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Investment returns -- keeping up with the Fed

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The Federal Reserve has hiked its Target Fed Funds Rate 14 times since July 2004.The Fed Funds Rate now stands at 4.50 percent, compared to just 1 percent before the rate hikes began. Many economists are predicting additional rate hikes in the future.

The Federal Reserve has hiked its Target Fed Funds Rate 14 times since July 2004.The Fed Funds Rate now stands at 4.50 percent.

Short-term yields for nearly all types of investments are driven by changes the target Fed Funds rate, but that doesn't mean investors have benefited from this increase in rate levels.

Investors who had placed their money in bonds and other "fixed-income" securities have seen the value of their investments decline (as interest rates rise, bond prices go down).

In fact, very few investments have performed well over this period of time. But, there is a place where your investment returns can keep up with the Fed rate hikes.

The place to stash your cash is Pacific Trust Bank's Indexed Money Market Account. It pays an annual percentage yield (APY), that's indexed to market rates and is adjusted weekly.

A great rate -- and they're not teasing!

The Indexed Money Market Account is a money market deposit account (or MMDA, an overnight savings account).

Other financial institutions may advertise a high rate of return on their money market account, but such offers are usually designed to get your business with a limited-time "Teaser Rate." After the promotion period ends, those others usually pay much lower rates that are arbitrarily set by the bank's management.

At Pacific Trust Bank, your Indexed Money Market Account will always be earning a highly competitive yield. That's because the account's Annual Percentage Yield is "indexed."

Every week, its APY resets to equal the most recent three-month U.S. Treasury Bill auction rate.

The account has no service charges and no early withdrawal penalties. The minimum required to open this account and earn the disclosed annual percentage yield is $25,000.

With its high earnings rates, immediate funds availability and FDIC insurance safety, Pacific Trust's Indexed Money Market Account is place to stash your cash.


Submitted by Pacific Trust Bank

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