Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/18/84; site brl-tgr.ARPA Path: utzoo!linus!philabs!prls!amdimage!amdcad!amd!vecpyr!lll-crg!gymble!umcp-cs!seismo!brl-tgr!wmartin From: wmartin@brl-tgr.ARPA (Will Martin ) Newsgroups: net.invest Subject: Re: CD Advice Message-ID: <1718@brl-tgr.ARPA> Date: Wed, 25-Sep-85 15:19:32 EDT Article-I.D.: brl-tgr.1718 Posted: Wed Sep 25 15:19:32 1985 Date-Received: Tue, 1-Oct-85 07:09:01 EDT References: <10454@ucbvax.ARPA> Reply-To: wmartin@brl-bmd.UUCP Organization: USAMC ALMSA, St. Louis, MO Lines: 27 I, too, recently had a CD mature (happened to be an IRA CD, but that really doesn't make any difference). It is insulting what low rates are available these days, if you consider what the banks and S&L's are still *charging* people who are borrowing money! Guess it's time for my perennial net.invest question: Where can I get an investment vehicle that has the safety and convenience of a bank CD (I really do want to be able to forget about it -- I don't want to follow markets and make decisions), but that will PAY the prime rate as its interest return? Considering the spread between what most borrowers have to pay for money and the "official" prime rate, there is *plenty* of room for a bank or investment organization to pay "prime" as their dividend on incoming funds while charging regular market rates for loaned money, or getting the far-higher-than-prime returns that certain specific investments will provide. They can make their overhead and profit out of that spread. Even if that spread is only a few percent, if the amount is large enough that few percent can add up to quite a hefty chunk of money, quite enough to pay the managers and staff, plus overhead. Also, I keep reading that supermarkets operate on a 1% or 2% margin, and they certainly make enough money to keep going... Will Martin UUCP/USENET: seismo!brl-bmd!wmartin or ARPA/MILNET: wmartin@almsa-1.ARPA