What is the SAFEST Investment in the World?

After the recent financial crisis, many people begin to think that no investment is safe. Luckily, this is not quite true. Let us review the lowest risk options available to an individual investor.

At the top of the list are US bank accounts. The cash in your bank account is insured by FDIC, and FDIC itself is backed by full faith and credit of the US federal government. The chance of the US government defaulting on its obligations is really tiny. Remember, however, that FDIC does not insure the full balance in your account. Normally the insurance limit is $100,000 per bank, so if you have $300,000, you should spread it over 3 accounts at 3 different banks. Right now, this limit is temporarily raised to $250,000.

The second place is taken by money market funds. Money market funds are not insured by the government, but they are very carefully monitored by regulators and they invest in an extremely conservative way. As a result, in their nearly 40-year history, there have been only a couple cases where investors lost their principal. Even then, the losses didn’t exceed 3 cents on the dollar. You can freely withdraw money from a money market fund at any time.

The third place is taken by US Treasury bonds. This security is also backed by the US federal government. There is some risk, however. If you buy a 10-year bond today for $1000, you may find that its price falls to $800 a year from now. Sure, after 10 years, you will get the full $1000 from the government. But the market price of the bond depends on many factors that change quite quickly. Therefore, if you may need your money soon, this investment isn’t as safe as it might look. The shorter-duration Treasury securities (such as Treasury bills) are as safe as bank accounts, since their price doesn’t change much.

Now one might ask, how safe is gold? Many people think gold is safer than anything else. If the unthinkable happens, such as the US government collapses and the country descends into anarchy, neither bank accounts nor cash currency would hold much value. But gold is likely to still be valuable; in fact, its value might even go up, since no other convenient method of payment would be available.

However, think about a different scenario. You buy some gold in 1980 for about $650 an ounce. Then you watch your savings evaporate, as its price falls to $300 just two years later. Referring to the data below from goldprice.org, you can see the volatility of the past 36 years. How safe is that? After all, if you only think about the “end of the world” scenario, gold is great. But if you consider the more realistic future, it turns out gold is as risky as stocks.

So, the final answer is that the safest investment available today is an FDIC-insured bank account. Just remember to watch the insurance limit, and spread your funds across several banks if needed.

Austin Personal Loan Rates

Austin hosts more music venues per capita than any other U.S. city and you have been eyeing a spot on 6th street to add your flair to the mix. With Austin Banking Rates you can locate a decent Austin loan rate to get the resources together to finance the pursuit of dream. You already have solid business plan, music connections from your years in Nashville, and with a place of your own you will make your venue live and flourish.

With Austin Banking Rates you can quickly find bank rate information from the entire local Austin banking community. Whether you need to find low rate loans in Austin to finance your club or just need some spare cash to redecorate your house, we can help.

Your Credit and Personal Loans

Creditors like to see a variety of different types of accounts in your credit history. This includes revolving credit, such as credit cards and home equity lines of credit, installment loans, such as auto loans, personal loans and student loans, and mortgages. However, having too many personal loans could negatively impact your credit. Before you apply for a Austin personal loan, you should get a free credit report and learn your credit score.

Getting a personal loan can help you establish your credit. Personal loan rates are typically based on the credit worthiness of the borrower, as well as the credit worthiness of any co-signer. The better the credit score the lower the personal loan rates. Banks and lenders look at many things to approve an applicant, or approve a person looking to consolidate their loans, but in order to get the lower loan rates, a borrower should either have very strong credit, or at least find a co-signer with great credit.

Types of Personal Loans

No matter what type of personal loan you’re looking for, Austin Banking Rates can help connect you with a Austin lender with the best rates.

Personal loans are a quick and easy way for people needing cash to borrow money. These types of loans tend to be unsecured, meaning that no collateral is needed to secure the cash advancement. To qualify for a personal loan, individuals need to provide their full name, social security number and prove their income. Once approved, in just a matter of hours money can be transferred into a personal account.

Types of personal loans:

• Secured and unsecured personal loans
• Short term personal loans
• Payday or cash advance loans

If you do not understand the ins and outs of personal loans, Austin Banking Rates can help you feel confident with current rate information, explanations of the different types of personal loans and access to many different lenders. You are assured to get the best Austin personal loan rates.

Best Personal Loan Rates in Austin

If you have good credit, you will be able to qualify for a low personal loan rate. Short term loans tend to have higher rates, as do payday loans or cash advances. For the best personal loan rates in Austin, consider getting a loan secured with a vehicle or property.

Most personal loans are granted as unsecured loans. Borrowers do not necessarily need to have the best credit or even any type of collateral as that is not the primary concern for the providers of these types of loans. Unsecured loans are provided more on good faith and what lenders need to provide are their name, social security and income verification. No collateral is needed so if the loan goes into default, the lender will not get anything in return. Higher rates are the price to pay for not having collateral or a co-signer on these types of loans.

Using Personal Loans to Consolidate Debt

Personal loans are also excellent tools for debt consolidation. As opposed to having multiple debts on a variety of credit or store charge cards with a variety of APR rates and payment deadlines, a personal loan can make the process easier to manage. By taking out a personal loan, all the debt can be paid off and that one debt can be easily managed. Many times, a personal loan rate can be lower than a credit card interest rate, making the personal loan interest rate an advantage.

If someone chooses a secured personal loan to consolidate their debt, they also may be able to take advantage of a longer repayment schedule with more flexible terms and conditions than their existing debt holder.