Citi eSavings MM now offering 5%

[MJ]

I remember inquiring in Jan 2005 about emigrant direct's 3% MM offering and now some MMs are offering 5%+.
I think ING started this online MM trend but has been left way behind with its paltry 4.25%.
Where are these rates heading to?

 

[kaudrey]

I hope they keep going up! I opened an e-savings account at Citi when they started it at 4.5% a few months ago. It's gone up twice since then.

I already banked with Citi anyway, so it was very easy to set up.

Karen

 

[Mwsinron]

I hope they dont keep going up :/ That means the fed is still raising rates.

 

[MJ]

HSBC, which I also have an account with, has just raised their's again to 5.05% or a .25%. Knowing that I would have a lot of cash after I sold my house I opened MM accounts at citi and HSBC to maximize my FDIC protection.

 

[Outtahere]

Emigrant Direct just raised their MM to 5% and their CDs to 5.35%

 

[cute fuzzy bunny]

4.95 for vanguard prime.

 

[LOL!]

4.95 for vanguard prime.

If you are in the 28% marginal income tax bracket, the Vanguard Tax-Exempt MM at 3.79% is like a before-tax yield of 5.26%!

 

[d]

and if you're in the 35% bracket, the yield is like 5.83! (unfortunately, for me, this is irrelevant.)

 

[brewer12345]

Heh, Schwab just dropped fees on treasury auctions, so I think I will be buying the occasioal 90 day bill at auction, given current rates.

 

[cute fuzzy bunny]

If you are in the 28% marginal income tax bracket, the Vanguard Tax-Exempt MM at 3.79% is like a before-tax yield of 5.26%!

I'm pretty close to the 0% tax bracket...

 

[d]

Schwab just dropped fees on treasury auctions, so I think I will be buying the occasioal 90 day bill at auction

why not treasury-direct?

 

[brewer12345]

why not treasury-direct?

I'll never be a big treasury investor, so its not worth setting up another account.