I researched 7 ways to park your cash savings to get a 4.5%+ yield....
The Money Cruncher, CPA@money_cruncher
34 views
Jan 02, 2025
~2 min read
Advertisement
1
I researched 7 ways to park your cash savings to get a 4.5%+ yield.
Don't let banks pay you 0-2%.
Here's the list:
Don't let banks pay you 0-2%.
Here's the list:
2
1. Money Market Funds (MMF) - 4.54%
MMF is a mutual fund that invests in short term govt obligations..
Not FDIC insured.
Vanguard - $VMFXX (4.54%)
Fidelity - $SPAXX (4.26%)
Schwab - $SNSXX (4.26%)
MMF is a mutual fund that invests in short term govt obligations..
Not FDIC insured.
Vanguard - $VMFXX (4.54%)
Fidelity - $SPAXX (4.26%)
Schwab - $SNSXX (4.26%)
3
2. Treasury Bill ladder - 4.35%
If you want to buy T-Bills directly and avoid expense ratios of ETFs, T-bill ladder is a great choice.
It's a strategy to spread your money across several T-bills with different maturity dates to improve liquidity.
If you want to buy T-Bills directly and avoid expense ratios of ETFs, T-bill ladder is a great choice.
It's a strategy to spread your money across several T-bills with different maturity dates to improve liquidity.
4
3. $SGOV - 4.50%
If you don't want to buy T-bills directly, the iShares 0-3 Month Treasury Bond ETF can be a good choice.
It's state and local tax exempt.
You can also buy the Treasury MMF at Vanguard ($VUSXX), Fidelity or Schwab.
If you don't want to buy T-bills directly, the iShares 0-3 Month Treasury Bond ETF can be a good choice.
It's state and local tax exempt.
You can also buy the Treasury MMF at Vanguard ($VUSXX), Fidelity or Schwab.
5
4. High Yield Saving Account - 4.5%+
HYSA is also a great way to park your money.
Some FDIC insured options:
- Newtek Bank - 4.90%
- Brio Direct- 4.85%
- Peak Bank - 4.75%
- My Banking Direct - 4.65%
- CIT Bank - 4.55%
HYSA is also a great way to park your money.
Some FDIC insured options:
- Newtek Bank - 4.90%
- Brio Direct- 4.85%
- Peak Bank - 4.75%
- My Banking Direct - 4.65%
- CIT Bank - 4.55%
6
5. Certificate of Deposit (CD) - 4.6-5%
A CD is a savings account where you agree to keep your money in the account for a set period of time.
It is FDIC insured
Example:
• First Bank of The Lake 7 month CD - 5%
A CD is a savings account where you agree to keep your money in the account for a set period of time.
It is FDIC insured
Example:
• First Bank of The Lake 7 month CD - 5%
7
6. $USFR ~ 4.52% yield
USFR is a Treasury ETF holding floating rate notes (FRN).
It holds a group of 2 year FRNs and pays out a monthly yield.
State and local tax exempt.
USFR is a Treasury ETF holding floating rate notes (FRN).
It holds a group of 2 year FRNs and pays out a monthly yield.
State and local tax exempt.
8
7. I-bonds - 3.11%
The interest rate on a Series I savings bond changes every 6 months, based on inflation.
The interest is received when you cash in the bond.
You can buy it directly from TreasuryDirect. Taxes are deferred until cashed.
The interest rate on a Series I savings bond changes every 6 months, based on inflation.
The interest is received when you cash in the bond.
You can buy it directly from TreasuryDirect. Taxes are deferred until cashed.
9
Keep in mind that for many of these options, the yield will decrease as rates go down in the future.
They are typically not good long-term holdings and should only be used for emergency funds or savings for future big purchases.
They are typically not good long-term holdings and should only be used for emergency funds or savings for future big purchases.
10
Each of the options has different attributes (taxation, liquidity, insurance), so it's important to analyze your risk comfort and personal circumstances to decide which option makes the most sense.
11
The current U.S. savings rate average is 0.43%, so please:
1. retweet the first tweet, so more people learn about these options
2. follow @money_cruncher
1. retweet the first tweet, so more people learn about these options
2. follow @money_cruncher
12
Want to build wealth?
Join 10,700 readers of The Crunch, my weekly newsletter, it’s free: TheCrunch.co
Join 10,700 readers of The Crunch, my weekly newsletter, it’s free: TheCrunch.co
