Rallying bank stocks, strong dividend bets and grab 2% interest while you can: What you need to know in investing this week

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Rallying bank stocks, strong dividend bets and grab 2% interest while you can: What you need to know in investing this week (subscribers) GlobeInvestor

The pandemic has turned a 2-per-cent return from an online savings account into a financial coup,. There is no better cash option for the everyday person. You get inflation-beating returns with no risk and full liquidity in that you can get your money any time. In fact, 2 per cent is so good it probably won’t last long. Stop looking for better and grab it up while you can.comparing safe parking spots such as money market funds, savings account mutual funds and exchange-traded funds.

The attractive aspect here is that most bank stocks have a lot of room to rise before they fully recover. And let’s not forget about those big dividends: The average yield is about 5 per cent. But, clearly, any bet on bank stocks rests on a number of optimistic assumptions about the economy – and the banks’ exposure to it. Loan losses are key here.

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