Choosing HYSA

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vss317
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Choosing HYSA

Post by vss317 »

I cannot decide on a HYSA with all the options out there. One of our kiddos is transitioning to public school soon and that means no more day care expenses. My wife and I want to take the day care cost and transition it to a savings account to finally build something more solid up for home projects, vacations, etc. Open to suggestions but I've narrowed it down some:

Ally
Marcus
Redneck Bank (have always liked these rates but I don't see much talk about them)

Any help is appreciated, thank you in advance.

VSS
JD09
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Re: Choosing HYSA

Post by JD09 »

I have Ally and Marcus.

I prefer Ally - their year end tax forms are better. My biggest issue with Marcus is you cannot login to your accounts when outside US.
calwatch
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Re: Choosing HYSA

Post by calwatch »

Ally is good if you want check writing. The Ally money market account includes free checks. Currently they pay the same rate, although historically the money market account has had about a quarter point difference from the online savings account rate. But you could write a check and move the funds over the same day on the app so the difference wasn't significant.

SoFi, if you are willing to do direct deposit, is paying 1.25% and also offers check writing. Redneck Bank (and other banks in the Huckaby family) used to be competitive but haven't been since the pandemic. They dropped their rates with the others and haven't gone back up.

If ATM access or cash deposit availability is important to you I would also consider Alliant Credit Union. Their rates are as competitive as Ally but you can make cash deposits and withdrawals at any Co-Op Network ATM. They will also reimburse ATM fees up to $10 a month. They generally only adjust rates once a month, but this month made a special adjustment to match the other large online savings accounts at 1%.

The liquid account survey on Deposit Accounts is updated bi-weekly and is a good source of info. https://www.depositaccounts.com/blog/ba ... ts-survey/
professor_americus
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Re: Choosing HYSA

Post by professor_americus »

The buckets feature in Ally is convenient for keeping track of savings designated for specific purposes.
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Kevin M
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Re: Choosing HYSA

Post by Kevin M »

Vanguard money market funds have higher yields than Ally savings, so I prefer them now for savings.
If I make a calculation error, #Cruncher probably will let me know.
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vss317
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Re: Choosing HYSA

Post by vss317 »

Kevin M wrote: Mon Jun 27, 2022 4:38 pm Vanguard money market funds have higher yields than Ally savings, so I prefer them now for savings.
I have my IRA with them, but to do this I would have to open another account with them right?
wbarabas
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Re: Choosing HYSA

Post by wbarabas »

Comenity bank is at 1.65% currently. No issues and easy to use. Fast transfers with ACH.
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vss317
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Re: Choosing HYSA

Post by vss317 »

wbarabas wrote: Mon Jun 27, 2022 5:11 pm Comenity bank is at 1.65% currently. No issues and easy to use. Fast transfers with ACH.
That's a new one to me. How long have you been a customer? Have the rates been pretty competitive throughout your time with them?
wbarabas
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Re: Choosing HYSA

Post by wbarabas »

vss317 wrote: Mon Jun 27, 2022 5:27 pm
wbarabas wrote: Mon Jun 27, 2022 5:11 pm Comenity bank is at 1.65% currently. No issues and easy to use. Fast transfers with ACH.
That's a new one to me. How long have you been a customer? Have the rates been pretty competitive throughout your time with them?
Been there a few years. They are fdic insured. I initially got started there because they had the best cd rates a couple years ago. They are always competitive and their rates jump within a few days of the feds raising rates. Their cd rates are still very good. They are a part or bread financial. It's all online but their app is simple to use and they even have phone support for questions.
jebmke
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Re: Choosing HYSA

Post by jebmke »

vss317 wrote: Mon Jun 27, 2022 4:40 pm
Kevin M wrote: Mon Jun 27, 2022 4:38 pm Vanguard money market funds have higher yields than Ally savings, so I prefer them now for savings.
I have my IRA with them, but to do this I would have to open another account with them right?
Yes, but it isn’t hard to do.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
letahl
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Re: Choosing HYSA

Post by letahl »

Kevin M wrote: Mon Jun 27, 2022 4:38 pm Vanguard money market funds have higher yields than Ally savings, so I prefer them now for savings.
Yeah I just went through all the threads on this only to realize I don't need a hysa I can just park the money in my vanguard money market fund.
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vss317
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Re: Choosing HYSA

Post by vss317 »

letahl wrote: Mon Jun 27, 2022 5:36 pm
Kevin M wrote: Mon Jun 27, 2022 4:38 pm Vanguard money market funds have higher yields than Ally savings, so I prefer them now for savings.
Yeah I just went through all the threads on this only to realize I don't need a hysa I can just park the money in my vanguard money market fund.
I can look it up but is there a minimum needed?
retired-early
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Re: Choosing HYSA

Post by retired-early »

wbarabas wrote: Mon Jun 27, 2022 5:11 pm Comenity bank is at 1.65% currently. No issues and easy to use. Fast transfers with ACH.
I just opened a joint account there this past weekend. Super easy and it was opened in a few minutes. A few others I considered were so complicated or restricted I gave up. Getting ready to transfer my emergency fund out of Ally.
exodusNH
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Re: Choosing HYSA

Post by exodusNH »

vss317 wrote: Mon Jun 27, 2022 5:52 pm
letahl wrote: Mon Jun 27, 2022 5:36 pm
Kevin M wrote: Mon Jun 27, 2022 4:38 pm Vanguard money market funds have higher yields than Ally savings, so I prefer them now for savings.
Yeah I just went through all the threads on this only to realize I don't need a hysa I can just park the money in my vanguard money market fund.
I can look it up but is there a minimum needed?
No, it's your settlement fund.
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Kevin M
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Re: Choosing HYSA

Post by Kevin M »

vss317 wrote: Mon Jun 27, 2022 5:52 pm
letahl wrote: Mon Jun 27, 2022 5:36 pm
Kevin M wrote: Mon Jun 27, 2022 4:38 pm Vanguard money market funds have higher yields than Ally savings, so I prefer them now for savings.
Yeah I just went through all the threads on this only to realize I don't need a hysa I can just park the money in my vanguard money market fund.
I can look it up but is there a minimum needed?
Federal Money Market is the settlement fund for a brokerage account, so no minimum for that. It currently has the highest SEC yield of the VG MM funds, at 1.38%. This is likely to be even higher if you pay state income tax, since about 70% of the income was exempt from state income tax last year. We don't know exactly what it will be for 2022.

Kevin
If I make a calculation error, #Cruncher probably will let me know.
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anon_investor
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Re: Choosing HYSA

Post by anon_investor »

exodusNH wrote: Mon Jun 27, 2022 7:20 pm
vss317 wrote: Mon Jun 27, 2022 5:52 pm
letahl wrote: Mon Jun 27, 2022 5:36 pm
Kevin M wrote: Mon Jun 27, 2022 4:38 pm Vanguard money market funds have higher yields than Ally savings, so I prefer them now for savings.
Yeah I just went through all the threads on this only to realize I don't need a hysa I can just park the money in my vanguard money market fund.
I can look it up but is there a minimum needed?
No, it's your settlement fund.
For anyone with a Vanguard taxable brokerage account, using the settlement fund (VFMXX) is easy (no new accounts to make and no minimum) and pays 1.38%. Plus some of the interest may be exempt from state income tax.
candb
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Re: Choosing HYSA

Post by candb »

anon_investor wrote: Mon Jun 27, 2022 7:22 pm
exodusNH wrote: Mon Jun 27, 2022 7:20 pm
vss317 wrote: Mon Jun 27, 2022 5:52 pm
letahl wrote: Mon Jun 27, 2022 5:36 pm
Kevin M wrote: Mon Jun 27, 2022 4:38 pm Vanguard money market funds have higher yields than Ally savings, so I prefer them now for savings.
Yeah I just went through all the threads on this only to realize I don't need a hysa I can just park the money in my vanguard money market fund.
I can look it up but is there a minimum needed?
No, it's your settlement fund.
For anyone with a Vanguard taxable brokerage account, using the settlement fund (VFMXX) is easy (no new accounts to make and no minimum) and pays 1.38%. Plus some of the interest may be exempt from state income tax.
Or for anyone with an E-Trade account...though there's a $3k minimum on initial purchase. Some of the other brokers might also offer VFMXX with no loads or transaction fees.
letahl
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Re: Choosing HYSA

Post by letahl »

vss317 wrote: Mon Jun 27, 2022 5:52 pm
letahl wrote: Mon Jun 27, 2022 5:36 pm
Kevin M wrote: Mon Jun 27, 2022 4:38 pm Vanguard money market funds have higher yields than Ally savings, so I prefer them now for savings.
Yeah I just went through all the threads on this only to realize I don't need a hysa I can just park the money in my vanguard money market fund.
I can look it up but is there a minimum needed?
No. The yield was better than any of the non weird hysa options.
letahl
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Re: Choosing HYSA

Post by letahl »

anon_investor wrote: Mon Jun 27, 2022 7:22 pm
exodusNH wrote: Mon Jun 27, 2022 7:20 pm
vss317 wrote: Mon Jun 27, 2022 5:52 pm
letahl wrote: Mon Jun 27, 2022 5:36 pm
Kevin M wrote: Mon Jun 27, 2022 4:38 pm Vanguard money market funds have higher yields than Ally savings, so I prefer them now for savings.
Yeah I just went through all the threads on this only to realize I don't need a hysa I can just park the money in my vanguard money market fund.
I can look it up but is there a minimum needed?
No, it's your settlement fund.
For anyone with a Vanguard taxable brokerage account, using the settlement fund (VFMXX) is easy (no new accounts to make and no minimum) and pays 1.38%. Plus some of the interest may be exempt from state income tax.
Yes, this is the one I was talking about. If you already have Vanguard it makes the most sense. As someone pointed out on another thread you wouldn't keep money you might need to bail someone out of jail tonight, but you could keep money to bail someone out later in the week.
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vss317
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Re: Choosing HYSA

Post by vss317 »

letahl wrote: Mon Jun 27, 2022 8:08 pm
anon_investor wrote: Mon Jun 27, 2022 7:22 pm
exodusNH wrote: Mon Jun 27, 2022 7:20 pm
vss317 wrote: Mon Jun 27, 2022 5:52 pm
letahl wrote: Mon Jun 27, 2022 5:36 pm

Yeah I just went through all the threads on this only to realize I don't need a hysa I can just park the money in my vanguard money market fund.
I can look it up but is there a minimum needed?
No, it's your settlement fund.
For anyone with a Vanguard taxable brokerage account, using the settlement fund (VFMXX) is easy (no new accounts to make and no minimum) and pays 1.38%. Plus some of the interest may be exempt from state income tax.
Yes, this is the one I was talking about. If you already have Vanguard it makes the most sense. As someone pointed out on another thread you wouldn't keep money you might need to bail someone out of jail tonight, but you could keep money to bail someone out later in the week.
So I can start another account with Vanguard, since I have my IRA there this would be a taxable account right? Then simply put money into the settlement fund and not invest it anything else? Just simple as that?
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anon_investor
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Re: Choosing HYSA

Post by anon_investor »

vss317 wrote: Mon Jun 27, 2022 8:13 pm
letahl wrote: Mon Jun 27, 2022 8:08 pm
anon_investor wrote: Mon Jun 27, 2022 7:22 pm
exodusNH wrote: Mon Jun 27, 2022 7:20 pm
vss317 wrote: Mon Jun 27, 2022 5:52 pm

I can look it up but is there a minimum needed?
No, it's your settlement fund.
For anyone with a Vanguard taxable brokerage account, using the settlement fund (VFMXX) is easy (no new accounts to make and no minimum) and pays 1.38%. Plus some of the interest may be exempt from state income tax.
Yes, this is the one I was talking about. If you already have Vanguard it makes the most sense. As someone pointed out on another thread you wouldn't keep money you might need to bail someone out of jail tonight, but you could keep money to bail someone out later in the week.
So I can start another account with Vanguard, since I have my IRA there this would be a taxable account right? Then simply put money into the settlement fund and not invest it anything else? Just simple as that?
Yep, a taxable brokerage account. Just know that you can't immediately transfer out funds you transfer in, I think there is a week or so hold period, and after that it takes maybe a day or two to receive in your bank after you initiate the transfer out. So this shouldn't be money you might need for a couple of weeks initially.
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Re: Choosing HYSA

Post by sowhatsnext »

wbarabas wrote: Mon Jun 27, 2022 5:31 pm
vss317 wrote: Mon Jun 27, 2022 5:27 pm
wbarabas wrote: Mon Jun 27, 2022 5:11 pm Comenity bank is at 1.65% currently. No issues and easy to use. Fast transfers with ACH.
That's a new one to me. How long have you been a customer? Have the rates been pretty competitive throughout your time with them?
Been there a few years. They are fdic insured. I initially got started there because they had the best cd rates a couple years ago. They are always competitive and their rates jump within a few days of the feds raising rates. Their cd rates are still very good. They are a part or bread financial. It's all online but their app is simple to use and they even have phone support for questions.
Also, Comenity/Breadfinancial's 1-year High Yield CD is at 2.5% vs ALLY's at 1.75%
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Re: Choosing HYSA

Post by AerialWombat »

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Re: Choosing HYSA

Post by MikeG62 »

wbarabas wrote: Mon Jun 27, 2022 5:11 pm Comenity bank is at 1.65% currently. No issues and easy to use. Fast transfers with ACH.
Reviews on Deposit accounts would give me pause.

https://www.depositaccounts.com/banks/b ... ncial.html

Seems transferring large amounts out is problematic.

No mention in the reviews that this can be solved by initiating the transfer from the other side and pulling the funds. Doesn't mean it is not a workaround, but did not see mention of it.
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Re: Choosing HYSA

Post by vaylie »

Edit: Recommendation retracted.
Last edited by vaylie on Sun Jan 21, 2024 4:58 am, edited 1 time in total.
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Re: Choosing HYSA

Post by Bluemnatra »

AerialWombat wrote: Tue Jun 28, 2022 8:00 am If you’re just going to open a brokerage account instead, then consider Treasury bills at auction. 6-month T-bills are about 2.48%.
Is that the rate earned in 6 months or is the advertised rate for 12 months?
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Re: Choosing HYSA

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Re: Choosing HYSA

Post by atdharris »

I have used Marcus for the last two years and am pleased with it. They tend to be on the higher end of what rates they offer and tend to raise rates faster than most others. You can get higher rates if you jump through some hoops at other banks, but I don't have time to do that
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Re: Choosing HYSA

Post by 8foot7 »

I would not put any funds with Ally that you might need to get out with less than two weeks' notice. Do a forum search for Ally wire transfers as well as Ally ACH transfers; various rules around the timeframes you can receive funds via ACH and while you might expect wires to be a same-day service, it's closer to "same day the day they get around to doing it" which could have a significant effect on your transactions.
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Re: Choosing HYSA

Post by anon_investor »

8foot7 wrote: Tue Jun 28, 2022 10:33 am I would not put any funds with Ally that you might need to get out with less than two weeks' notice. Do a forum search for Ally wire transfers as well as Ally ACH transfers; various rules around the timeframes you can receive funds via ACH and while you might expect wires to be a same-day service, it's closer to "same day the day they get around to doing it" which could have a significant effect on your transactions.
I don't know what the daily limits are, but I have never had any issue with getting money out from Ally via ACH. At least once a year I move $10k-$25k via ACH (pulled via my brokerage) without any issue.
wbarabas
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Re: Choosing HYSA

Post by wbarabas »

MikeG62 wrote: Tue Jun 28, 2022 8:13 am
wbarabas wrote: Mon Jun 27, 2022 5:11 pm Comenity bank is at 1.65% currently. No issues and easy to use. Fast transfers with ACH.
Reviews on Deposit accounts would give me pause.

https://www.depositaccounts.com/banks/b ... ncial.html

Seems transferring large amounts out is problematic.

No mention in the reviews that this can be solved by initiating the transfer from the other side and pulling the funds. Doesn't mean it is not a workaround, but did not see mention of it.
A few years ago I transferred about 15k to my bank acct to purchase a used car. It only took 1 day to process. Not sure what they consider a large amount but to me that was a big expense but was easy.
I had their cds in the past and 1 phone call to roll over to my hysa was all it took when the time was up.
I think their 1 year will be even better after the next 2 fed rate hikes.
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Re: Choosing HYSA

Post by MikeG62 »

8foot7 wrote: Tue Jun 28, 2022 10:33 am I would not put any funds with Ally that you might need to get out with less than two weeks' notice. Do a forum search for Ally wire transfers as well as Ally ACH transfers; various rules around the timeframes you can receive funds via ACH and while you might expect wires to be a same-day service, it's closer to "same day the day they get around to doing it" which could have a significant effect on your transactions.
I think this depends on how long you’ve had the account opened and how often you use it and move funds around.

I’ve been with Ally ~15 years and have no issue ACH’ing funds the next business day. Marcus is even better doing same day ACH’s if initiated in the morning. Of course with Marcus you can wire the funds same day at no fee as well.
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MikeG62
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Re: Choosing HYSA

Post by MikeG62 »

anon_investor wrote: Tue Jun 28, 2022 10:48 am
8foot7 wrote: Tue Jun 28, 2022 10:33 am I would not put any funds with Ally that you might need to get out with less than two weeks' notice. Do a forum search for Ally wire transfers as well as Ally ACH transfers; various rules around the timeframes you can receive funds via ACH and while you might expect wires to be a same-day service, it's closer to "same day the day they get around to doing it" which could have a significant effect on your transactions.
I don't know what the daily limits are, but I have never had any issue with getting money out from Ally via ACH. At least once a year I move $10k-$25k via ACH (pulled via my brokerage) without any issue.
I routinely move low five figure amounts and periodically mid five figure and low six figure amounts. Not once a delay in processing.
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anon_investor
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Re: Choosing HYSA

Post by anon_investor »

MikeG62 wrote: Tue Jun 28, 2022 12:13 pm
anon_investor wrote: Tue Jun 28, 2022 10:48 am
8foot7 wrote: Tue Jun 28, 2022 10:33 am I would not put any funds with Ally that you might need to get out with less than two weeks' notice. Do a forum search for Ally wire transfers as well as Ally ACH transfers; various rules around the timeframes you can receive funds via ACH and while you might expect wires to be a same-day service, it's closer to "same day the day they get around to doing it" which could have a significant effect on your transactions.
I don't know what the daily limits are, but I have never had any issue with getting money out from Ally via ACH. At least once a year I move $10k-$25k via ACH (pulled via my brokerage) without any issue.
I routinely move low five figure amounts and periodically mid five figure and low six figure amounts. Not once a delay in processing.
I have done 6 figure wire transfers from Ally a few times for home down payments before without issue. Depending if I submit the request online early enough it is either same day or the next business day. Although, I have always sent the money to an escrow account and it is usually done a few days in advance of closing, so I have been in a situation where it HAD to get there same day.
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Re: Choosing HYSA

Post by cockersx3 »

AerialWombat wrote: Tue Jun 28, 2022 8:00 am If you’re just going to open a brokerage account instead, then consider Treasury bills at auction. 6-month T-bills are about 2.48%.
Yep. I'm seriously thinking about doing this as well. Seems like a pretty easy way to earn more than the typical HYSA, at least for money that you would not need immediately (ie beyond a basic emergency fund and / or working cash). And if there is a real emergency for which the money is actually needed, I believe they can be sold on the secondary market so you're not totally losing the liquidity.
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Re: Choosing HYSA

Post by exodusNH »

cockersx3 wrote: Tue Jun 28, 2022 2:30 pm
AerialWombat wrote: Tue Jun 28, 2022 8:00 am If you’re just going to open a brokerage account instead, then consider Treasury bills at auction. 6-month T-bills are about 2.48%.
Yep. I'm seriously thinking about doing this as well. Seems like a pretty easy way to earn more than the typical HYSA, at least for money that you would not need immediately (ie beyond a basic emergency fund and / or working cash). And if there is a real emergency for which the money is actually needed, I believe they can be sold on the secondary market so you're not totally losing the liquidity.
Correct, you can sell on the secondary market very easily, but like any other bond, you've got interest rate risk that might mean you're receiving less than you paid.
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vss317
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Re: Choosing HYSA

Post by vss317 »

This is all really good information and I appreciate it. I talked to my wife and think what we're going to shoot for is a small amount in cash at one of our current banks, probably Chase because they are everywhere. Then next start a taxable Vanguard account, I like the idea of keeping things with Vanguard since I already have my IRA there. So I'll just do the settlement fund mentioned in a previous post. And finally, when we are comfy with the amount in the settlement fund, I'll look into the bonds or expanding the taxable account. I've always been interested in I-Bonds, just never had the money to do it. Kiddos day care is expensive!!!

Again, thanks for the help.
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Re: Choosing HYSA

Post by skip22 »

SoFi has emailed me that their interest rate (with direct deposit) has gone up to 1.5% .
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