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> But why would you put $100k in savings? There are so many better places that are going to get you more than a monthly grocery bill over time. If someone is s
by frumper 3y ago
> But why would you put $100k in savings? There are so many better places that are going to get you more than a monthly grocery bill over time.
If someone is sitting on 100k in savings, there isn't much of a practical difference to moving it to a money market. The rates aren't significantly different. Some banks have higher savings rates, some higher money market rates. That makes other things your deciding factors such as the trust in a brand, quality of life, ease of use.
- astrange 3y agoSavings accounts are tax-disadvantaged; interest is taxed like ordinary income. I'm not sure about money market funds, but municipal/treasury bonds don't have that problem. Remember, taxes are designed to benefit rich passive investors, so you gotta act like one.
- armitron 3y agoIncome from treasury bonds is taxed by the federal government.
- astrange 3y agoPretty good deal in a high tax state. I think it should be taxed as capital gains though, it's all pretty arbitrary.
- frumper 3y agoMoney market interest income is taxed as income. So replying to the commenter to use money market accounts over savings, there isn’t a big difference. People go with what’s easiest and convenient when rates aren’t significantly different.