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Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: Microman
Date: April 18, 2024 10:42AM
I sold some Apple stock at the beginning of the year. And I have it sitting in a very low interest Savings account.

I like the idea of having it available at a moments notice, but is there something I can do to increase the interest rate.

I have been with this Credit Union for a long time.....
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: Acer
Date: April 18, 2024 10:46AM
Define "low"
High-yield savings account in the 4% range are readily available.
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: NewtonMP2100
Date: April 18, 2024 10:49AM
Quote
Acer
Define "low"
High-yield savings account in the 4% range are readily available.

….what he said….you can easily find over 4% savings accounts…..



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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: S. Pupp
Date: April 18, 2024 10:52AM
I use Discover online savings. It doesn't take long (a few days, maybe) for funds to be transferred into BoA checking electronically, when needed. The interest rate is in the 4% range.
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: Robert M
Date: April 18, 2024 11:01AM
Microman,

It's also a question of how much cash and how quickly you want access to it when you say "at a moments notice". If it's just a few hundred, I'd likely not be bothered trying to find a higher interest rate. $1000.00 or more, then it's worth searching around for an account that offers a higher yield. However, that brings time into play.

To me," a moments notice" means I can walk to an ATM and get the cash even if it means transferring the funds from one account to another in the same institution. Transfers from one account to another within the same institution are usually instantaneous. Or walk into a local branch and get the cash via a teller transaction or check.

Instantaneous goes out the window the moment you don't have easy access to a brick and mortar location and have to start working with a transfer from one institution to another. In a case of transfers from one financial institution to another, it could take days. That's could prove problematic if you need the case very quickly.

Robert



Edited 1 time(s). Last edit at 04/18/2024 11:48AM by Robert M.
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: SDGuy
Date: April 18, 2024 11:02AM
Quote
Acer
Define "low"
High-yield savings account in the 4% range are readily available.

agree smiley

For myself, I've been using PNC for quite a few years now (currently paying 4.65%).
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: DeusxMac
Date: April 18, 2024 12:06PM
Money market account

[www.forbes.com]
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: mattkime
Date: April 18, 2024 12:49PM
I use fidelity. You can have an account that acts as a check account with overdraft access from a high interest savings account. [www.bogleheads.org]

I'm essentially getting 4.97% on all my cash. There are some higher interest rates out there but I add in a convenience factor.

---

I do find the question a bit confusing - didn't you have a rainy day fund before you sold the stock? Where do you keep that?







Edited 1 time(s). Last edit at 04/18/2024 12:53PM by mattkime.
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: Forrest
Date: April 18, 2024 01:12PM
You can leave your money in your core Fidelity money market account. SPAXX is paying 4.97% and FDRXX is paying 5.02%. Interest is paid at the beginning of the month and you can purchased stocks, mutual funds or ETFs directly from this MM accounts.

Discover Online Savings is also a good choice, paying 4.25% interest. It takes 48 hours to transfer funds between Discover and your checking account.
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: Will Collier
Date: April 18, 2024 01:30PM
The "moment's notice" is the difficult part.

Synchrony Bank and Raisin (and many others) have rates around (or above) 5%, but it can take a day or three to get money out to a regular account where you can use it.
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: Black
Date: April 18, 2024 01:33PM
Quote
Forrest
You can leave your money in your core Fidelity money market account. SPAXX is paying 4.97% and FDRXX is paying 5.02%. Interest is paid at the beginning of the month and you can purchased stocks, mutual funds or ETFs directly from this MM accounts.
This is basically what I do with some of my money. They've started bugging me to make an appointment to see how to make my money work better. But it's nice having this bit of money pay for my groceries every month, at least.
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: Tiangou
Date: April 18, 2024 02:08PM
The easiest option is to transfer most or all of the balance to a money market account with your bank/credit union.

The banks near me are now offering 4.5% on their money markets. (I've been getting postcards in the mail from them. smiling smiley)

For most purposes, it functions as an interest-bearing checking account.

[www.bankrate.com]



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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: davemchine
Date: April 18, 2024 03:22PM
Like others we use a money market account for this purpose.



Ukulele music I couldn't find anywhere else.
[colquhoun.info]
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: sekker
Date: April 18, 2024 03:46PM
MM

Apple Card account is a 4% savings too
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: bhaveshp
Date: April 18, 2024 04:40PM
Consider the Vanguard Treasury Money Market fund VUSXX

It's paying 5.2% and is typically state tax free!
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: Michael
Date: April 18, 2024 06:38PM
Quote
bhaveshp
Consider the Vanguard Treasury Money Market fund VUSXX

It's paying 5.2% and is typically state tax free!

Putting cash into federal funds can be very useful come tax time. At Fidelity, FDLXX is one of those funds. One thing when I enter information in TurboTax I have to specify how much of the earnings are state tax free in TurboTax when doing GA taxes. Don't miss that checkbox! I have a big note about doing that in my "Things to remember about taxes" page that is at the top of my tax file on my MacBook.



Edited 1 time(s). Last edit at 04/18/2024 06:55PM by Michael.
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: stephen
Date: April 18, 2024 11:18PM
Capital One Performance Savings is 4.25% and they have a 5.10% 10-month CD.

Personally, I'd buy the maximum $10,000 in iBonds and consider buying some short term treasuries. You can buy them in terms as short as 4 weeks at TreasuryDirect. I have a bunch, ranging from 26 weeks to 5 years. I just bought some 26 week T-bills at 5.366% and you can set it up to reinvest again if you like. Rates up and down the time curve are 4+ percent, some over 5 percent, and the US Treasury products don't incur state or local taxes, so the effective rate is higher.
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: stephen
Date: April 18, 2024 11:26PM
Quote
Michael
Quote
bhaveshp
Consider the Vanguard Treasury Money Market fund VUSXX

It's paying 5.2% and is typically state tax free!

Putting cash into federal funds can be very useful come tax time. At Fidelity, FDLXX is one of those funds. One thing when I enter information in TurboTax I have to specify how much of the earnings are state tax free in TurboTax when doing GA taxes. Don't miss that checkbox! I have a big note about doing that in my "Things to remember about taxes" page that is at the top of my tax file on my MacBook.

TreasuryDirect withholds some taxes on your earnings. I assume Vanguard funds like this do not? I kind of like the discipline of paying some taxes as I go, but I like the idea of a single investment like Vanguard going up and down the duration curve.
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: Robert M
Date: April 19, 2024 06:30AM
Micro,

American Express has a 4.3% high yield savings account. Again, though, you won't necessarily have instant access to the cash if you need it.

Robert
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: Microman
Date: April 19, 2024 08:16AM
Daughter in Law, suggested Alliant, I see that is 3.1% for savings.
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: NewtonMP2100
Date: April 19, 2024 08:33AM
….American Express bank as listed above……Marcus has the same rate as Apple Card savings sine Goldman Sachs owns it….also Ally bank…..



_____________________________________

I reject your reality and substitute my own!
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: Schpark
Date: April 19, 2024 01:00PM
Marcus also gives a 1% bump for 3 months for referrals. Additional referrals extend by additional 3 months etc. 4.4% currently without an referrals.
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Re: Financial Advice on having funds sit in a low interest Savings account or ?
Posted by: Microman
Date: April 27, 2024 10:10AM
Brother In Law uses Vanguard where I have some small 403, 401, and he uses VRMXX....
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