HYSA recommendations?
- Thread starter clonechemist
- Start date
I moved mine to Vanguard Cash Plus (targeted offer since its early in its implementation. Currently at 4.1%. Not sure if it is widely available yet.
Started a 3mo TBill ladder about a month ago on Fidelity with a chunk of our E fund. Paying 1%+ more than the rest we have at Ally.
I’m also an ally user. Their rates where higher when others were lower. Looks like their lower while others are higher now.
For the most part, I’d try and find a bank that generally has higher rates. I’m not a fan of changing banks over stuff like that.
You're right on the FDIC limit (also make sure wherever you keep your money is FDIC insured), but the main reason rates are higher with these online savings accounts is because there isn't any overhead with branches so they can offer better rates with lower overhead costs.
Do you have a good learning source on how to do this? Once interest rates stabilize, I may be interested in doing some bond or treasures bill investment.
Here's one specifically on the mechanics of buying on Fidelity:
There are a ton of YouTube resources on TBill ladders. I found this 'Diamond NestEgg' lady pretty detailed and easy to follow:
Another solid one:
You can get many of the same yields people are posting here by going to your local investment rep. Dollar for dollar they blow away what local banks pump into the community (former loan officer here). You get a bigger community return along with about 5x the interest return (which you can then donate the extra to local charity also). Local banks bang the community return drum because they don’t really have too much to stand on, while not returning as much to the community as they like to say.
Found the banker!
I kid, of course, but do ‘local’ banks exist any more? And it’s not fractions of a percent with the online banks, it is over a percent difference on savings accounts right now.
Ones who specialize in investments. Some insurance places also have them. I know State Farm even had a financial branch at times and had savings accounts that were close to online stuff.
Yes, rural banks right cheer in the Heartland. Three banks in the county seat - one entirely local, one based in Southeast Iowa with branches in various communities, and only one an (inter)national chain - BNP Paribas) and a credit union branch whose HQ is in the next county.
Feels good not to have a sketchy Wells Fargo lurking in the shadows.
Disagree 100%. If you want the big return, you have to have the big bucks to start with.
My local banks never hound me for transfer fees, or any other kind of load, unlike one of the guy who manages some of my investments. (boy, I hate that kid, but too lazy to look elsewhere, and those funds are back to making money now. Thanks, Biden.)
Also do a lot of investing with national companies online. They don't bug me, either, unlike that %^& Junior Barnes. Oy.
A lot of money here goes to boost local agriculture and local businesses. That's a good thing, and they DO support the community, no matter what you may think you know about them.
No, not Jimmy Stewart, but almost.
A five year holding period? I think it's only 12 months. And how do you know what it will reset to?
HYSA = high yield savings account (I presume).
I've had one with American Express for several years. No fuss and liquid. I can (and have) transferred funds in a day or two. Rates vary but currently at 3.45%.
It's ridiculous that many banks pay little to nothing on savings accounts.
I've had one with American Express for several years. No fuss and liquid. I can (and have) transferred funds in a day or two. Rates vary but currently at 3.45%.
It's ridiculous that many banks pay little to nothing on savings accounts.
You have to hold 5 years or you pay a 3 month penalty. 12 months is the minimum hold time, but you’d pay penalty before 5 years.
The rate is not know, just guess from a few financial firms I follow that have some formula off Cpi. They have been pretty spot on for the last rate adjustments.
