FOR IMMEDIATE RELEASE
In the wake of the ECB’s rate cut, Europeans may soon be paying banks to hold their money. How can U.S. investors protect their cash against eroding interest rates?
New York, NY, June 6, 2014 — The European Central Bank’s announcement yesterday that it will lower interest rates in the Eurozone and charge banks to park their funds in Frankfurt overnight brings renewed attention to the problem of bank depositors earning little interest on their savings accounts.
“Bank depositors are already suffering from ultra-low interest rates on savings accounts. Many people are fundamentally uncomfortable with the idea of having to pay to keep their money in the bank,” says Gary E. Zimmerman, chief executive of Six Trees Capital LLC, the company behind MaxMyInterest.com. “With today’s near-zero interest rates on offer from most banks, the real return on cash is often negative, even in the U.S.”
The ECB’s move aims to spur banks to lend more to European companies and individuals. By cutting its deposit rate to negative 0.1%, the central bank hopes to boost economic growth in the region, still recovering from a deep recession following the global financial crisis.
As the world emerges from financial uncertainty, central banks signal that low interest rates will continue. The U.S. Federal Reserve is ending its quantitative easing program, but rates are expected to rise slowly over the next few years, barring a sharp inflation spike.
This is not good news for bank depositors.
Fortunately, depositors have options. In the U.S., online banks have lower operating costs than traditional banks, enabling them to offer higher interest rates.
MaxMyInterest.com offers an automated system to help depositors benefit from these higher rates. Max members currently earn an average of 0.87% on their cash (0.79% net of fees), significantly more than traditional bank accounts or money market funds.
Compounding is critical for investment portfolios. Earning an extra 0.60% to 0.80% annually can profoundly impact wealth accumulation. Max members could potentially earn tens or hundreds of thousands of additional dollars in interest over their investment horizon.
Periodically reallocating cash to higher-yielding savings accounts while maintaining full FDIC insurance coverage can enhance returns without additional risk. Max automates this complex process, enabling depositors to continuously optimize cash effortlessly.
About MaxMyInterest
MaxMyInterest is an automated online solution that helps depositors earn more on their cash balances. Max’s proprietary technology dynamically allocates cash to online banks offering the highest interest rates, within FDIC insurance limits. Max is not a bank and does not provide investment advice.
For more information, please visit MaxMyInterest.com.
About Six Trees Capital LLC
Six Trees Capital LLC develops technology designed to improve the financial system. Founded by Gary E. Zimmerman, a former mergers and acquisitions investment banker and advisor to sovereign wealth funds managing more than $5 trillion, the company is supported by sophisticated angel investors. Its advisory board includes experts from Harvard Business School, IBM, and leading computer security firms. Six Trees Capital is based in New York City.
MEDIA CONTACT: press@sixtreescapital.com