Cash

[Shredder]

Where do you stash cash? Well not exactly cash money in greenbacks, but easy to access money that I can turn into cash.

I have a few hundred in a local credit union, and somewhere between 10-20 thousand in a vanguard money market account. I auto transfer out of that VG account for reoccurring bills. And I use it as a slush fund if I ever need it. Maybe once every couple years i need it for that. But I have a lot more than I normally need in that account, especially since it does pay much in interest.

Is there a better way? Should I just lower my mm account totals?

 

[RE2Boys]

Discover High Yield savings account linked to a Discover Checking account with Billpay. Move funds from savings to checking (limit six times a month) as needed to pay bills.

 

[racy]

I use an Ally Bank savings account, currently paying 1.8%
https://www.ally.com/bank/online-savings-account/

 

[COcheesehead]

I use a Fido prime MM FZDXX that pays about 2%. Transfer in and out as needed. Rarely keep any "cash", not even in my wallet. Today it pays to use a cash back credit card and to stash funds in higher yielding MM instruments.

 

[Dtail]

Mix of racy/COcheesehead.
Ally Bank and Fidelity FZDXX mm fund.

 

[OldShooter]

T-bills bought on the auction probably yield a little more and they are highly liquid/you won't lose much if you have to sell one prior to maturity. Schwab, at least, doesn't charge any fees for this unless you talk to a person. Then it's $25 IIRC.

 

[523HRR]

Synchrony Bank 1.90%

 

[corn18]

I tried to answer simply and then got cornfused.

I stash $360 in the safe (0%)
I stash 1 mo. expenses in my my daily checking account (0.2%)
I stash 6 mo. expenses in my brokerage money market account (1.86%)

 

[GravitySucks]

Two or three months expenses in checking account.
A few more months in a short term bond fund.
About a year's worth of non discretionary spending worth in the bond ladder comes due every year.
About $3,000,000 in greenback dollars and gold buried in mason jars in the back years....

 

[audreyh1]

Much cash is in high yield savings accounts, and additional in CDs.

We have a bank checking account and a Fidelity cash management account, but beyond that we try to find higher yielding places to stash our cash.

We have monthly transfers from high yield savings to the bank checking and Fidelity cash management accounts to pay off credit cards and scheduled bills.

 

[njhowie]

I say take a small bit of that money and play the bank bonus/reward game - your return will be many times the rate in any savings account and most times you don't have to do much more than move some digital money around.

The HSBC checking account was my favorite - put $1500 in, leave it there for 90 days, then they give you $200 cash. I believe the account needed to stay open for 6 months to avoid early close fee, but for that kind of return on such a small amount, it's hard to beat. When my 6 months came up, I simply EFT'd out to my bank to zero the balance, did online chat with their customer service, and they closed the account without any hassle. No fees at any time.

https://www.us.hsbc.com/checking-ac...96&gclid=CPnh5v-h2dwCFU7Uswod0cwCGA&gclsrc=ds

You can check for other offers like this at nerdwallet ( https://www.nerdwallet.com/blog/banking/best-bank-bonuses-promotions/ ) or hustlermoneyblog ( You are being redirected... ).

Keep the bulk of that money safe in the high yield savings or money market account, but definitely take a portion and grab what these bonus offers are serving up - it's free money, many times more than the savings/MM pays and no risk.

 

[audreyh1]

Synchrony Bank 1.90%

Are you rounding up? Synchrony Bank high yield savings is 1.85%.

 

[street]

Two or three months expenses in checking account.
About $3,000,000 in greenback dollars and gold buried in mason jars in the back years....

I like the mason jar comment. LOL Is it true?

 

[97guns]

I use gold

 

[523HRR]

Are you rounding up? Synchrony Bank high yield savings is 1.85%.

Used a promo code when opened account providing additional 0.05% interest.

 

[GravitySucks]

I like the mason jar comment. LOL Is it true?

Of course.
Would a stranger on the internet lie to you?

[emoji23]Wish it was[emoji1]

 

[Car-Guy]

Much cash is in high yield savings accounts, and additional in CDs.

We have a bank checking account and a Fidelity cash management account, but beyond that we try to find higher yielding places to stash our cash.

We have monthly transfers from high yield savings to the bank checking and Fidelity cash management accounts to pay off credit cards and scheduled bills.

I'm not laughing at you since I do much the same thing, especially since I have a lot in CD's, but it "cracks me up" when I see, hear or read anything about "high yield" accounts these days. I guess I just remember the days of 14 to 17% on CD's....

 

[hesperus]

I use a Fido prime MM FZDXX that pays about 2%. Transfer in and out as needed. Rarely keep any "cash", not even in my wallet. Today it pays to use a cash back credit card and to stash funds in higher yielding MM instruments.

To be clear, this fund is not FDIC insured, and could in a rare market event, even have liquidity problems. You'll probably argue that it will never happen, and it probably won't, but the fact is that these sort of funds do carry a small degree of risk with them. That being said, I keep some cash in FZDXX and some in FDIC insured savings accounts.

 

[Chuckanut]

To be clear, this fund is not FDIC insured, and could in a rare market event, even have liquidity problems. You'll probably argue that it will never happen, and it probably won't, but the fact is that these sort of funds do carry a small degree of risk with them. That being said, I keep some cash in FZDXX and some in FDIC insured savings accounts.

Good points.

One can find MM funds that invest in US Treasury obligations. While not insured, they certainly reduce the risk factor compared to other types of bonds.

 

[brewer12345]

I mostly use a CD ladder for reserve cash. Its not a strict ladder, just reasonably spread out for the best yield I can get going out to 5 years with a modest surrender penalty. More liquid money lately has been going into the Schwab taxable money fund. At some point I will probably start buying T bills simply to pick up a little yield.

 

[Another Reader]

T Bills and Social Security for the win in high tax California! Neither one is taxable.

 

[Momcpa]

Following this thread to help me make some short term decisions about 'extra' cash. Thanks.

 

[Scuba]

I use a Fido prime MM FZDXX that pays about 2%. Transfer in and out as needed. Rarely keep any "cash", not even in my wallet. Today it pays to use a cash back credit card and to stash funds in higher yielding MM instruments.

Ditto

 

[GravitySucks]

Following this thread to help me make some short term decisions about 'extra' cash. Thanks.

I always keep my extra cash with my spare change.

 

[skipro33]

I keep a minimum $15K in my checking account, $5K in cash vacuum sealed and hidden on my property secure enough to survive a fire (home burned totally in a wild land fire in 2006, along with my ID and I played hell getting access to my banking or even a replacement driver license until I secured a copy of my birth certificate) and anywhere from $200 to $500 n my wallet.

When deals come up, I'm ready.