Best place to store Cash besides the higher interest?

[ER Man]

Dude, ever heard of Google? Been out of your mom's basement in the last 5 years?

I have but people here have some serious goals.

 

[ER Man]

Use your cash to pay off debt and pay down the mortgage, put any spare into a saving account, CD, MM or short term bond fund.

What if there is no debt and no mortgage? I am aware of the online savings/MM accounts that offer high apy's compare to traditional banks.

What about I-Bonds?

 

[jayc]

Zero risk?
How would you compare this to 1.15% APY (guaranteed) vs 3% or bettter for 1 year? If the gov't and/or corporate cannot pay back its loan then you can't get that money back at maturity.

3 - 1.15 = 1.85% better. It is all based on your risk tolerance. That's the way the world works. You slap down your money and you spin the wheel. Use the search feature, educate yourself and start a CD latter at your credit union until you understand risk/reward.

 

[ER Man]

3 - 1.15 = 1.85% better. It is all based on your risk tolerance. That's the way the world works. You slap down your money and you spin the wheel. Use the search feature, educate yourself and start a CD latter at your credit union until you understand risk/reward.

Online savings rates are just as good as CD's but you are tied up in a CD though.

 

[calmloki]

When rates are headed down having those rates locked on your CD account is pretty nice vs. having them step down down down every couple months. Wasn't jazzed about the rate on my PenFed 5 year CDs back when we got them - right now the rate is brilliant compared to our savings account rates..

 

[obgyn65]

I feel the same about my 6.75% municipal bonds I bought 4 or 5 years ago...

Wasn't jazzed about the rate on my PenFed 5 year CDs back when we got them - right now the rate is brilliant compared to our savings account rates..

 

[Lsbcal]

Yeah, I agree, the dollar bills are way better for rolling around in than the dollar coins. Those leave little marks on you that are very unattractive.

I'm not so sure about this. As I recall from my comic book days, Scrooge McDuck never got hurt diving into his coin hoard:

 

[skipro3]

Wells Fargo Stable Return Fund

 

[Lsbcal]

Where is the best place to keep your cash besides the higher interest online savings account?

Which online savings account do you usually store your cash?

I use Smartypig for to keep my emergency funds and/or 6+ months of rainy day fund.

On a more serious note (then my other post), have you looked into reward checking accounts at a credit union? Ours pays 2% on accounts up to $25k. We have to have 12 debit transactions/month + 1 ACH transfer. Pretty easy to do if you're motivated a bit.

 

[ItDontMeanAThing]

I'm not so sure about this. As I recall from my comic book days, Scrooge McDuck never got hurt diving into his coin hoard:

His feathers hid the bruises.

 

[SandsofTime]

I like to get several thousand one dollar bills, spread them over my bed and roll around on them naked.

My God!! And I thought that I was the only one in the world who did that.

 

[jayc]

Online savings rates are just as good as CD's but you are tied up in a CD though.

Post where you get online saving at 3.2%.

Then use the money to put new streamers on your bike and buy some big boy pants with a zipper in the front. Post a picture when you have this done and we can continue. See ya.

 

[Texas Proud]

Well, its a Bond which means there is a risk factor. So you use this Bond for Emergency fund? If you need the money and the Bond is down then what?

What are you getting for AIG? The highest I've seen now is 1.15% APY on Savings. The checking ones has too many things you have to do to get a higher rate.

Yes, it is a bond fund with price swings... I just live with that since the rate is a lot better than cash...

I actually have never needed this for an emergency. I have a few thousand (well, I did until the wife spent it) in the AIG account and I use that first and would then go to the bond fund.... the price does not change enough to worry about IMO... when you are talking the difference in rate on $50K vs the small amount that I might lose if I ever take out that money... I will take that risk...

It is the AIG savings... not sure what the rate is now, but it has been below 1% earlier.... but I only keep a few thousand there so I am not concerned with the rate as much. IOW, a few bps on a few thousand is not that much....

 

[aida2003]

What about I-Bonds?

Not sure if you asked this as a serious question or just joking...You can buy it from the gov't treasury. It was max $10k allowed, but starting next year a person will be able to buy only $5k max...paper I-bonds are being phased out.

I'm still comtemplating whether to buy this month or wait for Nov.1 new rates.

 

[Mulligan]

Not sure if you asked this as a serious question or just joking...You can buy it from the gov't treasury. It was max $10k allowed, but starting next year a person will be able to buy only $5k max...paper I-bonds are being phased out.

I'm still comtemplating whether to buy this month or wait for Nov.1 new rates.

If you wait you pass up a guaranteed 4.6% yearly rate for 6 months. Once Nov. 1 hits you lock into the new rate which will probably be 3% give or take and lose the 4.6%. Better to lock in the 4.6% and then get the 3% ish for 6 months after you get the 4.6 for 6 months.

 

[aida2003]

If you wait you pass up a guaranteed 4.6% yearly rate for 6 months. Once Nov. 1 hits you lock into the new rate which will probably be 3% give or take and lose the 4.6%. Better to lock in the 4.6% and then get the 3% ish for 6 months after you get the 4.6 for 6 months.

If the next rate is going to be 3ish%, it sounds the inflation is really tamed...on paper.