I expect to see a return to the glory days of 5%.
I can remember making 14% or better. Be careful of what you wish for, though.
You mean stagflation? Trump can do it!
Ask me on Wednesday, November seventh.
Ho hum so far:
Citizen’s up to 2.12% from 2%
Barclay up to 1.9% from 1.85%
American Express up to 1.9% from 1.8%
PurePoint has upped their interest rate by 25 basis points!
The new rate for PurePoint savings is 2.15% APY.
Gotta remark, given the other great feature of this account, the “instant interest” feature, this is a VERY sweet and welcome rate increase . . .
. . . and unanticipated, too, at least by me.
Heck, my main “go to” liquid account at NBD is only paying 2.25% APY and NBD does not offer me instant interest . . . . . this assuming NBD has not also raised their interest rate. I’ve not checked.
Just a very brief heads up here with the thought I might not be the only one in this situation:
I pulled a bunch of dough out of Northpointe (a liquid account there) back in July because the interest rate, as things turned out, was insufficient. But I was left with nearly fifty bucks in stranded accrued interest about which I could do nothing until the end of the quarter.
OK, so that’s the heads up. The quarter finally ends Sunday and I will be able, at long last, to withdraw my interest.
Didn’t see this mentioned anywhere. Compliments of My Money Blog (direct cut/paste from their blog entry):
MemoryBank has a new account with a top rate of 2.25% APY with no minimum balance ($50 to open).
Synchrony Bank HYS now at 1.90% APY
How does buying ETF like NEAR compare with these accounts? Yield of 2.54% is higher than the interest rates of 2.25%. Plus you can get some bonuses when buying through merrill or other traders. Not FDIC insured is one problem. Not sure if that can be managed easily
I have money in stock and bonds. My emergency fund and capital I’m holding to take advantage of stocks I like that took a hit on the market are going into a fdic insured institution. That way the funds are available QUICKLY should I need to access them for whatever reason. How many days will you have to wait to get your money should you decide to exit the ETF?
When you say the yield is 2.54% are you calculating in the variance in value(52 Week Range 50.04 - 50.29) and the .25% expense ratio?
Occasionally deals come up such as agfed.org’s 30 month no penalty 2.40% CD’s…THOSE are the deals you want to take advantage rather than an etf. That being said wisebanyan.com manages part of my retirement using no load etf’s (they are a free roboadvisor…feel free to pm me if you have additional questions)…each allocation has a different purpose.
Thanks for the reminder on the fee. It will lower the return to 2.30%
How is 2.54% calculated? From Vanguard “The SEC yield for a money market fund is calculated by annualizing its daily income distributions for the previous 7 days”. This seems to be favorable in a rising rate environment
Time to transfer should be a couple days. It is an ETF so sell it and transfer the proceeds to your account?
Thanks for the wisebanyan pointer. I will look them up. I have started using wealthfront for spillover cash. I like their tax loss harvesting but don’t like .25% fee
They also have a checking account that pays 1.6%. Is Craig around - wonder if he’s tried this one yet.
If you want tax loss harvesting (and I don’t know why you wouldn’t) they charge $20 a month (this can drop if you refer people but at it’s max compared to wealthfront’s .25% against the full balance wisebanyan’s fee would only apply to the first 98K and anything past that would be fee free…in other words if you had 500k with wealthfront you’d pay $1250 in annual fee’s…at wisebanyan it would be free or if you added tax loss harvesting to be 100% comparable you’d pay $240 a year…big difference.
Anyway sorry for the offtopic folks…if anyone wants more info just pm me. Don’t want to spam the thread more than I have.
[OnTopic] With the expected trend of the rates continuing to rise I see no reason to lock my money into any term length CD unless it’s a no penalty. Does anyone see any gotcha’s with this plan? I have some 12 month cd’s that will mature around the beginning of the year and will be looking at mma’s like memorybank or wherever the highest rate is.
Ally increased from 1.85% to 1.90%.
I keep my emergency fund in ICSH. The distribution yield is about 2.4% right now and the duration of their holdings is short enough that rising interest rates shouldn’t affect it much. That said, it’s not FDIC insured so there is some risk but it’s a small amount of risk I am willing to take.
I get free trades at Merrill though and it’s more convenient for me to keep all my money there than ACH it around to different banks looking for the best MM rates.
Per Ken, EBSB Direct has unveiled the latest addition to its product line: a High-Yield Statement Savings (HYSS) account, which earns 2.50% APY on balances between $5k and $1m. $50 minimum opening deposit, new money.
*edit to add -
Early account termination: $25 if closed within 180 days
Monthly fees: None
From another site:
Mutual One Savings 2.02% —> 2.12%
Sallie Mae MM 1.90% —> 2.00%
Investor’s MM 1.90% —> 2.10%
Discover AAII Savings 1.85 —> 1.90%
Ally Savings 1.85% —> 1.90%
Synchrony Savings 1.85% —> 1.90%
Alliant Savings 1.80% —> 1.90%
Memory MM 1.85% —> 2.25%
Discover Savings 1.80% —> 1.85%
Self Help MM 1.58% —> 1.71%
Smarty Pig Savings 1.55% —> 1.75%
CIT Savings Builder 2.15%
EBSB Savings 2.50%
The only reason I have not jumped with both feet on the EBSB Savings 2.50% deal is I think better deals are around the corner or at least equivalent deals possibly from banks I already have accounts for. The .25% difference is noticeable but I’ll wait for now. I’ll be happy when the 1 year cd’s I made the mistake of getting @ 2% expire in January. It’s not worth the EWP this point. I doubt I’ll be keeping the money in the same banks either since they are now offering the same 2% rate for the savings and have basically screwed the term cd folks. I’m looking at you synchrony bank. Enjoy it while you can.
It’s going to take most banks a while to catch up to 2.5%. So I jumped on this yesterday.
It’s worth noting that EBSB does not pull your initial deposit, you must link to your new account from another bank and push the money into EBSB (or mail them a check, if so inclined). But besides having zero ACH capabilities, it was otherwise quick and painless - a few extra nuisance-type questions in the application, but it was opened instantly w/account number, online access, etc within minutes.