from their stores. However, sale prices are not revealed until Black Friday. Each year, certain individuals manage to get their hands on these sale prices and post them on various websites. Retailers frown upon the early release of their sales. Up until now, retailers rarely have pursue legal actions against those suspected of publishing their sales. However, this year, it looks like retailers have lost their patience over the matter and have made taken serious steps to penalize anyone who published their sales before companies' release date. Wal-Mart is leading the charge. Wal-Mart contends that their sales circulars are copy protected, which is a new twist. Read the full article for more details.

$100 Bonus for Opening Up Citibank Ultimate Savings Account

$100 Bonus for Citibank Ultimate Savings Account

Direct saving accounts seem to be all the rage as of late. Direct accounts are those which are maintained by the customer using the Internet and ATM machines. There is no teller services and no statements by mail. It is a win win situation for both the banks and its customers. The bank saves money by providing less tellers for personal services which allows the banks to offer a higher interest rate. Citibank offers a 4.65% APR for its Ultimate Savings accounts. Now, as an added incentive, Citibank is offering a $100 signing bonus to all "New" account holders. There is no minimum opening balance! This offer ends on 8/31/2007. Customers will receive have $100 added to their accounts 90 days after the account has been opened. The account must be in good standing during this period. Who doesn't like free money?

High Yield Savings Accounts

Which Online High-Yield Savings Account is Best? ∞ Get Rich Slowly

Personally, I wouldn't mind a little more cash. There are a number of banks which are offering a high yield savings account. These banks are able to offer higher yields because the saving accounts are direct accounts. Everything is done electronic. Instead of using a bank teller, you can deposit, withdrawal and several other types of transaction via the Internet, ATM and telephone. The bank saves money and passes on these savings on to the customer. In fact, HSBC Direct is offering a promotional 6.00% APR from now to April 27th 2007.