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Recommendations on where to park $10K
09-29-2018, 03:59 PM
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#1
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Recycles dryer sheets
Join Date: Aug 2017
Posts: 207
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Recommendations on where to park $10K
I have a little over $10k sitting in a savings account earning next to nothing in interest. Although I don't anticipate needing this money any time soon, I want to keep it within reach should an emergency arise. Suggestions?
I don't have the stomach to put the money in the stock market at present. I don't want to put it in a CD that will leave the money out of reach for months at a time. Any good money market funds as an alternative? Something better?
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09-29-2018, 04:05 PM
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#2
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Recycles dryer sheets
Join Date: Nov 2011
Posts: 69
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For $10k and over, a Capital One 360 Money Market will offer you one of the best rates available.
I have one and they routinely adjust/increase the rate, currently at 1.85% APY.
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~Michele
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09-29-2018, 04:06 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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Do you consider high yield savings accounts yielding 1.9% or better to be “next to nothing”? Above that you have to lock up your money for a bit longer (or accept early withdrawal penalties) or take more risk.
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Retired since summer 1999.
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09-29-2018, 04:12 PM
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#4
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Full time employment: Posting here.
Join Date: Jun 2018
Location: Brisbane
Posts: 855
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geee!
that is a problem many have ( i would imagine )
i have my spare cash in an account that pays monthly interest ( it isn't much but every dollar counts ) but i can withdraw some or all at ant time
maybe an ETF the plays the money market ( but personally i don't like such products )
remember that extra fraction of income normally entails extra risk ( or expense )
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i hold the Australian listed versions of AU ( Anglo Ashanti ) , BHP , and JHG .
You must learn from the mistakes of others. You can't possibly live long enough to make them all yourself.
Samuel Levenson
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09-29-2018, 04:21 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,413
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https://www.depositaccounts.com/
I don't like Capital One. There are others that pay more and are easier to work with. Look at the various rates displayed at the above site.
Vanguard also offers very good rates on its' treasury money market fund and its' prime money market fund. Right now, slightly better than the savings accounts and money market funds in most cases.
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09-29-2018, 04:38 PM
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#6
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Recycles dryer sheets
Join Date: Feb 2017
Posts: 221
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I just put some in Marcus at 1.90% on Wednesday. It was credited the next day but the available balance is still zero. I started with a small amount because they say for the first 30 days they put longer holds on it.
After 30 days I'll put a larger chunk in as long as everything runs smoothly until then since it's online only--but FDIC insured, etc.
Did ACH transfer, no charges on either end (so far). I wasn't sure if Chase would charge to transfer $ out.
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09-29-2018, 04:42 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,351
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T-bills bought on the auction. If necessary they are easy to sell before maturity and you don't take much of a hit. Treasury bills are issued for terms of 4, 13, 26, and 52 weeks. Schwab, Fido, et al charge little or nothing to buy them for you.
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09-29-2018, 05:05 PM
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#8
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Recycles dryer sheets
Join Date: Aug 2017
Posts: 207
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Quote:
Originally Posted by audreyh1
Do you consider high yield savings accounts yielding 1.9% or better to be “next to nothing”? Above that you have to lock up your money for a bit longer (or accept early withdrawal penalties) or take more risk.
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That is indeed better than nothing. Realizing I want to retain easy access and liquidity, I realize that limits my returns. I appreciate the good suggestions that will maximize what I earn, even if it is minimal
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09-29-2018, 07:48 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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Vanguard Prime Money Market Fund (VMMXX) pays 2.1%, is totally liquid and infintesimal credit risk and no interest rate risk.
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If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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09-29-2018, 07:51 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
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Quote:
Originally Posted by pb4uski
Vanguard Prime Money Market Fund (VMMXX) pays 2.1%, is totally liquid and infintesimal credit risk and no interest rate risk.
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Has it gone up since the FED raise the rate last week?
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09-29-2018, 07:54 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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Dunno... website says 2.15% APR.... .05% higher than the last time that I looked sometime last week.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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09-29-2018, 08:09 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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I suspect it’s tracking something like the 3-month T-bill.
Note the none of the t-bills take an immediate jump when the Fed raises rates. They just gradually drift higher, and the 1 month and 3-month are lagging the Fed Funds rate at the moment.
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Retired since summer 1999.
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09-30-2018, 06:58 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,884
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Quote:
Originally Posted by firemediceric
I have a little over $10k sitting in a savings account earning next to nothing in interest. Although I don't anticipate needing this money any time soon, I want to keep it within reach should an emergency arise. Suggestions?
I don't have the stomach to put the money in the stock market at present. I don't want to put it in a CD that will leave the money out of reach for months at a time. Any good money market funds as an alternative? Something better?
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Online savings account or short term bond fund (like VFSTX).
For a sum of $10K, don't sweat small differences in interest/dividends. You're talking about tens of dollars per year.
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09-30-2018, 06:29 PM
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#14
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Recycles dryer sheets
Join Date: Jun 2010
Location: Sac suburb
Posts: 437
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There are also no-penalty CDs.
For $10,000, Ally's 11-month NP CD is currently paying 2.0%.
https://www.ally.com/bank/no-penalty-cd/
The money can be withdrawn any time after the first six days and you keep the accrued interest with no penalty.
Ally is very easy to deal with, imo. All of my transactions have been done online.
The caveat is, it's all-or-nothing, you can't make partial withdrawals from the CD. But since the current 2% tier is $5,000 to $24,999.99, you could open two CDs.
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09-30-2018, 06:42 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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^^^^ Doesn't sound attractive compared to VMMXX at 2.15% APR and totally liquid.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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09-30-2018, 06:49 PM
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#16
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Recycles dryer sheets
Join Date: Jun 2010
Location: Sac suburb
Posts: 437
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Quote:
Originally Posted by pb4uski
^^^^ Doesn't sound attractive compared to VMMXX at 2.15% APR and totally liquid.
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Correct. You win!
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10-01-2018, 08:24 AM
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#17
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Thinks s/he gets paid by the post
Join Date: Aug 2013
Location: North
Posts: 4,043
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Broker at VG. Take a little risk, have some fun. Maybe AAPL, AMZN or QQQ, VHT.
I always recommend VUG as someone's first ETF.
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Time > $$$ ~ 100% equities ~ FIRE @2031
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10-03-2018, 10:08 AM
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#19
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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My suggestion is not to put it all in to a single high yield savings account.
As I have mentioned on other threads, you can earn significantly more churning through bank account bonus offers. If you need to have a certain amount readily accessible and don't want to tie it up, take maybe half and put in to the very liquid savings account. Then, with the other half, use it to get bank account reward/bonus offers. With $5k, you could put it in to a Citibank account and get $200 in 60 days - that's 4% in just 2 months - double the amount you'd earn on it in a full year in a high yield savings account.
https://banking.citi.com/cbol/18/che...00/default.htm
There are many more out there like this, and you simply have to open the account, make sure you satisfy the requirements, collect your money, then close once you've collected and leave the account open long enough to avoid any early closure fees.
If you want the best one as far as bang for the buck, none beats the HSBC checking account - deposit $1500, receive $200 bonus 90 days later (they actually credit it within 8 weeks after the $1500 balance is maintained for 90 days).
https://www.us.hsbc.com/checking-acc...ecking-details
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10-03-2018, 10:32 AM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,299
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Quote:
Originally Posted by pb4uski
^^^^ Doesn't sound attractive compared to VMMXX at 2.15% APR and totally liquid.
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Yes, I use Fidelity's version at around 2.03%. Would use Vanguard, but have most of investments at Fidelity.
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TGIM
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