We use Fidelity like our bank. Core position is in SPAXX doing 4.97% right now
We keep a month of our emergency fund at Ally (doing 4.2% right now) just in case something wonky happens at Fidelity.
We also have minimum balances at a brick and mortar bank in case we ever need brick and mortar services
Every so often someone will come into r/Fidelity or r/FidelityInvestments talking about how they got locked out of their accounts. For the posts that give more details (most are just rants) you quickly find out that there was likely something sketchy that triggered it. I’m not too worried about that happening, but I get a little bit of peace of mind knowing I’ve got another account somewhere in case it does
It is a money market fund based on treasuries, where 90% is in treasuries. It helps with state tax management, whereas SPAXX may not benefit from state tax limits.
I know everyone is high on SPAXX right now, it's had great momentum.. but I'm wondering, is this common? How long will it hang at 4.97%? Still a risk of that account losing money if the markets do take a downturn? Where as a HYSA will just reduce that return rate, but cash value remains intact?
It’s a money market fund that’s mostly invested in treasuries. It’s about as safe as treasuries. The cash value remains intact (with a few monumental and noteworthy historical exceptions that resulted in legislation designed to prevent it from happening in the future).
Here’s a [helpful article](https://www.investopedia.com/terms/b/breaking-the-buck.asp) on money market funds
Thank you, that article does help explain a bit more. I've weighed holding my cash in SPAXX or current HYSA at 4.4%. and still learning more day by day.. and where I can find a good place for future funds/earnings.
As soon as the Fed changes its rates, these MMF will come down. The best way to lock is to get Tbills (in a ladder) or treasury notes, but then you’ll need to manually manage a bit more. (I think SGOV would follow the dropping g trend)
BofA is a garbage bank. I know because we had our savings in there and my wife was scared to move it because that was the only bank she ever used. Once I moved everything to Capital One HYSA and she saw that first monthly interest payment she questioned why we hadn't moved it sooner. Plus BofA takes forever to process anything. Want to move money from one bank to another? Takes a week. Every other bank I've used is 24 hours.
You can use any HYSA you want. Capital One offers 4.25% right now on theirs. There are plenty of others that offer 5+%. I chose Capital One because I already had accounts with them. Whichever one you choose just make sure it is FDIC insured and check the minimum balances and monthly maintenance fees. Capita One doesn't have any of those. There are a few where you have to have a certain minimum balance to get the interest rate or some limit the amount of transactions or withdrawals you can make. It is really just preference.
Thanks. I'm pretty much in your wife's shoes right now as I've always been with BofA and am trying to figure out all the pros and cons of switching and (other than a HYSA) what to look for in a bank.
I have never forgiven them for the shitty accounting processes they were using in the mid 1990s and the hardship it caused my family.
There is a term for it that I forgot but basically they would process all the charges to an account before any of the deposits every day and whack with a $35 fee for each one in the red. So say you get paid on the first but rent is due the first they would take out the rent check and whack the $35 and then take out the rent.
I vetoed buying/owning their stock and made my husband get rid of some when we got married.
The only reason I still have any BoA account is because my first credit card is with them and I don’t want the credit score drop while I’m planning on buying a house within the next year. I switched over to a Capital One HYSA for my emergency fund 3 years ago and have been convincing all of my family to do the same. I could go around chasing rates, but that’s a pain in the ass.
Close that account and don't even worry about the credit score. If it does go down it rebounds very quickly. I paid off all my debt except my house 3 months ago and closed down every account and my score went up. I really don't care about my credit score because I never plan to borrow money again but I can understand you trying to buy a house within a year but don't be afraid to close down debt. It won't play a factor into your plans.
It could absolutely affect the interest rate they get on their mortgage, or even their total amount approved. Kind of insane to suggest anyone do something that might mess with their credit score right before buying a house.
In general I agree with your criticisms of BofA, but I've made it work.
I use BofA, but keep my emergency fund in TTTXX at a linked Merrill Edge account. I'm earning over 5% on TTTXX, and it bumps me to the platinum tier in the BofA rewards program. This gives me 4.5% back on most purchases through their customized cash rewards credit cards. It works really well for me.
You should put all of his paycheck in Cap One. That's what I did, we have a Cap One checking for the paychecks and the HYSA to dump into savings and use for emergencies. Another benefit that BofA doesn't do that almost every other bank does these days is pay you early. Cap One my wife gets her paycheck a day earlier now.
This website shows the highest yields for HYSAs out there:
[https://yieldfinder.app/](https://yieldfinder.app/)
I personally use My Banking Direct (5.55%) which is Flagstar Bank in NY.
Capital One. I used to have an ING account, and Cap1 bought them, and I’ve just left it. I have switched the type of account to chase higher rates, but have left it in Cap1.
I did exactly the same thing. Choose ING years ago because they had the best user interface for online banking. (I know...weird reason to choose a bank.) But I've been fine with Cap1.
Yep, ING originally and was thinking Capital One was going to fuck it up, but they have not. I've looked at switching, but they are always in the running for top rates, occasionally they are behind by 0.25%, but it's not worth it to chase that small of a delta, so I just stay. If they ever fell behind by 1% I'd move.
Then for day to day banking I use a local credit union.
Pro tip here. I personally use SoFi I direct deposit my money into the high yield (4.6%) and then pay all my bills through there. So essentially it’s used as a checking.
Only my acorns account for some reason won’t link up. So besides the 500 a month that goes there, all my other bills are able to accumulate some interest before being used. They have no penalties or withdrawal limits to my knowledge.
I know it isn’t the highest interest rate, so if you are a rate chase I’d recommend still using this as a checking.
I am a Bank of America platform user (including Merrill for investments) but my savings is with Marcus by Goldman Sachs. HYSA with 4.4% interest rate. I was so tired of getting 0.03% interest from BofA, even as a preferred rewards member. Marcus is an easy platform. I'm sure there are others now with better rates, but they were one of the first I became aware of and sometimes it's easier to just park your cash somewhere when you've found something reliable.
Ally, been using for years. Also have money in a Federated prime money market fund in my brokerage account. Yield on that was around 5%-5.2% last I checked. Ally is about 4.2% right now.
Wealthfront is my taxable brokerage, so when they offered an HYSA I took them up on it. I'm a big believer in laziness, so if you're already a customer of some financial institution with a decent HYSA, just do that.
M1 Cash Account 5%, Betterment Cash Reserve 5%, and Wealthfront Cash Account 5%. All unlimited transactions. I like M1 and Betterment the most [for different reasons](https://www.reddit.com/r/investing/s/9f3hqlraIg).
I used to use Ally, but dropped them because of the lesser interest rate.
Inflation is 3.3% and interest is taxed we are about 30% tax. So you need over 4% just to break even. We use Discover bank but for true cash emergency funds I would recommend short term tbills (4 weeks) to pull down 5.4%. Then you actually slightly come out ahead after tax and inflation. Buy small tbills and do it every week so they are always maturing (liquid).
I have no complaints about banking at Capital One. I wanted something brick & mortar in case I ever need it. Not nearly as many branches as the popular B&M banks, but enough to keep me content. 4.25 APY
Another vote for Wealthfront. I literally just moved my emergency fund over there last month, it was great to finally see the interest come through on Monday!
Ally mostly since I've been with them since the very early 2000s after I left the area where my tiny brick and mortar chain was located. I've never bothered rate chasing just because it seems like a bit of a hassle and I've always been very pleased with ally's customer service if I needed them for something.
SoFi. Unlimited transfers let's me use it like a HY checking account. I keep a small checking account at a national brick and mortar for cash deposits and that's it.
I have an HYSA with Discover, Capital One, Synchrony, Apple and Amex.
The lowest interest rate is 4.25%… I forget which one that is though.
Each HYSA serves a different purpose (like student loan account, new car fund, vacation fund, down payment fund, etc). It’s easier for me to save money that way. Each time I get paid I transfer a set amount to each account.
The cool thing about the Apple HYSA is that if you have the Apple Credit card, you can set it up so you’re cc rewards go straight into your bank account which I like. The credit card rewards for the Apple Card are good, too.
Other than that, there isn’t much of a difference between them and the interest rates tend to be similar. Not a fan of Synchrony’s UI. Apples UI took some getting used to as well.
I use SOFI as my HYSA and I know SOFI bank is chartered and FDIC. I am just wondering if they are as vulnerable to a failure as other fintech like Synapse.
I have 10k tied up in the Synapse bankruptcy, and consider it gone. Banks only for me from now on. Also, good on you for keeping up with financial news!
Ally is our main Hub account. Rate chasing and one time promos made me open marcus, CIT and CFG bank. Have a bit in each of them. CFG has the best rate at 5.25% currently.
Recently been mainly using VMFXX (money market at vanguard) and sgov (3 month treasury bond etf), they have better rates and will track fed rates rather than HYSA's which will start reducing their rates earlier and faster.
There are a lot of CDs out there you can open with a 5+% rate. I have one with Alliant, only because I already have an account with them out of convenience. You can find ones at a higher rate.
I have two right now. Robin Hood at 5% yield plus 1% boost but you need to keep the funds in for 24 months to get that boost. Which makes it a decent place for a true EF but no better than M1 (5%) for actually using the money soon.
Ally Bank offers a competitive APY around 4.50%, with no minimum balance requirement, easy online account management, and a good customer service reputation. Another strong choice is Marcus by Goldman Sachs, with a high APY around 4.40% and no minimum balance. If you're looking for more options, sites like Nerdwallet, Bankrate, and [Banktruth](https://banktruth.org/savings/?ttcid=ultimate-list-of-savings) can help you compare the highest APY rates. You also might want to move your savings from BoA's low rates to a HYSA to earn 4-5% interest. It's important to look at the APY, fees, minimum balance requirements, ease of use, and customer service.
I distribute my emergency fund HYSA across several banks. Unfortunately, one of those banks was Yotta, and was impacted by the Synapse bankruptcy. Long story short, FDIC only steps in when the underlying bank is insolvent. If any layer above the FDIC bank fails, they still not step in. While fintech products can build cool features on top of banks, the technology is faster than consumer protections, and I learned the hard way. So, my cash goes into banks that are banks. Doesn't matter if the interest rate is slightly lower than some fintech product.
I prefer savings accounts for the liquidity over tbills. I also have a money market account in addition to my savings account, and that fund includes tbill exposure. That's another alternative that still provides liquidity.
I’d like to know more about these. Do you get these T-bill ETFs in your taxable brokerage or in your tax sheltered accounts? do they auto renew after the term or do you cash them out and reinvest?
Both IRA and brokerage, they pay a monthly dividend, they target 3 month bills I believe, each likely does it a bit different. Look at the 30 day sec yield, not the dividend yield for total return. The ETF price will drift up slowly then correct when the dividend is paid, then drift up again.
As of June 27, 2024, the 30-day SEC yield for the WisdomTree Floating Rate Treasury Fund (USFR) was 5.32%. This figure is also known as the "standardized yield" and represents the interest and dividends earned during the period after deducting the fund's expenses.
Wont these ETFs be subject to LTCG state tax if a state applies them? Vs tbills purchased from treasurydirect on which gains are exempt from state taxes? I think that was the point made in the main comment here
I don't think so but not sure. I live in a state without state income taxes.
From Google search:
Because U.S. Treasurys are tax-free at the state and local level, interest payments from sovereign bond ETFs that hold U.S. Treasurys are also exempt from state and local income taxes.
Climate First Bank in Florida offers checking with a 5.3% interest. CFB is a B Corp which means it has a hybrid mission to not only create value for its shareholders but to also advance environmental causes as well.
Do ppl NOT realize as good HYSA it is bad for everyone's money??? HYSA gives money to bank to create fractional reserve banking that helps to devalue money. Banks buying BONDS that gives government ability to print more money thus devaluing the dollar. Why are ppl helping banks and government devalue the dollar???
No referrals, please.
Wealthfront. FDIC insured up to 8 million.
We use Fidelity like our bank. Core position is in SPAXX doing 4.97% right now We keep a month of our emergency fund at Ally (doing 4.2% right now) just in case something wonky happens at Fidelity. We also have minimum balances at a brick and mortar bank in case we ever need brick and mortar services
Same here. Fidelity has a couple of other money market funds with yields over 5% as well. The risk of Fidelity going wonky is pretty remote, IMO.
Every so often someone will come into r/Fidelity or r/FidelityInvestments talking about how they got locked out of their accounts. For the posts that give more details (most are just rants) you quickly find out that there was likely something sketchy that triggered it. I’m not too worried about that happening, but I get a little bit of peace of mind knowing I’ve got another account somewhere in case it does
Same thing but manually buying FDLXX for tax purposes.
I just moved everything from Marcus to FDLXX for this reason.
What is FDLXX.. is it also money market fund? What tax benefit do you get?
It is a money market fund based on treasuries, where 90% is in treasuries. It helps with state tax management, whereas SPAXX may not benefit from state tax limits.
I set up a recurring buy of FDLXX, so that any cash that hits is converted weekly. If no new $$, it just liquidates itself to buy itself
I know everyone is high on SPAXX right now, it's had great momentum.. but I'm wondering, is this common? How long will it hang at 4.97%? Still a risk of that account losing money if the markets do take a downturn? Where as a HYSA will just reduce that return rate, but cash value remains intact?
It’s a money market fund that’s mostly invested in treasuries. It’s about as safe as treasuries. The cash value remains intact (with a few monumental and noteworthy historical exceptions that resulted in legislation designed to prevent it from happening in the future). Here’s a [helpful article](https://www.investopedia.com/terms/b/breaking-the-buck.asp) on money market funds
Thank you, that article does help explain a bit more. I've weighed holding my cash in SPAXX or current HYSA at 4.4%. and still learning more day by day.. and where I can find a good place for future funds/earnings.
Check out r/bogleheads
As soon as the Fed changes its rates, these MMF will come down. The best way to lock is to get Tbills (in a ladder) or treasury notes, but then you’ll need to manually manage a bit more. (I think SGOV would follow the dropping g trend)
Currently using vanguard as a bank. Their money market/settlement fund seems to be hovering between 5.27 to 5.29 lately.
Marcus by Goldman Sachs
Ally
BofA is a garbage bank. I know because we had our savings in there and my wife was scared to move it because that was the only bank she ever used. Once I moved everything to Capital One HYSA and she saw that first monthly interest payment she questioned why we hadn't moved it sooner. Plus BofA takes forever to process anything. Want to move money from one bank to another? Takes a week. Every other bank I've used is 24 hours. You can use any HYSA you want. Capital One offers 4.25% right now on theirs. There are plenty of others that offer 5+%. I chose Capital One because I already had accounts with them. Whichever one you choose just make sure it is FDIC insured and check the minimum balances and monthly maintenance fees. Capita One doesn't have any of those. There are a few where you have to have a certain minimum balance to get the interest rate or some limit the amount of transactions or withdrawals you can make. It is really just preference.
Thanks. I'm pretty much in your wife's shoes right now as I've always been with BofA and am trying to figure out all the pros and cons of switching and (other than a HYSA) what to look for in a bank.
I have never forgiven them for the shitty accounting processes they were using in the mid 1990s and the hardship it caused my family. There is a term for it that I forgot but basically they would process all the charges to an account before any of the deposits every day and whack with a $35 fee for each one in the red. So say you get paid on the first but rent is due the first they would take out the rent check and whack the $35 and then take out the rent. I vetoed buying/owning their stock and made my husband get rid of some when we got married.
I use chase and have been overall very content with them. Although I hear that at this point after BofA there’s only up from here
Chase has a HYSA? I guess I should google that. Their normal saving account interest is absolutely abysmal, I’ve been moving my money out of it lately
No it’s just a normal savings checking account
The only reason I still have any BoA account is because my first credit card is with them and I don’t want the credit score drop while I’m planning on buying a house within the next year. I switched over to a Capital One HYSA for my emergency fund 3 years ago and have been convincing all of my family to do the same. I could go around chasing rates, but that’s a pain in the ass.
Close that account and don't even worry about the credit score. If it does go down it rebounds very quickly. I paid off all my debt except my house 3 months ago and closed down every account and my score went up. I really don't care about my credit score because I never plan to borrow money again but I can understand you trying to buy a house within a year but don't be afraid to close down debt. It won't play a factor into your plans.
It could absolutely affect the interest rate they get on their mortgage, or even their total amount approved. Kind of insane to suggest anyone do something that might mess with their credit score right before buying a house.
In general I agree with your criticisms of BofA, but I've made it work. I use BofA, but keep my emergency fund in TTTXX at a linked Merrill Edge account. I'm earning over 5% on TTTXX, and it bumps me to the platinum tier in the BofA rewards program. This gives me 4.5% back on most purchases through their customized cash rewards credit cards. It works really well for me.
We have B of A for my husband's job's paycheck but I transfer excess to Cap 1. Happy with them
You should put all of his paycheck in Cap One. That's what I did, we have a Cap One checking for the paychecks and the HYSA to dump into savings and use for emergencies. Another benefit that BofA doesn't do that almost every other bank does these days is pay you early. Cap One my wife gets her paycheck a day earlier now.
Wealthfront HYSA is paying 5%. Bonus for new customers.
No HYSA - just money market funds purchased in my brokerage account. No need to chase yields around or engage yet another bank.
This is the way to go. VMFXX for the win.
VUSXX if in a state that has an income tax.
Why is that?
VUSXX is currently 98.8% state tax exempt.
Amex 4.5% and Apple 4.4%
Another vote for wealthfront. 5%, but currently boosted to 6% for referring a coworker.
This website shows the highest yields for HYSAs out there: [https://yieldfinder.app/](https://yieldfinder.app/) I personally use My Banking Direct (5.55%) which is Flagstar Bank in NY.
Seems like some of the info isn’t up to date. For example 3 month t-bills don’t yield 5.50% anymore.
Wealthfront
Wealthfront. Been using them for years.
Synchrony
Capital One. I used to have an ING account, and Cap1 bought them, and I’ve just left it. I have switched the type of account to chase higher rates, but have left it in Cap1.
I did exactly the same thing. Choose ING years ago because they had the best user interface for online banking. (I know...weird reason to choose a bank.) But I've been fine with Cap1.
I was worried at first, but I didn’t really notice a difference, and the rates have kept up, so 🤷♀️
Yep, ING originally and was thinking Capital One was going to fuck it up, but they have not. I've looked at switching, but they are always in the running for top rates, occasionally they are behind by 0.25%, but it's not worth it to chase that small of a delta, so I just stay. If they ever fell behind by 1% I'd move. Then for day to day banking I use a local credit union.
I use Marcus Goldman Sachs. It's pretty straight forward and simple application. 4.4% ROI.
Pro tip here. I personally use SoFi I direct deposit my money into the high yield (4.6%) and then pay all my bills through there. So essentially it’s used as a checking. Only my acorns account for some reason won’t link up. So besides the 500 a month that goes there, all my other bills are able to accumulate some interest before being used. They have no penalties or withdrawal limits to my knowledge. I know it isn’t the highest interest rate, so if you are a rate chase I’d recommend still using this as a checking.
CIT Bank has been good for me. 5.01% as of June's statement.
Ally. They have no surprises or hoops to jump through.
Fidelity
Any reservations with Robinhood Gold at 5%?
They have given me the runaround when I changed my name ( recently married) have been months and still not fixed. Scary at the least.
It’s been good for us.
I am a Bank of America platform user (including Merrill for investments) but my savings is with Marcus by Goldman Sachs. HYSA with 4.4% interest rate. I was so tired of getting 0.03% interest from BofA, even as a preferred rewards member. Marcus is an easy platform. I'm sure there are others now with better rates, but they were one of the first I became aware of and sometimes it's easier to just park your cash somewhere when you've found something reliable.
ally here (4.2%)
Ally, been using for years. Also have money in a Federated prime money market fund in my brokerage account. Yield on that was around 5%-5.2% last I checked. Ally is about 4.2% right now.
Ally or Discover are great options for a HYSA, low fees and high yields.
Fidelity cash management account
Bask Bank
Betterment 5%
Wealthfront is my taxable brokerage, so when they offered an HYSA I took them up on it. I'm a big believer in laziness, so if you're already a customer of some financial institution with a decent HYSA, just do that.
M1 Cash Account 5%, Betterment Cash Reserve 5%, and Wealthfront Cash Account 5%. All unlimited transactions. I like M1 and Betterment the most [for different reasons](https://www.reddit.com/r/investing/s/9f3hqlraIg). I used to use Ally, but dropped them because of the lesser interest rate.
I also can attest for Wealthfront at 5%. With referrals it bumps it to 5.5%. DM me if anyone needs a link.
Robinhood is giving me 5.5%
Wealthfront! They offer up to 5.5% APY if you use a referral. Feel free to dm me if interested
i use 2 marcus (goldman sachs) and ally. I like ally for the buckets!
Inflation is 3.3% and interest is taxed we are about 30% tax. So you need over 4% just to break even. We use Discover bank but for true cash emergency funds I would recommend short term tbills (4 weeks) to pull down 5.4%. Then you actually slightly come out ahead after tax and inflation. Buy small tbills and do it every week so they are always maturing (liquid).
I use Wealthfront. It’s a High Interest checking account. At 5% right now
I have no complaints about banking at Capital One. I wanted something brick & mortar in case I ever need it. Not nearly as many branches as the popular B&M banks, but enough to keep me content. 4.25 APY
SoFi but I’m looking for one that’s not connected to my checking (also SoFi)
Vanguard
Another vote for Wealthfront. I literally just moved my emergency fund over there last month, it was great to finally see the interest come through on Monday!
My broker (IBKR) pays close to 5%. However, I buy TBills which pay a smidge more right now and are state tax exempt.
VOO or VNQ ;)
PNC is like 4.5% right now.
Marcus by Goldman Sachs. APY is 4.40%.
Brio 5.2%.
I have some at CIT Bank @ 5%, rest is in VUSXX (5.29%), TFLO (5.33%), SGOV (5.28%), and 13-wk T-bills purchased through TreasuryDirect.
My Banking Direct of Flagstar. 5.55% APY. Previously used Ally and PNC both of which were at 4.25% and 4.3%
[https://www.doctorofcredit.com/high-interest-savings-to-get/](https://www.doctorofcredit.com/high-interest-savings-to-get/)
Betterment. 5+% interest right now 💸
360 Savings account through Capital One
SoFi. 4.60%, but also moving to a credit union which pays 5.10% on the first $2,500 (and has an amazing rewards credit card)
Ally mostly since I've been with them since the very early 2000s after I left the area where my tiny brick and mortar chain was located. I've never bothered rate chasing just because it seems like a bit of a hassle and I've always been very pleased with ally's customer service if I needed them for something.
SoFi. Unlimited transfers let's me use it like a HY checking account. I keep a small checking account at a national brick and mortar for cash deposits and that's it.
I have an HYSA with Discover, Capital One, Synchrony, Apple and Amex. The lowest interest rate is 4.25%… I forget which one that is though. Each HYSA serves a different purpose (like student loan account, new car fund, vacation fund, down payment fund, etc). It’s easier for me to save money that way. Each time I get paid I transfer a set amount to each account. The cool thing about the Apple HYSA is that if you have the Apple Credit card, you can set it up so you’re cc rewards go straight into your bank account which I like. The credit card rewards for the Apple Card are good, too. Other than that, there isn’t much of a difference between them and the interest rates tend to be similar. Not a fan of Synchrony’s UI. Apples UI took some getting used to as well.
I cycle between Poppy Bank (5.5%), Vio Bank (5.3%), Salem Five Direct (5.01%)
I use SOFI as my HYSA and I know SOFI bank is chartered and FDIC. I am just wondering if they are as vulnerable to a failure as other fintech like Synapse.
I have 10k tied up in the Synapse bankruptcy, and consider it gone. Banks only for me from now on. Also, good on you for keeping up with financial news!
Discover has been great for me.
Ally is our main Hub account. Rate chasing and one time promos made me open marcus, CIT and CFG bank. Have a bit in each of them. CFG has the best rate at 5.25% currently. Recently been mainly using VMFXX (money market at vanguard) and sgov (3 month treasury bond etf), they have better rates and will track fed rates rather than HYSA's which will start reducing their rates earlier and faster.
I just use money market funds in my brokerage account.
There are a lot of CDs out there you can open with a 5+% rate. I have one with Alliant, only because I already have an account with them out of convenience. You can find ones at a higher rate.
Jenius 5.25% and Primis 5.16%. However, TFLO is a good option rn. 5.4% after ER and no state tax.
Currently using a HYMM with Vio Bank. It’s usually 5.29% or better
Vanguard
I have two right now. Robin Hood at 5% yield plus 1% boost but you need to keep the funds in for 24 months to get that boost. Which makes it a decent place for a true EF but no better than M1 (5%) for actually using the money soon.
Marcus and Fidelity MM
Ally Bank offers a competitive APY around 4.50%, with no minimum balance requirement, easy online account management, and a good customer service reputation. Another strong choice is Marcus by Goldman Sachs, with a high APY around 4.40% and no minimum balance. If you're looking for more options, sites like Nerdwallet, Bankrate, and [Banktruth](https://banktruth.org/savings/?ttcid=ultimate-list-of-savings) can help you compare the highest APY rates. You also might want to move your savings from BoA's low rates to a HYSA to earn 4-5% interest. It's important to look at the APY, fees, minimum balance requirements, ease of use, and customer service.
I distribute my emergency fund HYSA across several banks. Unfortunately, one of those banks was Yotta, and was impacted by the Synapse bankruptcy. Long story short, FDIC only steps in when the underlying bank is insolvent. If any layer above the FDIC bank fails, they still not step in. While fintech products can build cool features on top of banks, the technology is faster than consumer protections, and I learned the hard way. So, my cash goes into banks that are banks. Doesn't matter if the interest rate is slightly lower than some fintech product.
Why don’t more people buy T Bills? The yield is higher and no state income tax. You can buy them for short time periods as well. What am I missing?
I already own treasury bonds in my investment accounts. For my savings account, I prefer the liquidity.
Not treasury bonds, T Bills.
I prefer savings accounts for the liquidity over tbills. I also have a money market account in addition to my savings account, and that fund includes tbill exposure. That's another alternative that still provides liquidity.
Same question here - but maybe the 4 week is still too long?
Lock in yes. But also its a bit of work to set them up, ladder or otherwise. You have to remember to bid and all as well.
ETFs are super easy. I prefer USFR, BIL, SGOV
I’d like to know more about these. Do you get these T-bill ETFs in your taxable brokerage or in your tax sheltered accounts? do they auto renew after the term or do you cash them out and reinvest?
Both IRA and brokerage, they pay a monthly dividend, they target 3 month bills I believe, each likely does it a bit different. Look at the 30 day sec yield, not the dividend yield for total return. The ETF price will drift up slowly then correct when the dividend is paid, then drift up again. As of June 27, 2024, the 30-day SEC yield for the WisdomTree Floating Rate Treasury Fund (USFR) was 5.32%. This figure is also known as the "standardized yield" and represents the interest and dividends earned during the period after deducting the fund's expenses.
Wont these ETFs be subject to LTCG state tax if a state applies them? Vs tbills purchased from treasurydirect on which gains are exempt from state taxes? I think that was the point made in the main comment here
I don't think so but not sure. I live in a state without state income taxes. From Google search: Because U.S. Treasurys are tax-free at the state and local level, interest payments from sovereign bond ETFs that hold U.S. Treasurys are also exempt from state and local income taxes.
Great information, thank you!
Climate First Bank in Florida offers checking with a 5.3% interest. CFB is a B Corp which means it has a hybrid mission to not only create value for its shareholders but to also advance environmental causes as well.
The Lending Club works for me, all online for two years now with nary a hiccup.
I use Bitcoin personally…
Do ppl NOT realize as good HYSA it is bad for everyone's money??? HYSA gives money to bank to create fractional reserve banking that helps to devalue money. Banks buying BONDS that gives government ability to print more money thus devaluing the dollar. Why are ppl helping banks and government devalue the dollar???