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Savings 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 t
by astrange 4y ago
Savings 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 4y agoIncome from treasury bonds is taxed by the federal government.
- astrange 4y agoPretty good deal in a high tax state. I think it should be taxed as capital gains though, it's all pretty arbitrary.
- frumper 4y 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.