Where all my cash hoarders at and where do you park your savings?
Also, how do you decide how much cash to hold vs invest?
Personally I enrolled in Robinhood Gold for the 4.9% APY. It costs $5/month.
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Treasury yields aren’t that amazing right now. If you need it liquid, just find a HYS. Some short term CDs go over 5% if that’s liquid enough for you
VMFXX has a 7 day SEC yield of 5.28%.
I have about 80% in index funds and Roth IRA that I never plan on touching until way later. About 15% in Ally savings account at 4.5%, and the rest on hand. The nice thing about Ally is that you get the nice interest rate, and you can pull from that pretty easily.
I was super into chasing the highest possible saving accounts. I’ve always used this link when I was shopping.
I’ll say that it can be great to get a little higher % but there is also value in keep it simple. I think at my worst I had 7 entirely separate savings accounts (not counting checking or investing). I now have 2 and I’ll probably merge them in the next few months.
It would be good for you to consider your limits on what you’ll chase. If you find account that will give you an extra 0.1% it doesn’t make since to change but 2% likely does. However, if it’s 2% higher but it has a $500 limit maybe that doesn’t make since.
I’m now mainly using Ally and I really do like their bucket system.
Most of my savings is in IRAs, which are mostly invested in Vanguard index funds. I try to keep about what I’d need to live on for a year in short-term investments and high-yield savings, any extra in some longer-term investments. I have a couple of CDs, some T bills, an I bond, some stocks. I’ve been shifting money around lately depending on where the best interest rates are.
Bread Savings has a 4.88% rate (5% APY) right now, no fees. The T bills have rates between about 5.3% and 5.5%. Right now, even 4-week T bills have rates over 5%.
SNAXX is yielding 5.37%.
It really depends on why you’re holding the cash though- how long you plan on sitting on it. At some point it probably makes sense to lock in a longer duration t-bill/note.
I generally avoid holding cash unless there’s a specific spending goal in the next 3ish years.
I keep a little in a MMF for quick access and the rest in a treasury bill ETF (TFLO). My HYS account is nearly empty now.
