No Strings High Rate Savings Accounts

[mrsilv04]

As a Vanguard customer, I was invited today to open a new Vanguard "Cash Plus" account, which is currently paying at 4.5%.

Since this money is placed by Vanguard into participating banks, it is covered by FDIC insurance.

Apparently, it is only available by invitation only to select Vanguard customers. The timing was perfect as I had some $$$ that needed to move, and I wanted to get a better return on than the 4.15% that Discover is currently offering.

Is it time to start looking at online CD rates, to start locking in these 5%+ rates for at least a year?

 

[Zee09]

Robinhood trading platform is 4.65%.
What sits uninvested gets interest and no cd. No nothing..
It's insured to $2 million .
You can float the money around daily if you want.

Required gold membership at $60 a year but that comes with other perks. Daily you see the interest earned.

 

[pezzy84]

Yup, CIT Bank is the one.
This is why I titled the thread “no strings”
Clear, straightforward, plain Jane insured savings account with a great rate.

They also offer a no strings high rate savings at 4.60% APY for someone just starting a savings account and doesn’t have the $5000 min.

I’m curious if you use their checking. Bill
Pay works fine using the app but desktop version is messed up trying to add payee’s

Just opened a Platinum Savings account @ 4.95% with CIT to park the proceeds from the sale of my condo that is happening next Friday. Easy peasy and took me maybe 10 minutes to open the account and send the wire from a different account for the $100 opening minimum.

I have banked with Chase for 10+ years now and recently had to visit a branch for a work related thing so I asked them what they offered for me to park my sale proceeds for 8-10 months.......oh yeah pretty much nothing unless I wanted to lock it up in a CD and even then it was a lower interest rate than the regular old savings at CIT. Thanks but no thanks.

 

[Pablo]

From Fidelity:

 

[alarmguy]

Just opened a Platinum Savings account @ 4.95% with CIT to park the proceeds from the sale of my condo that is happening next Friday. Easy peasy and took me maybe 10 minutes to open the account and send the wire from a different account for the $100 opening minimum.

I have banked with Chase for 10+ years now and recently had to visit a branch for a work related thing so I asked them what they offered for me to park my sale proceeds for 8-10 months.......oh yeah pretty much nothing unless I wanted to lock it up in a CD and even then it was a lower interest rate than the regular old savings at CIT. Thanks but no thanks.

Awesome glad to hear it

 

[99Saturn]

So the interest gets taxed based on the kids income instead of yours? And you have full access to the funds? If so, the IRS allows this?

Money in UGMA accounts are technically owned by the minor and withdrawals are supposed to be made for expenses that benefit the minor. Money is also the kids when they reach the age of majority and has implications for financial aid for college since it is the kids money.

Regarding how it is taxed, here's a write up on the kiddie tax from Fidelity, not as simple as it's a haven for $$$s because a kids earned income is nothing or low:

Understand the Kiddie tax | Fidelity

If you got a tax form for a minor, you may need to help them file a return.

www.fidelity.com

 

[zzyzzx]

Fidelity still lower then TBills. I wrote it wrong and fixed. Tbills pay slightly more or about the same really and are free from state tax.

 

[Pablo]

Fidelity still higher then TBills.

CDs slightly yes

MMs yes but apples oranges because not tied up for 90 days

My CDs are redeeming kinda nice!

 

[zzyzzx]

MMs yes but apples oranges because not tied up for 90 days
!

CD ladder. I have Tbills that expire every week. I can wait a week for money if I need to.

 

[Pablo]

CD ladder. I have Tbills that expire every week. I can wait a week for money if I need to.

I knew what you meant above

Basically what I do

I was just pointing out why money market accounts will never pay as much as CDs or short term T bills

 

[SC Maintenance]

CD ladder. I have Tbills that expire every week. I can wait a week for money if I need to.

T-bills can also be sold at market - although you loose your state tax free benefit - I think it becomes a capital gain. Never done though so consider what I tell you here-say.

I also have a ladder. Well more like a mess. I am trying to get it more organized as they mature. If they raise again on Wednesday 26 week should be close to 5.6% or more APR, and 52 weeks above 5.5%.

 

[atikovi]

Half a dozen savings account available over 5% with no longer term commitment like a CD. Hope this lasts.

 

[mrsilv04]

Is it time yet to start slowly sliding out of the High Yield Savings accounts, and to start locking these rates in with some CD's...?

Last rate hike from the Fed was 4 months ago.

 

[Pablo]

Is it time yet to start slowly sliding out of the High Yield Savings accounts, and to start locking these rates in with some CD's...?

Last rate hike from the Fed was 4 months ago.

Close. One hand I say wait for next CPI. But unsure of dates and such.

I have nibbled a few longer bond thingies. Nibbled.

 

[mrsilv04]

Close. One hand I say wait for next CPI. But unsure of dates and such.

I have nibbled a few longer bond thingies. Nibbled.

Well, the next meeting of the FOMC is December 12 & 13. Next CPI announcement is December 12.

 

[Pablo]

Well, the next meeting of the FOMC is December 12 & 13. Next CPI announcement is December 12.

The only harm locking in now is missing the peak. But really it's pretty minor considering 3mo vs 5 yr bond difference is small.

Again this month a bunch more CD's maturing. I'll stick some in 5.3% money market, maybe some new CD's and buy some HY funds.

 

[Vil_Riker]

I have a bunch sitting in OPER at 5.3% or so dividend... more liquid than CD-s