The Uhaul Investors Club has been raising their rates for the last number of months–but they are always behind. Some of us in the club have been dragging our feet on reinvestment of cash in our accounts–at least I know I have been waiting for a better interest rate.
It is kind of funny that one can get almost 4% in a 2 year Tbill, but Uhaul is only paying 3.70% (the new rate), but they have no problem at all selling everything they offer.
The new rates are here–these are 20 to 30 basis points above the previous rate and should hit their website in the next week
For a number of years when interest rates were near zero my wife and I dedicated ‘new’ money to Uhaul–but have not funded this is a while, but our original money remains in the accounts. In the name of diversification I will kept the money there for now.
7 thoughts on “UHaul Investors Club to Raise Rates”
I put $10k in this several years ago when they offered 5-8% yields on mortgage like terms. I continue to reinvest the earnings but never add new principal. For me it’s just a diversification vehicle like many others.
Why is this better than a 4.35% two year CD?
Unlike CDs, Uhaul investments do not keep the initial principal until maturity. The quarterly payments include interest and a portion of the principal. For a two year that means 1/8th principal returned every quarter. Uhaul may be a better choice for investors more inclined to cash flow.
Just one more arrow in the quiver JB–not better or worse necessarily.
Thanks Tim. I have actually been draining the cash flow from my account the past year in favor of other higher rate options. But, the new 2 year rate is acceptable to me so I will stop doing that. I really do like the idea that payments are amortized over the life of the loan. Plus, as you mentioned UIC is a good way to diversify investment funds.
Hi Gary–I see they have some notes available now at the new rates–much sooner than I expected.
Yes, indeed. I reinvested available cash this morning in the 2 year note at 3.70%.