I was going to mention similarly that VMFXX is at 4.78% right now. It's where I've been parking cash lately. The rate isn't locked like with a CD but I think we still have another rate hike or two on the horizon and we're not going to be seeing cuts for a bit.
I bond fixed rate 0.9%, I'm in!
Ouch, that sucks. I have my IRAs with Vanguard and they use VMFXX as the settlement fund for them. So pretty much everything is automatically in it that's not in fund or stock. My 401k has mostly Vanguard funds in it too and includes it too. Looks like I'm lucky on that front.I have a former employers 401K and it's actually a Roth but for some reason Vanguard won't let me put the money in VMFXX it's not in the approved list. They said I have to do some paperwork to get access to that fund.
A little annoying.
Savings Accounts that are supposed to be 5%: Five percent rates for savings accounts
I went to the Mango site listed in the list above, and they claim they are up to 6% rate on as little as $25 in an account.% is above market rates which means they are subsidizing it to attract depositors which is common. They admit to this on their site.
That's a novel approach. Lots of banks now are giving a lump-sum cashback bonus if you keep a balance of X for at least Y months, so this is similar. Say they honor the 6% for a year, that puts them on the hook for $150, not a bad investment to attract a lifelong customer.
I know I see many posts about an Apple Savings account that is either 4.15% through Goldman Sachs
Revisiting this. Capital One increased the 360 Savings rate to 3.4% on Friday. And I just discovered they have, for about 6 more weeks, an offering on a 11 month CD at 5%. So I just transferred 25K from my 360 savings to a new CD at 5%. It says that rate will stop being offered sometime in March. It's the best rate they have, the 2 year is 4.3, even the 5 year is only 4.1 so I jumped on the 11 month one.
I don't have a true "CD ladder" but as of now I have a CD that matures in Sep 2023 and then 2 newer ones that mature in Jan of 2024. My plan is to merge 2 of those in Jan probably into another CD(depending on rates) and put the one maturing in Sept, into my savings
So from Feb 4 being 3.4 to June 4 they bumped it again to an even 4. So up .6 in 4 months on the 360 savings. If I go back through this thread I was all excited when the 1 year CD hit 4 which was Oct 2022. 8 months later the high yield savings is at 4. I have a CD with them at 5 that ends in Jan, their highest right now is 1 year 4.75 so from Oct to now the 1 year CD rate has gone up .75 and the high yield savings has gone up 1.65!
We're moving around money now about to put some money in a Wells Fargo 5 month CD at 4.4%. It's already in Wells Fargo and we figure that rate is pretty darn good for 5 months.
At this point would it make more sense to put the money into a high yield savings since the percentages are close? I prefer to stay more to the liquid side if things are close and I don't think we're going to see a rate drop any time soon. There's already been rumblings that the Fed is going to raise rates in July, maybe 50 BP.
Complicated but Lucy wants to keep the money in Wells Fargo. We had it in a Wells Fargo managed brokerage account, the problem is we're on like our 5th manager with WF because they either keep leaving or getting reassigned, and our current manager, is in Wisconsin and we're in Sunnyvale CA. So we decided to close the brokerage account and put the money in a CD for 5 months.
I'm not 100% sure but I think we have about 20K in profit between initial deposit in 2017 and now. Some of that has already been taxed when they sold in prior years, but most of it hasn't so I'm figuring it makes sense to take that tax hit this year since I'm "retired" and not really earning much money now. So this is the right year to take the tax hit on the brokerage. IF I end up going back to work, which could happen, I'd still only have 6 months or so of earnings so better to take it this year.
To get the 4 percent in the high yield I have to move the money to Capital One, Lucy prefers it stay in WF and the best way to get interest is then a CD thus the 5 month one.
We're not trying to time the market we're at a point where if we retire soon or now, it becomes more valuable to us as cash since I'm only 57 1/2 so I can't start withdrawing from my IRA or 401K for 2 years without paying a penalty.
I do agree on the could go up. Lucy has a CD with WF right now herself that's getting 4.17 which comes out to 4.25, I think it's 11 months I forget. At that time the 5 month was not even close to 4.4. So if we do this now, in November we'll be again shopping for the highest CD rate unless we just decide screw it and retire in which case then the highest high yield.
Sorry wordy but that's the "logic" behind it.
Makes sense. Well, all except for the part about Lucy being loyal to WF.
From what you're saying it sounds like this will be a good year for you to harvest all of your gains. Do it while you're in the lower brackets due to not working.
Dang, those are above the 7 day yield on VMFXX now. It's at 5.26%. It's getting tempting.It looks like 12-18 months is the sweet spot on the yield curve right now. Brokered CD rates at Vanguard right now should be the same inventory at all brokers.
You must be registered for see images attach