So then you've lost only 3 mos interest, right?
I've noticed that they've paid a higher rate than the high yield savings accounts. Don't know about TBills. Don't they require a substantial minimum?
HYSA recommendations?
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I've noticed that they've paid a higher rate than the high yield savings accounts. Don't know about TBills. Don't they require a substantial minimum?
Correct. You lose 3 months of interest as penalty. So if you would hold for 12 months at 6.9% you would get 6.9%*9/12 annualized.
No minimums on TBills you can get thru the same treasury direct website. You sign up for weekly auctions and you get something like the average of the daily bids. Last 6 month ones I bought paid 5.1.
Nothing against Ibonds, I’m heavily invested in them. Just they should be declining as inflation changes year on year are less drastic and they somewhat cumbersome to own. Their time was 12 months ago.
Ally has a 11 month no penalty CD for 4.75% right now. Can withdraw after 6 days with no penalty.
Coming back to this since we now have more data - sounds like consensus is the new I bond rate should be around 3.8% (when including variable plus fixed rate). So any I bond purchased from Nov 22 to May 1 2023 should yield around 5.3% interest over the first year.
If my rough accounting is correct, cashing out an I bond purchased in this period 1 year after purchase would yield about 4.4% interest after the 3 month interest penalty is taken into account.
So you are right, one could definitely do a bit better with T bills (though they've come down a bit from their recent peak) or CDs right now.
Your math looks right.
This site has some useful information on this subject:
i-bond-rate-november-2022-may-2023
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Apparently GreenState Credit Union has one of the best in the country according to this
bankbonus.com
Best High-Yield Savings Accounts & Rates for June 2025
High yield savings accounts are great places to stash your emergency fund or short-term savings. Here's our top picks with the highest rates.
bankbonus.com
Apparently GreenState Credit Union has one of the best in the country according to this
Best High-Yield Savings Accounts & Rates for June 2025
High yield savings accounts are great places to stash your emergency fund or short-term savings. Here's our top picks with the highest rates.
Curious where they are getting that rate info from. I see no where near that on their website: Savings Account Rates - GreenState Credit Union
I'm trying to find a new place for our savings myself. Currently with Capital One at 3.75% but seems like there are places out there offering rates in that 4.5-4.7% range when I've searched. The biggest pain is trying to find a place that maintains a consistent rate as have moved money around before only to eventually have to move it back somehwere later.
Curious as to why someone would go HYSA versus this right now?
Primarily the vast majority of people do not have a brokerage account. There's also the reality of seeing your balance go down and reacting to it, versus the balance of a HYSA will never decrease (losses v inflation are real and an entirely different conversation for most).
While many treasury/bond ETFs/MMFs will get you access to your money in short order you cannot walk up to an ATM and withdraw in the vast majorty of cases.
My emergency fund is split between a CapOne HYSA and USFR. The expense ratio on that bond fund is quite high
GreenState has a Rewards Checking Account that pays 2%.
Checking Account Rates - GreenState Credit Union
Now that rates have come up, they haven't adjusted so I moved my money to Ally.
Same here, we keep a certain ammount in a savings account to cover any unexpected expenses + some money to have on hand in case we had unexpected loss of income. I've been with my employer long enough now I'd get a year's worth of severance pay if I got laid off but I'll still always have 3-4 months of income sitting in savings in the extreme case you make an unfortunate mistake at work that resulted in a termination without pay. I do have a Schawb account that my financial advisor manages but I treat that more as long term investing and not liquid savings.
Just a balancing act of trying to save for retirement, kids 529 college savings, and paying down debt while having enough liquid savings on hand to cover any unexpected expenses. I just want make sure I am getting the best interest I can on my liquid savings account given the current rates. Long term goals are to be debt free by the time my oldest starts college and be in a position to consider retiring at age 60 or maybe at least partially retire and take on some kind of job where I can still add a little income without working a ton of hours for a few years in my early 60's.
Just saw this...You struggle with numbers?
I deal with other peoples numbers, I don't need to deal with mine lol
