Short term investments

[muskrat]

I have $100k that is currently sitting in a high yield savings account.  I am going to need some or all of it in 6-12 months.  I can earn 5% in a short term Yieldstreet note (the only risk is if the company goes belly up.). Does anyone know of a better place to put it (higher yield or lower risk.)

[cincystache]

You probably will not find lower risk than an FDIC insured high yield savings account. You could buy treasury bills which are ~3.5% for a 52 week term which would be equally safe and slightly higher yield. Beyond that it depends on your definition of "need"; if you absolutely must have that money with no loss of capital I would use one of these options. Good luck.

[Captain Cactus]

I just noticed this morning that the Vanguard money market funds are yielding around 2.5%.  That's better than my savings account.

[reeshau]

If you had said 12 months, I would say I bonds.  They are not redeemable for 12 months, and have a 3 month interest penalty.  But with a current yield of 9.62%, which will adjust in November, you could take 3/4 of that and still beat the other options.

[franklin4]

I just noticed this morning that the Vanguard money market funds are yielding around 2.5%.  That's better than my savings account.

This got my attention and I looked into it. I see that VUSXX has returned 2.27% since inception in 1992. YTD it has returned 0.45%. Vanguard's website could be more clear about how they present historic returns. Or maybe I'm wrong and there actually is a money market fund returning 2+%?

[Captain Cactus]

I just noticed this morning that the Vanguard money market funds are yielding around 2.5%.  That's better than my savings account.

This got my attention and I looked into it. I see that VUSXX has returned 2.27% since inception in 1992. YTD it has returned 0.45%. Vanguard's website could be more clear about how they present historic returns. Or maybe I'm wrong and there actually is a money market fund returning 2+%?

If you go into the MM fund descriptions, go to the distributions tab, you'll see that the amount paid out in September was around 1.87%-2.13% (sorry, not the 2.5% I thought I ready before...).  That's pretty good though.  I used to keep all my cash in MMF.

[dividendman]

The most recent 26-week treasury bill is at 3.78% interest, and it'll probably go higher at the next auction.

Various terms and auction rates from TreasuryDirect: https://www.treasurydirect.gov/auctions/announcements-data-results/

[Jeferson]

If you know you are going to need it in such a relatively short time period there is not much you can do apart from the saving account you have. There are of course other options but they are mostly long-term as the markets are quite unpredictable atm.

[Nad]

CASH.TO or HSAV.TO

[clifp]

Schwab's money market is at 2.92% currently. It is up more than 1.50 basis points in the last 6 months.  I wouldn't be surprised to see rise that much in the next 6 months.

[PDXTabs]

Schwab's money market is at 2.92% currently. It is up more than 1.50 basis points in the last 6 months.  I wouldn't be surprised to see rise that much in the next 6 months.

But if you have Schwab you can also buy US treasuries on the open market and right now you'll get 4+% for 6, 9, or 12 months of duration. Right? I've never actually done it myself.

[GilesMM]

T-bills are all the rage. 3-6–12 month. Low risk.

[muskrat]

Thanks guys I ended up with Ibonds and going to buy some sort term treasuries!