Should You Buy Floating-Rate Notes?
Filed under: Investing, Ford Motor Co, General Electric , Caterpillar
The yields offered by banks are laughable. Checking and money market accounts are yielding roughly 0.50% per year. Five-year CDs are slightly higher at 1.50% — still, not very impressive.
This situation got several well-known companies thinking, “Let’s sell debt to consumers who recognize and trust our brand, and offer interest rates on it that are slightly higher than these CDs and money markets.”
Thus, the “floating-rate demand note” was born.
For a minimum investment (some as small as…
Should You Buy Floating-Rate Notes? originally appeared on DailyFinance.com on 2012-08-24T17:00:00Z.
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