High yield checking/savings accounts

[DangerRanger]

I have enjoyed Wealthfront. Not had any issues to think of yet.


Pm me for a bonus code if you sign up (or anyone else)

 

[NormNorm]

I keep a checking account open with a local bank just for the brick and mortar perks, but I use Fidelity for any savings and investing outside of workplace retirement plans. I tried Vanguard, Schwabb, and a number of other financial outfits, and Fidelity came away as the easiest to use and the best support (I always get an agent based here in the U.S., never some outsourced person like so many other companies are doing).

At Fidelity, you can open a CMA (cash management account) and it effectively acts like a checking account, except you can use any cash to buy holdings like SGOV or VUSB, which are ultra short-term t bill funds that offer the same or better rates than many of the products listed so far, and they aren’t subject to longer term rate lock ins. Your money is never more than 2 days away, since you need to sell the funds and let the money settle before withdrawing, so you’re still very liquid. You could also just leave the money in SPAXX too as a default.

In my overall investment portfolio, we’ve got a solid sized cash wedge so we don’t have to sell when the market dips, or to deploy cash at good opportunities. Keeping that cash in the manner described above keeps it from losing its luster to inflation (as much as possible) with minimal risk of the investment going down. If you’re in a state with state taxes, it can be tax-free income as well (still taxable for Fed).

* Not investment advice

 

[ODB]

For me yes.

My CU offers 5% on the first $2000. After that it drops off A LOT.
So I have $2000 making 5% and a lot more making 4% in Betterment

This sounds like BECU in Seattle. They make a huge deal with a high % on the first $500(!) then it drops to .25%. We had accounts when we lived there and still use it for billpay because it’s actually quite good, but keep nothing over there anymore except that to cover operating expenses. Probably drives them nuts.

 

[RickDalton]

Marcus by Goldman Sachs. Been using them for nearly 10 years. My current rate of 3.65% is the lowest I have ever had if I am remembering correctly. Its been as high as over 5% in recent years. I wouldn't look anywhere else. Transfers are super easy, the website is easy to use and looks nice, rates are always good, and they offer promotional high CD rates regularly.

This. ^

 

[Floated_down]

???

High yield preferred shares of Strategy. yield goes up/down as needed to maintain the $100 per share target. Pays dividends monthly at the current rate of 11.5%

 

[CorbLand]

My brokerage account charges crazy high fees for SPAXX. What another way to invest in this? Go direct to Fidelity?

Does your brokerage have something similar?

 

[Fireflyfishing]

Does your brokerage have something similar?

Yes, I’m in a couple of treasury funds that offer a similar return. They do have low expenses related with them. I need to get a hold of my brokerage firm and see what else they offer. That being said I don’t mind spreading money elsewhere.

Edit: I did find an equivalent and moved some funds that way!

 

[UncleNommies]

Marcus by Goldman Sachs. Been using them for nearly 10 years. My current rate of 3.65% is the lowest I have ever had if I am remembering correctly. Its been as high as over 5% in recent years. I wouldn't look anywhere else. Transfers are super easy, the website is easy to use and looks nice, rates are always good, and they offer promotional high CD rates regularly.

I will second this! Marcus by Goldman Sachs is who I use as well. Also they are recommended by Dave Ramsey!

 

[UnckleBob]

High yield preferred shares of Strategy. yield goes up/down as needed to maintain the $100 per share target. Pays dividends monthly at the current rate of 11.5%

That is not a "savings" vehicle. Savings strategies should be low risk to ensure that the money is there when you need it. Savings Accounts, CD's, T Bills, Money Market accounts.

Investment Strategies involve taking on risk in hopes of obtaining a higher return. Anything that has "high yield" in its name indicates a higher risk investment. There is nothing inherently wrong with high yield funds provided they are part of a diversified portfolio of investments.

The Strategy investment is a particularly high risk investment strategy based because it is dependent upon the value of bitcoin constantly increasing.

 

[z987k]

The Strategy investment is a particularly high risk investment strategy based because it is dependent upon the value of bitcoin constantly increasing.

Yes it is. And what else requires that?

 

[UnckleBob]

Yes it is. And what else requires that?

This thread is not about whether Bitcoin is or is not a good investment choice. The simple fact is it is a speculative investment that carries a real risk of loss to principle. (I wouldn't advise anyone to replace their "savings acoounts" with a S&P 500 fund for the same reason)

Risk makes any investment based upon Bitcoin a very poor choice for replacing high yield checking or savings accounts backed by FDIC insurance.

Savings => preservation of principle is a key priority even if it means sacrificing returns.

Investments => total return is the priority and maximizing total return means taking on risk.

 

[z987k]

This thread is not about whether Bitcoin is or is not a good investment choice. The simple fact is it is a speculative investment that carries a real risk of loss to principle. (I wouldn't advise anyone to replace their "savings acoounts" with a S&P 500 fund for the same reason)

Risk makes any investment based upon Bitcoin a very poor choice for replacing high yield checking or savings accounts backed by FDIC insurance.

Savings => preservation of principle is a key priority even if it means sacrificing returns.

Investments => total return is the priority and maximizing total return means taking on risk.

I think it's a stretch to call strategy an investment.
I guess as long as you dont get caught holding the bag.

 

[UnckleBob]

I think it's a stretch to call strategy an investment.
I guess as long as you dont get caught holding the bag.

I did not want to get into the merits of the investment itself, but call me extremely skeptical.

 

[MImatt]

AMEX is 3.3% HYSA with the checking at 1%

Think the HYSA started at like 3.7% and has dropped 4 tenths over the past year.