Liquid Savings and CDs - Where Do You Keep Your Cash?

@ilpapa …I havent bothered because I dont have enough $ to make it worthwile🤪

I think Vanguard, Fidelity and Schwab all have similar products. I only recently realized how much higher their yields are compared to retail banks (Bank of America, Chase, etc) and credit unions.

I said this above. It’s the best way I’ve found to have the “pledge asset loan”. A low interest line of credit for large purposes.

Prior I’d have to sell investments. Trigger capital gains. But this is a way around it if you still work and have income.

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Chase has a product for midsized accounts where you can get treasuries which are in the 4.5% and if you need liquidity, you can get a line of credit for very low rates. Rates are in the 5-6 based on SIBOR. I just talked to them about this on Thursday. I work in Real Estate but right now I don’t have anything that can use that money but things can change overnight.

The single best I Bond explainer I’ve read

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https://www.penfed.org/accounts/money-market-certificate

I received an email on that today. It is shocking for PenFed to have one of the top offerings, as that rarely happens. While 4.35% is good, I’m still hesitant to lock the money in. I have high yield savings accounts at over 3%, and we know additional increases are coming, so the risk isn’t (currently) worth the reward IMO.

What you and I know today the bond market thought of and priced in several months ago. Note the rates across the yield curve are lower after the last 0.75 point hike. The 10 year yield is about 0.5 point lower than where it was right before the last Fed meeting.

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For cash to be used, largely in CapitalOne & Marcus - both paying 3% currently.

Retirement cash - have a 7-day maturity money market fund offered by the brokerage currently paying a 3.37% annualized yield. Every 7 days the yield changes, for now it’s increasing. For reference at position open a month ago it was at 3.01%.

redneck bank at 4.25 for checking and 4.0 for savings

Robinhood pays 3.75% on idle cash sitting in the brokerage account if you upgrade to Robinhood Gold. It costs $5 per month and 1st month is free.

No minimum and max I would put with them will be the FDIC limit at their program banks where they park the cash. They have been increasing the rates every time Fed raises so I expect that to continue until it won’t.

The good thing is if you spot an opportunity in the stock market or Crypto for a short-term trade, the money sweeps right in.