By: Dr K C Gupta, YBB Personal Finance

SENTIMENTS

AAII Bull-Bear Spread -4.8% (below average)
$NYA50R, NYSE %Above 50-dMA 71.16% (overbought)
$SPXA50R, SP500 %Above 50-dMA 65.20% (positive)

ICI Fund Allocations (Cumulative), 7/31/25
OEFs & ETFs: Stocks 61.23%, Hybrids 4.14%, Bonds 17.51%, M-Mkt 17.12%

INTEREST RATES

CME FedWatch
Cycle peak 5.25-5.50%
Current 4.25-4.50%
FOMC 9/17/25+ cut
FOMC 10/29/25+ cut

Treasury

T-Bills 3-mo yield 4.23%, 1-yr 3.83%; T-Notes 2-yr 3.59%, 5-yr 3.68%, 10-yr 4.23%; T-Bonds 30-yr 4.92%;
TIPS/Real yields 5-yr 1.21%, 10-yr 1.82%, 30-yr 2.62%
FRNs Index 4.143%
US Savings I-Bonds rate from 5/1/25 – 10/31/25 is 3.98% (previous 3.11%); the fixed rate is 1.10%, the semiannual inflation is 1.43%.

For current banking rates, see 
www.depositaccounts.com/


Stable-Value (SV) Rates, 9/1/25
TIAA Traditional Annuity (Accumulation) Rates
Restricted RC 5.00%, RA 4.75%
Flexible RCP 4.25%, SRA 4.00%, IRA-101110+ 4.00%
TSP G Fund pending% (previous 4.375%)

Weekly ETFs INDA -2.99%, EPI -3.53%, INDH -2.32%, SPY -0.04%

The data above are as of Sunday preceding the publication date.

ECONOMY

US 50% tariffs on India have kicked in. US-India trade negotiations remain stalled. Reports are that PM MODI has avoided taking calls from President TRUMP. A US federal appeals court ruled that most tariffs are illegal as emergency measures. A personal friend of President Trump, GOR, has been named ambassador to India.
Meanwhile, PM Modi visited Japan August 29-30 ahead of the SCO meeting in China August 31-September 1. Russian President PUTIN is to attend an India-Russia trade conference/ show in India in December. India is getting ready for rotating BRICS presidency in 2026.

IT/TECH

IT company Wipro/WIT is buying multi-platform audio specialist Harman’s/Samsung-Electronics DTS (Digital Transformation Solutions) business. The DTS unit specializes in analog-digital transformations enhanced with AI.

SPECIAL TOPICS

Mizuho (Japan) is buying a 70% stake in Indian broker Avendus – 60% stake from US KKR & the rest from other early investors.

Japanese SMBC (part of Sumitomo Mitsui Financial Group) is buying 24.99% stake (includes 13.19% from SBI, 6.81% from other banks) in YES BANK & will name 2 directors. SBI will retain 10.8% stake.

ARE UTMAs STILL RELEVANT?

UTMA (Uniform Transfer to Minors Act) accounts at brokers, funds, banks are custodial accounts with minors as beneficiaries. Minor’s Social Security number is used to establish them & a parent (or another family member) may serve as custodian/ trustee. A successor should also be named as the other parent is not presumed to be the successor unless so named. Funds can be used for the benefit of beneficiary beyond the normal parental support for the dependent minor.

These offer limited tax advantages as earnings up to a certain level can use minors’ deductions & lower tax rates. They are taxed at parent’s tax rate beyond those levels (Kiddie Tax rules).

Contributions up to the annual gift exclusion can be made easily. Excess contributions require filing of gift tax form 709 (to keeps track of excess gifts that will reduce lifetime gift exclusion at death), but importantly, no gift taxes are due.

The UTMA beneficiary cannot be changed. UTMA assets are considered beneficiary assets for financial aid purposes. Once the beneficiary reaches the age of majority (18-21-25; varies by state), then the assets belong to the beneficiary & he/ she may use the funds for any purpose whatsoever; beneficiary also gains some say-so at age 14.

Some funds/ brokers have in-house procedures for these ownership conversions. It is a mistake for the custodian to delay this conversion by hiding the UTMA from beneficiary &/or being nonresponsive to fund/ brokers prompts.

At one time, UTMA were very popular for college savings but now the state sponsored 529s are more effective – qualified college expenses not taxed; possible state tax incentives; parental 529 assets considered parents’ assets for financial aid purposes; grandparent 529 now have favorable treatments for financial aid; better control over funds; some excess funds can be transferred to beneficiary Roth IRA.

However, both 529 & UTMA may be used with different objectives. The UTMA assets can also be transferred to a specially titled 529 (reverse not allowed), but its beneficiary cannot be changed as for regular 529.

There are also savings accounts at banks with joint parent & minor ownership, but minor’s capabilities are restricted by the bank. Such joint accounts offer lower minimums or fees. Banks may also set the age for transfer of the account ownership, or full joint ownership, that may be around the state’s age of majority. The structure is less formal than that for UTMA.

For more information, see https://ybbpersonalfinance.proboards.com/