Happiness of Rising FI Interest Rates

[Andre1969]

It might be slightly riskier, in the sense that the interest rate can change more quickly, but I parked some money in MMAs. One of them, with American Century, is currently paying something like 4.7%. I have one with Janus, and one with Schwab as well, and I think they're all close.

**Edit: those last two posts slipped in while I was typing, but that was kind of my sentiment, as well. In addition to my own investments, my uncle has been letting me handle his. He came into a decent chunk of money late last year, when we sold the old family homestead. At first, I had planned on just getting him some CDs, opening a new one roughly every three months, so that they don't all come due at once. But then once MMA rates shot up, I figured let's just dump it in there for the time being. And as an added bonus, he also has quicker access to the money, should the need arise.

 

[audreyh1]

P

But less than the 4.9% or so that MM funds are paying.

I’m just pointing out what’s available at Ally which beats the other savings rates quoted by the poster.

What's the rationale behind choosing high yielding savings account vs putting it in a treasury money market fund that yields 4.8%?

Personally I always keep a good chunk at several banks even if MM are paying higher rates - savings and CDs. I like to have my cash spread around. You never know what kind of S will HTF so I don’t like to concentrate. Fortunately I snapped up several Ally no penalty CDs a month or so ago when they were offering 4.75% - that offer didn’t last long. I also have lots in T-bills and various MM funds.