High yield savings/money market

[mommy2allyandaveri]

I have about 25k that I need to park somewhere. I need be able to add to it and don't plan to really touch it for a couple of years.

This was at the advice of our financial planner. Do you guys know of a good place?

 

[TeeKo]

Are we allowed to name places?

Alliant Credit Union
savings account currently earning 0.65% APY
FDIC insured
I recently opened an account with them
it’s all online. You have to “qualify” since it’s a credit union but anyone can get in through their partner charity option at no additional cost.
APY a lot better than my local bank or my Schwab money market accounts.

 

[mommy2allyandaveri]

Yes please! Thank you

 

[mommy2allyandaveri]

The highest I have found is smartypig through sallie mae at .75. Hoping you guys know something I don't.

 

[QueenIsabella]

We have a Vanguard account. I'm afraid "high-yield" isn't happening much these days, but good luck looking.

If you truly don't need it for a few years, might a CD be worth considering? Don't use one if you might need this money for an emergency transmission or something.

 

[teller80]

I get 3% at HM Bradley. You need a direct deposit from your employer and you have to save 20% of that amount. The interest rate changes quarterly, and you would have to "earn" the 3% before the next quarter (January).

 

[RamblingMad]

It’s hard to find anything yielding enough to keep up with inflation. This was a lot easier last year.

 

[barkley]

If you truly don't need it for a few years, might a CD be worth considering? Don't use one if you might need this money for an emergency transmission or something

cd's are'nt doing very well these days either. i had a 2 year that reached maturity this week-the best the bank could offer was to lock it in for another 2 years at .75% (the 5 year rates are just barely above 1%). thankfully i have some 5 years i locked in a couple of years ago at 3% that allow additional deposits so i'll move it over there.

 

[mommy2allyandaveri]

We have a Vanguard account. I'm afraid "high-yield" isn't happening much these days, but good luck looking.

If you truly don't need it for a few years, might a CD be worth considering? Don't use one if you might need this money for an emergency transmission or something.

My 401k is managed by Vanguard, so I just gave them a call. That was the most painful, circular conversation I have ever had about finances. I would not trust a word that guy said to me! He was on the retail side, unrelated to my 401k. What an incredibly strange conversation. The short answer was no, they don't have a high interest yield savings account.

 

[Carol_]

This is real.
Redneck Bank has .80% APY*

https://redneck.bank/accounts/mega-money-market

*looks like the they may have just dropped that to .60% but Redneck bank is kind of famous for being silly and often having the best rates.

 

[kathy884]

In yesterday's Wall Street Journal there was an article yesterday saying how low interest rates were and the gist was that even though you aren't keeping up with inflation, it's a good idea to have some safe money and that chasing some additional yields for that safe money is not worth the risk. Food for thought.

 

[georgina]

FDIC insured yields are running .7-.6 % interest. I have some money at American Express savings and some in CDs with Marcus by Goldman Sachs.

 

[mommy2allyandaveri]

I'm not putting it anywhere that has risk. Just trying to find the safest/highest interest possible. I'm hesitant to do a CD, just in case I need it for something.

 

[RamblingMad]

In yesterday's Wall Street Journal there was an article yesterday saying how low interest rates were and the gist was that even though you aren't keeping up with inflation, it's a good idea to have some safe money and that chasing some additional yields for that safe money is not worth the risk. Food for thought.

Yep. Chasing yield is a bad idea. My emergency funds are all in my checking account. It's not worth doing savings, CDs, or treasuries because the short term yield is almost zero anyway.

 

[BridgetBordeaux]

American Express personal savings account, Capital One 360 savings, Discover Bank Savings......are 3 that I use.
I also have CD's there.

As mentioned, rates are now very depressed.......less than 1 percent.....but each is FDIC insured.

 

[georgina]

Yep. Chasing yield is a bad idea. My emergency funds are all in my checking account. It's not worth doing savings, CDs, or treasuries because the short term yield is almost zero anyway.

Really depends on how much you have and what you are saving for. My Vanguard money market fund is paying 0.04%. I sold several investments earlier this year in anticipation of buying a new house next year, and opened FDIC insured CD's in March 2.05 and 1.85%. Then I put some in American express, also insured. While the interest rate is not fixed, it is now 0.6%, which is 15 times the money market rate. Worth it to me.

 

[RamblingMad]

Really depends on how much you have and what you are saving for. My Vanguard money market fund is paying 0.04%. I sold several investments earlier this year in anticipation of buying a new house next year, and opened FDIC insured CD's in March 2.05 and 1.85%. Then I put some in American express, also insured. While the interest rate is not fixed, it is now 0.6%, which is 15 times the money market rate. Worth it to me.

What's the duration?

 

[jen7233]

If a CD doesn't appeal because it may be too constrictive a product for you, I'd recommend using a money market or one of the previously mentioned online savings like American Express, etc. Yields at the moment aren't spectacular on high yield savings. My criteria was ease of use online and minimal cost.

I have two at the moment and probably consolidating down, Ally Online Savings, and PenFed Premium Online (opened for potential mortgage). Although, I had an issue with Ally lately on transfers (which negated my ease of use issue, since they randomly suspended my external transfer accounts without emailing me to notify, which I found out the hard way, transferring money I needed that didn't go where I needed it to and in the time I needed it by!) I'm considering if I will keep our account with them. I also use Vanguard Federal Money Market fund to hold and transfer on investing.

 

[sarah4770]

What about looking at the short term bond funds that vanguard has? you can open that online,

 

[_19disnA]

There are several websites where you can search on current yields for various types of fixed returns. Many also offer various time frames, so you can choose something that fits your needs. "High yield" is a rather misleading term as long as the Federal Reserve continues to artificially suppress interest rates. Eventually that should change and even places like your typical bank will be able to offer interest rates where the first digit isn't a -0-.....LOL. Doubt that will be of much use in the timeframe you are asking.