5 ms·
Exactly this. I had a bunch of cash sitting in a Marcus account until I discovered I can just buy ICSH[0] and get another 50~100 bps by doing what the banks do
by mbesto 4y ago
Exactly this. I had a bunch of cash sitting in a Marcus account until I discovered I can just buy ICSH[0] and get another 50~100 bps by doing what the banks do - which is taking your deposits and buy bonds.
This Apple savings account will likely go down over time. Any time new branded savings accounts are marketed they always put super high returns to foster deposits and then they slowly trickle them down to a mean value that sits somewhere between 50~100 bps from what you get from a money market play.
As of 4/13 30-day SEC yield on ICSH is: 4.92%
As of 4/17, Marcus HYS is: 3.90%
[0] - https://www.ishares.com/us/products/258806/ishares-liquidity-income-etf https://www.ishares.com/us/products/258806/ishares-liquidity...
- user_named 4y agoDid you discover duration risk too?
- daydream 4y ago> Did you discover duration risk too? ICSH is an ultra-short bond fund with average duration of 0.42 years. So very little duration risk. That said for the GP it’s only slightly more work to buy actual treasury bonds. Hold them to maturity and there’s no risk of losing money from interest rates going up. You know exactly what you’re getting and when. And if interest rates drop suddenly you can decide if you want to sell the bond and take a gain.