So I assume you make sure the money is fully available from initial bank before ever starting? I could see trying to get an extra day here and there if you knew exactly when things would clear and ally is pretty good about telling you but you always risk the funds not being available and associated fee’s which would wipe out any potential day’s interest.
Thanks…I finally signed up at EBSB since no one else has gotten where I want (interest rate wise). Purepoint is in my list now so I can move some funds earning lower while I’m still waiting to see how that Navy Fed deal falls out. Luckily already a member there.
But double interest is easy with PurePoint. ACH withdraws initiated today, for example, will earn three days of double interest, today (Friday), tomorrow (Saturday), and Sunday. The money will not come out of the targeted account until this coming Monday. And double interest is very sweet even for just one day, no less for three.
While on hold with EBSB their automated system said something like “All funds deposited at EBSB are insured through a combination of FDIC and VIF insurance.”
Anyone know what VIF insurance is? Is this similar to where Garden ensured an additional amount?
It could have been! Thanks! I see EBSB is a member for the DIF so amounts above 250K should also be covered? Only an issue if I want savings and a cd at some later point with EBSB.
That’s too bad about Northern Bank. I was hoping they would stay competitive as rates moved upward but doesn’t look likely. May be time to close them out.
I’m posting this as a straw man proposal, not something I actively do myself or promote.
But consider that Vanguard’s settlement fund VMFXX has a compound yield of 2.33%. If one already has a brokerage account with Vanguard and wants a simple life, this isn’t such a bad place to stash cash.
Pros:
Vanguard does a pretty good job with ACH in or out.
Moving into or out of securities held at Vanguard is as convenient as it gets.
Bookkeeping is simplified.
Cons:
This is not FDIC insured and in theory a share price being $1 is not guaranteed. (However, the funds are invested in U.S. government securities, so risk is negligible).
VMFXX doesn’t have a stellar track record of being competitive on yield (but has lately).
You could make $170 more taxable income in a year on $100K if you chased the highest liquid APY in the wiki.
Interesting. I learned today that the forum software has a bug: Control-F search does not pull up all posts matching “Northpointe”! I did that search prior to posting this update as I saw the quick summary said that the current rate was 1.95% (I updated it to 2.3%). It showed that the last post about Northpointe was in June!
Ken is featuring a new savings account on his blog. North American Savings Bank is now offering a high yield savings account with a 50k minimum paying 2.53% with a 6 month rate guarantee. Other than the high minimum which may be a barrier for some, this looks to be a good offering. Not much better than EBSB but finally some competition at the 2.5% and above interest rate point!
