which high yield savings account?

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Topic Author
macobow
Posts: 5
Joined: Mon Feb 03, 2014 1:18 pm

which high yield savings account?

Post by macobow »

I have had this money market account for quite some time. Now it pays 1.87 APY. I want to put at least $10K into high yield savings. Considering current noise about banking turmoil..... what about UFB Direct preferred savings at 5.02 APY or Salem Five Direct E-one at 4.1 APY? Both are FDIC insured. Would this be a good move on my part or bad? I guess it's a no brainer but i'm not entirely sure.
steadyosmosis
Posts: 975
Joined: Mon Dec 26, 2022 11:45 am

Re: which high yield savings account?

Post by steadyosmosis »

macobow wrote: Thu Mar 23, 2023 12:44 pm I have had this money market account for quite some time. Now it pays 1.87 APY. I want to put at least $10K into high yield savings. Considering current noise about banking turmoil..... what about UFB Direct preferred savings at 5.02 APY or Salem Five Direct E-one at 4.1 APY? Both are FDIC insured. Would this be a good move on my part or bad? I guess it's a no brainer but i'm not entirely sure.
Many people use Ally online savings, and I have in the past.
I have no complaints against Ally.
But I've since decided I dislike paying taxes on interest (ordinary income), so now I hold hardly any cash in taxable accounts.
Age<59.5. Early-retired. AA ~55/45. Taxable account, Roth IRA, HSA...all are 100% equities. 100% of fixed income is in tIRA. I spend from taxable and re-balance in tIRA.
Harmanic
Posts: 935
Joined: Mon Apr 04, 2022 10:19 am

Re: which high yield savings account?

Post by Harmanic »

macobow wrote: Thu Mar 23, 2023 12:44 pm I have had this money market account for quite some time. Now it pays 1.87 APY. I want to put at least $10K into high yield savings. Considering current noise about banking turmoil..... what about UFB Direct preferred savings at 5.02 APY or Salem Five Direct E-one at 4.1 APY? Both are FDIC insured. Would this be a good move on my part or bad? I guess it's a no brainer but i'm not entirely sure.
Yes, it is a no-brainer!

I don't understand why anyone still has money in low yield savings accounts. Both alternatives are fine. There are many places offering HYSA and CDs over 5% now and almost all of them are FDIC insured.
Last edited by Harmanic on Thu Mar 23, 2023 12:53 pm, edited 1 time in total.
The question isn't at what age I want to retire, it's at what income. | - George Foreman
Living Free
Posts: 822
Joined: Thu Jul 19, 2018 7:31 pm

Re: which high yield savings account?

Post by Living Free »

Particularly if you're worried about banks you could instead hold your money in a treasury money market fund such as the vanguard treasury money market VUSXX which currently yields about 4.59% and is mostly state income tax free. Or alternatively buy 4 week treasury bills at your broker (or longer duration - looks like 4 week treasuries are paying only around 4%, so in that case might as well use VUSXX).
Topic Author
macobow
Posts: 5
Joined: Mon Feb 03, 2014 1:18 pm

Re: which high yield savings account?

Post by macobow »

Steady Osmosis: Do you use an IRA or what to Not pay tax on interest?

Living Free: Yeah, I better look at that VUSXX too!

Harmonic: Thks! When interest was a lot lower I didn't feel much incentive to look for a better deal with taxes getting a big chunk of my gains.
bmcgin
Posts: 176
Joined: Tue Jan 10, 2023 7:15 pm

Re: which high yield savings account?

Post by bmcgin »

Here's a link to the top banks: https://www.doctorofcredit.com/high-int ... gs-to-get/

Take your pick. If under FDIC, there is not as much to worry about.
radiowave
Posts: 3352
Joined: Thu Apr 30, 2015 5:01 pm

Re: which high yield savings account?

Post by radiowave »

Ally has a no withdrawal penalty CD at 4.75%
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page
AmyandHernia
Posts: 51
Joined: Sat Oct 09, 2021 2:32 pm

Re: which high yield savings account?

Post by AmyandHernia »

I wouldn’t worry about this too much. We put our half of our emergency fund into a HYSA at Marcus but it does not change our financial situation in any meaningful way.
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Kevinaom
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Re: which high yield savings account?

Post by Kevinaom »

Living Free wrote: Thu Mar 23, 2023 12:53 pm Particularly if you're worried about banks you could instead hold your money in a treasury money market fund such as the vanguard treasury money market VUSXX which currently yields about 4.59% and is mostly state income tax free. Or alternatively buy 4 week treasury bills at your broker (or longer duration - looks like 4 week treasuries are paying only around 4%, so in that case might as well use VUSXX).
Just a FYI... If you have a treasury direct account for iBonds (as many do) you can buy the TBILLS directly from the treasury.. it is very simple to do. I scored a few of those close to 5% a few weeks ago before rates plummeted and since I already had the account it took about 2 minutes to buy.
chassis
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Joined: Tue Mar 24, 2020 4:28 pm

Re: which high yield savings account?

Post by chassis »

macobow wrote: Thu Mar 23, 2023 12:44 pm I have had this money market account for quite some time. Now it pays 1.87 APY. I want to put at least $10K into high yield savings. Considering current noise about banking turmoil..... what about UFB Direct preferred savings at 5.02 APY or Salem Five Direct E-one at 4.1 APY? Both are FDIC insured. Would this be a good move on my part or bad? I guess it's a no brainer but i'm not entirely sure.

Buy Treasuries (risk free) or a money market fund (low risk) such as FZDXX at Fidelity. Both pay more than 4%.
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