2 ms·

If you're super conservative, there are high interest savings, checking, and money market accounts, just requires a little homework to find the right one (and m

by astura 8y ago

If you're super conservative, there are high interest savings, checking, and money market accounts, just requires a little homework to find the right one (and meet requirements if it's a checking account). I'm currently getting 2.26% in a money market account.

PeterStuer 8y ago
What happens if there is a real systemic crash? As I understand it the FDIC reserves will fail but the FED will start "printing" money for them so you'll eventually ('as soon as possible') will get your up to $250.000 back, but at that point, what would that still be worth?
jonny_eh 8y ago
We wouldn't need to do research if you just told us which money market you chose to invest in.
- mdorazio 8y ago
  No idea where the parent poster is getting 2.26% but best guess is Customers Bank [1] that comes with a 25K minimum. However, you can get 1.8% on a normal savings account at Ally [2]. [1] https://www.customersbank.com/ascent/ https://www.customersbank.com/ascent/ [2] https://www.ally.com/bank/savings-account-rates/ https://www.ally.com/bank/savings-account-rates/
- astura 8y ago
  The account I have is not accepting new accountholders. I said "homework" because you might have different needs than me - you may want to do a few debit card purchases a month for a higher interest rate in a rewards checking account vs set it and forgot it in a money market account. You might have different accounts based on where you live. There's also different accounts that might make more sense if you have less money vs more money with caps, limits, etc. A good overview is here: https://www.doctorofcredit.com/high-interest-savings-to-get/ https://www.doctorofcredit.com/high-interest-savings-to-get/ This is the account I have: https://www.doctorofcredit.com/northern-bank-direct-2-26-apy-money-market-account/ https://www.doctorofcredit.com/northern-bank-direct-2-26-apy...
briandear 8y ago
2.26%? Why not just get an index fund and have reasonable stop losses? 2.26% is essentially putting money under the mattress. Hedge with some muni bonds. On $100k 2.6% is $2,600 per year before tax. Hardly worth it.
- astura 8y ago
  Maybe you missed the "if you are super conservative" part? 2.26% FDIC insured account > money under mattress. Nobody said it was the best way to store all your money for all people at all times. (Personally, very little of my portfolio consistents of low risk financial instruments)

by astura 8y ago

PeterStuer 8y ago

What happens if there is a real systemic crash? As I understand it the FDIC reserves will fail but the FED will start "printing" money for them so you'll eventually ('as soon as possible') will get your up to $250.000 back, but at that point, what would that still be worth?

jonny_eh 8y ago

We wouldn't need to do research if you just told us which money market you chose to invest in.

mdorazio 8y ago
No idea where the parent poster is getting 2.26% but best guess is Customers Bank [1] that comes with a 25K minimum. However, you can get 1.8% on a normal savings account at Ally [2]. [1] https://www.customersbank.com/ascent/ https://www.customersbank.com/ascent/ [2] https://www.ally.com/bank/savings-account-rates/ https://www.ally.com/bank/savings-account-rates/
astura 8y ago
The account I have is not accepting new accountholders. I said "homework" because you might have different needs than me - you may want to do a few debit card purchases a month for a higher interest rate in a rewards checking account vs set it and forgot it in a money market account. You might have different accounts based on where you live. There's also different accounts that might make more sense if you have less money vs more money with caps, limits, etc. A good overview is here: https://www.doctorofcredit.com/high-interest-savings-to-get/ https://www.doctorofcredit.com/high-interest-savings-to-get/ This is the account I have: https://www.doctorofcredit.com/northern-bank-direct-2-26-apy-money-market-account/ https://www.doctorofcredit.com/northern-bank-direct-2-26-apy...

briandear 8y ago

2.26%? Why not just get an index fund and have reasonable stop losses? 2.26% is essentially putting money under the mattress. Hedge with some muni bonds. On $100k 2.6% is $2,600 per year before tax. Hardly worth it.

astura 8y ago
Maybe you missed the "if you are super conservative" part? 2.26% FDIC insured account > money under mattress. Nobody said it was the best way to store all your money for all people at all times. (Personally, very little of my portfolio consistents of low risk financial instruments)