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Savings account rates are terrible compared with alternative investments though, even cash-storage investments.
by garmaine 6y ago
Savings account rates are terrible compared with alternative investments though, even cash-storage investments.
- zdkl 6y agoCould you give some examples, adjusting for risk?
- Aunche 6y agoNo penalty CDs are strictly better than savings accounts. I was able to lock my emergency savings into a 1.6% CD the day the Fed announced rates cuts.
- formercoder 6y agoWhy are they strictly better? You remove interest rate risk at the expense of yield. They currently pay less than high interest savings.
- Aunche 6y agoWhenever I looked at them last year, they were always slightly higher yield than the online savings accounts. Perhaps it was just a promotional rate.
- formercoder 6y agoI’m not aware of anything with that risk / liquidity profile which pays better? In fact theoretically there shouldn’t be anything.
- NovemberWhiskey 6y agoWell, that sort of depends on how you value FDIC insurance.
- formercoder 6y agoNot any higher than SIPC
- throwaheyy 6y ago- High yield savings accounts - CDs - Money market accounts All pay much higher than a typical megabank savings account and are equally as safe.
- formercoder 6y agoSorry i meant better than high yield savings.
- throwaheyy 6y agoBond ETFs are right now around 2% yield with slightly higher risk than a savings account