I’m still with Primis as the savings rate on my account is 5.04% and APY 5.16%. At one time they were way ahead but many institutions are catching up.
Primis Checking is 4.92% APR, 5.07% APY.
What savings accounts are most people here going with?
(I still use Alliant, but keep minimum amounts there: $1K in checking to maintain the 2.5% cashback card, and at various times $2-$6K in the 3.10% savings because I make a lot of payments from Alliant.)
I don’t like changing accounts but there’s almost a 2% gap between Alliant and many others.
Just received this: Bask Bank Interest Savings Account just got more interesting — interest rate of 4.97% with an annual percentage yield (APY) of 5.10%.
Vio Bank Cornerstone MM was 5.25% now 5.28%
Ponce Bank MM (via raisin) was 5.15% now 5.28%
My Banking Direct Savings was 5.00% now 5.35%
Wealthfront Brokerage Cash Account was 4.80% now 5.00%
Live Oak Bank Savings was 4.15% now 4.40%.
Can someone explain or give me a link to help me understand why HYSAs were yielding more than short term money market funds a few months ago? I had moved most of my liquid cash to HYSAs for the extra yield, and now I’m back to money markets. I know that I’m losing insurance this way, but I’m very comfortable with my MM, so the real motivation for me to be in one or the other is just the best yield.
Money market funds mostly invest in government securities of various maturity that’s relatively short-term. When the rates go up on the short-term securities, it takes some time for the MMFs to cycle through – let the old ones mature before buying new ones.
HYSAs generally pay slightly below the FED rate, which takes effect immediately at the FOMC meeting. Then the highest yielding banks follow up within a few days, while the rest take longer or don’t follow up at all.
Context: ETrade used to have a cash sweep option but Morgan Stanley eliminated that feature. I think the cash sweep has to be manually done now via MM ETF’s or mutual funds.
I was wondering if anybody could share his/her experience buying MM ETF’s or mutual funds in the ETrade accounts? Any advice would be much appreciated.
Etrade hasn’t had a money market sweep option for self-directed investors for quite some time already, not just from the Morgan Stanley transition.
You can manually purchase Vanguard’s MMFs like VMFXX or VUSXX. No fees and they settle the next business day. If you prefer ETFs, many use SGOV, but this has price fluctuations and you have to purchase whole shares, so there would be leftover change.
You can also consider other MMFs. Personally I use GABXX in the taxable account and WMPXX in the IRA.
The future is now. I just noticed it live in my Chase account (real-time transfers as an option for transfers to some of my other accounts). Looked around, and it’s this:
Interestingly the FedNow page includes an almost up-to-date list of participating banks and credit unions, but some of my FIs where it seems to be available are not listed.
I’m going along with scanchain, using Vanguard’s mm VMFXX, for recently matured CD’s.
Fidelity FZDXX also holds premium $$’s with respectable % rates. Long term CD’s with profitable % rates have been my favorite method of savings for years. But I’m making changes and moving forward with Vanguard investments. Hopefully these changes will provide less work and more profit.
I put some of my money in MMFs too. While the yields of MMFs are comparable to CDs now, when the Feds start cutting rates, the yield of MMFs will be the first to go down.
The yields on bank accounts will be the first to go down. MMFs buy fixed-rate securities, so they won’t go down until they rotating out of the maturing securities into new, lower-rate securities. It’s going to take weeks or months to show up in the yield. But savings accounts and new CDs can take effect immediately, even before a Fed announcement.
these changes will provide less work and more profit. 