MoneyRates Blog
Blue Chip Financial Stocks vs Bank Savings Accounts
By Clark Schultz | Money-Rates Columnist
It was not that long ago that the bluest of the blue chip stocks including financial services giants like AIG, Citigroup, Bank of America, Capital One, Wells Fargo, and American Express were must-have stocks for any portfolio. A blue-chip financial stock meant stability and long-term growth. Even the dividend yields of the blue-chippers would consistently beat bank deposit rates. Even with the demise of major financial companies like Lehman Brothers and Washington Mutual Bank in the fall, some experts held out hope for the financial sector. That hope seems to have faded completely. Take a look at where these major financial stocks stand compared to a year ago:
American International Group (AIG) trading at 0.36 which is -99.3% from the stock’s 52-week high
Citigroup (C) trading at 1.01 which is -96.3% from the stock’s 52- week high
Bank of America (BAC) trading at 3.22 which is -92.6% from the stock’s 52-week high
Capital One Financial (COF) trading at 8.74 which is -86.2% from the stock’s 52-week high
Wells Fargo & Company (WFC) trading at 8.24 which is -81.6% from the stock’s 52-week high
American Express Company (AXP) trading at 10.41 which is -80.2% from the stock’s 52-week high
A year ago you could find the highest rates on bank savings accounts listed at MoneyRates.com paying rates of 5.00% and better. While that is a fantastic return in comparision to the financial stocks listed above, it also beats all the Lipper Indexes for stocks and bonds for the last year. Simply said, bank savings accounts were one of the best places to have placed your money for the last year.
Financial advisors can offer many investment choices and set-up complex blended portfolios. But they can’t offer the safety of bank deposits, United States Treasury products, and some money funds which have the full backing of the United State government. If you are one tired of the volatility in the stock and bond markets, keep checking MoneyRates.com to track the banks offering the best rates on money market accounts, savings accounts, checking accounts and to find the highest CD rates. A 3% rate never sounded so good.
- Share this article with:
Delicious
Digg
Tip'd
StumbleUpon
2 Comments »
-
March 5, 2009
Aaron Wakling says:
I’ve been reading along for a while now. I just wanted to drop you a comment to say keep up the good work.
-
March 9, 2009
Angelo_Frank says:
Forty years ago I read a paperback about saving money. The author pointed out that one should have no more than 20 percent of one’s retirement funds in equities, the remainder in FDIC insured savings products such as CDs, MMAs, and savings accounts. I have kept all my funds in laddered CDs and other FDIC insured products over the years, and am able to sleep well at night, knowing that I have not lost half my money in the current bear market for equities. I may be a turtle at saving money, but it sure has worked out for the better.
