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SoFi is offering 1.25% but Vanguard's short term treasury fund (VGSH) is at 2.35% if you're ok with mild capital risk.
by cheriot 4y ago
SoFi is offering 1.25% but Vanguard's short term treasury fund (VGSH) is at 2.35% if you're ok with mild capital risk.
- mgh2 4y agoBe careful of Sofi, like so many IPOed to raise money from covid, their stock tumbled ~-60% YTD: https://www.google.com/search?q=sofi+stock&oq=sofi+stock&aqs=edge.0.69i59j0i20i263i433i512j0i512l6j69i64.9644j1j4&sourceid=chrome&ie=UTF-8 https://www.google.com/search?q=sofi+stock&oq=sofi+stock&aqs... Founder's sexual misconduct: https://en.wikipedia.org/wiki/Mike_Cagney https://en.wikipedia.org/wiki/Mike_Cagney It is a known sales tactic to hook in customers betting that the hassle to switch later will keep them loyal. The 1.25% rate is if you set up direct deposit, with a $300 bonus. https://www.sofi.com/banking/ https://www.sofi.com/banking/ Don't be surprised if they lower the rate after the promotion time. Happened with HSBC w/ 5% APY before 2009 crisis, Robinhood and Marcus before covid.
- smilebot 4y agoI guess the thing to learn from this is always keep shopping for a better deal?
- cheriot 4y agoThe founder was pushed out years ago so is that still relevant? High yield savings has always been about attracting customers. SoFi just got their banking charter so they want to build up deposits. The rest of the HYS crowd is around 0.5% and pocketing the difference.
- samspenc 4y agoIsn't the risk with any bond funds -- like Vanguard's short term treasury fund (VGSH) -- that their price goes down as yield goes up? I just checked on Google Finance and it looks like it has gone down 4.18% over the past 1 year and negative 3.72% over the past 6 months, so you would be upside down overall if you had invested in it recently?
- cheriot 4y agoyes, exactly, that's why I mention capital risk. Much less than stocks or corporate bonds, but more than an FDIC insured account.