Author Topic: Where's your cash stash? And what's it earning?  (Read 12529 times)

TheFirstMan

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Where's your cash stash? And what's it earning?
« on: August 26, 2015, 05:30:06 PM »
I have built up some decent cash reserves in preparation for a home addition. My bank pays squat.

Is anyone earning anything on a simple savings account or up to 1-yr CD?

Any other ideas? (Yes, I could shove it in the market...)

matchewed

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Re: Where's your cash stash? And what's it earning?
« Reply #1 on: August 26, 2015, 05:32:22 PM »
For short term goals the best aspects are liquidity and low risk. So a savings account or appropriate length CD is your best bet.

TheFirstMan

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Re: Where's your cash stash? And what's it earning?
« Reply #2 on: August 26, 2015, 05:37:10 PM »
For short term goals the best aspects are liquidity and low risk. So a savings account or appropriate length CD is your best bet.

Right, but I'm wondering what people have found for best returns on those liquid and low-risk accounts.

BarkyardBQ

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Re: Where's your cash stash? And what's it earning?
« Reply #3 on: August 26, 2015, 05:39:17 PM »
Barclays online savings 1% or dream account 1.05-1.10%

MDM

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neil

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Re: Where's your cash stash? And what's it earning?
« Reply #5 on: August 26, 2015, 05:55:01 PM »
Most of the good online savings accounts are 1% (Ally, synchrony, etc).
Some states have access to Kasasa accounts through credit unions that can be higher (2-3%) if you jump some hoops (10 debit card transactions, etc).

However, one option I wish I'd considered after all this time is the fact that CDs carry interest penalties for breaking them.  If you really don't need the cash, you can see what the break-even point is between the current savings rate and the CD rate with the penalty factored in.  Sometimes, it's not really that long.  And with the minimal amount of interest collecting anyway, you may not really miss the lost interest if you actually have an emergency need for the money.

I have mine in 2 year CDs now because my credit union ran a promotion for 2% a few months back.


fb132

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Re: Where's your cash stash? And what's it earning?
« Reply #6 on: August 26, 2015, 05:57:02 PM »
The only cash stash I have is my buffer (I am a YNABer) and I keep it in my 1,5% savings account with tangerine although there is a promotion until november in which it is at 3%.

TheFirstMan

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Re: Where's your cash stash? And what's it earning?
« Reply #7 on: August 26, 2015, 06:13:27 PM »
These are great tips, everyone. Nerdwallet was helpful, too.


My Own Advisor

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Re: Where's your cash stash? And what's it earning?
« Reply #8 on: August 26, 2015, 06:29:36 PM »
Savings account earning 1%. 

FIRE me

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Re: Where's your cash stash? And what's it earning?
« Reply #9 on: August 26, 2015, 07:37:01 PM »
I have built up some decent cash reserves in preparation for a home addition. My bank pays squat.

Is anyone earning anything on a simple savings account or up to 1-yr CD?

Any other ideas? (Yes, I could shove it in the market...)

You can get a damn fine FDIC insured (the principal) return by doing bank account opening bonuses.

http://www.doctorofcredit.com/best-bank-account-bonuses/

You can also do credit card opening bonuses, using manufactured spending (example: buy yourself some Home Depot gift cards) where necessary.

http://www.doctorofcredit.com/credit-cards/master-list-of-credit-card-sign-up-bonuses/

More time and trouble than buying a CD, but the returns can be very worthwhile. I've got an $825 return so far this year, on only four new credit card and bank accounts (Chase and US Bank).

Usually, in six months you're good to close the account and take the bonus with you. But always read the fine print, and make sure you understand the offer.

tdogz

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Re: Where's your cash stash? And what's it earning?
« Reply #10 on: August 27, 2015, 10:08:30 AM »
I'm using mysavingsdirect.com for my emergency fund. It currently pays 1.25%. It is a very basic, no-frills website run by Emigrant Bank.

TheFirstMan

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Re: Where's your cash stash? And what's it earning?
« Reply #11 on: August 28, 2015, 09:55:11 AM »
Thanks. I just got a Chase bonus of $500, too.

Thinkum

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Re: Where's your cash stash? And what's it earning?
« Reply #12 on: August 28, 2015, 10:00:23 AM »
I've been using ING, who was bought by Capital One for ages. Capital One 360 checking and savings. The interest rate sucks at only 0.75% though! Not sure if it's worth the trouble of changing though.

Argyle

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Re: Where's your cash stash? And what's it earning?
« Reply #13 on: August 28, 2015, 10:03:36 AM »
CD at Discover Bank at 1.95%. I opened it this past June.

RunHappy

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Re: Where's your cash stash? And what's it earning?
« Reply #14 on: August 28, 2015, 10:06:31 AM »
Ally Online Savings Account - .99% is where I stash my cash.

Scandium

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Re: Where's your cash stash? And what's it earning?
« Reply #15 on: August 28, 2015, 10:45:17 AM »
Seems like ~1% is what you'll get. I have a Discover account with 0.9%

https://www.depositaccounts.com/savings/

zephyr911

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Re: Where's your cash stash? And what's it earning?
« Reply #16 on: August 28, 2015, 11:55:00 AM »
Why aren't you buying stock with that money? Just tap a HELOC and pay it off while your investment earns 2x the rate (on average).

Argyle

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Re: Where's your cash stash? And what's it earning?
« Reply #17 on: August 28, 2015, 12:27:47 PM »
Good thing you didn't buy stock with it if you needed to get it out this week!

thd7t

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Re: Where's your cash stash? And what's it earning?
« Reply #18 on: August 28, 2015, 01:29:16 PM »
Why aren't you buying stock with that money? Just tap a HELOC and pay it off while your investment earns 2x the rate (on average).
The most obvious good reason not to buy stock with that money is if someone had a short horizon (making a purchase/one time investment), but another good reason is if someone really knows that their risk-tolerance won't let them be rational with all their money in the market.  It might be better for them to have a small amount of money in cash that would prevent them getting spooked.

NoraLenderbee

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Re: Where's your cash stash? And what's it earning?
« Reply #19 on: August 28, 2015, 02:30:00 PM »
In a coffee can under the bed. Anything else is just toooo risky.

Cheddar Stacker

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Re: Where's your cash stash? And what's it earning?
« Reply #20 on: August 28, 2015, 03:30:36 PM »
Local bank. 1.83% in checking account. 12 debits/month, 1 direct deposit, yada yada.

When I opened the account in 2007, they were paying 5.45%, but it's still a nice little perk to have.

tallen

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Re: Where's your cash stash? And what's it earning?
« Reply #21 on: August 29, 2015, 08:47:56 PM »
Earning 5% in Netspend and Brink's card associated savings accounts. http://www.doctorofcredit.com/guide-to-5-interest-prepaidsavings-accounts/

Astatine

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Re: Where's your cash stash? And what's it earning?
« Reply #22 on: August 29, 2015, 09:33:21 PM »
In my mortgage redraw account. So it saves me on interest, access to cash within 2 business days (no upper or lower limits on amount, no restrictions on number of deposits or withdrawals) and I don't pay tax, which I would if I had my savings in an online savings account.

When we pay the mortgage off, we will have a hefty cash emergency fund in 1 or 2 online savings accounts or rolling term deposits, depending on interest rates and annoyance level. Not sure whether it will make any difference tax-wise splitting the emergency fund between me and DH or whether it doesn't matter if it's all in one name. However, my risk of death in the next 10 years is higher than average so maybe it will make sense to split emergency funds half in my name, half in his name so that whatever happens, one of us has insta-access to $$$.

locass316

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Re: Where's your cash stash? And what's it earning?
« Reply #23 on: September 03, 2015, 12:51:45 AM »
my savings is with net spend and ns western union. safe 5% return

jabell

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Re: Where's your cash stash? And what's it earning?
« Reply #24 on: September 03, 2015, 06:07:53 AM »
Kasasa checking account 3.04 interest

I'm a red panda

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Re: Where's your cash stash? And what's it earning?
« Reply #25 on: September 03, 2015, 07:20:29 AM »
We have cash in our local credit union which has 2.5% up to $20,000.  (A few years ago it was 3.5% up to $40k... boo).  You do have to have a direct deposit and use a debit card 12 times a month with an average debit of $5. We daily grocery shop, so that is no problem.

Beyond $20,000 we have it in USAA which pays absolute crap, but slightly higher than the absolute crap that the credit union pays after $20,000.


We have drastically less cash than we did a year ago though. We've funneled a lot more into investments.
« Last Edit: September 03, 2015, 08:18:06 AM by iowajes »

Bearded Man

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Re: Where's your cash stash? And what's it earning?
« Reply #26 on: September 03, 2015, 07:59:14 AM »
For those getting 5%, is that on the first $500 dollars as the fine print for most institutions usually say? I remember WAMU, when they existed, tried that crap with me. Oh, bring your money here, you get 5% on your savings. I asked them up to what dollar amount. They said $500 and then I asked what it is after that? It was ridiculously low, I would have been better off buying goods and storing them.

Scandium

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Re: Where's your cash stash? And what's it earning?
« Reply #27 on: September 03, 2015, 08:05:45 AM »
We have cash in our local credit union which has 2.5% up to $20,000.  (A few years ago it was 3.5%... boo).  You do have to have a direct deposit and use a debit card 12 times a month with an average debit of $5. We daily grocery shop, so that is no problem.

I saw those deals in local credit unions too. But I get 6% cashback on groceries and 1-5% on most everything else so have no interest in being forced to use a debit card. Not to just gain 1.5% over my discover bank.

Once fed rate increases happen I guess we might see better rates, and hopefully I-bonds will be more attractive too.

I'm a red panda

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Re: Where's your cash stash? And what's it earning?
« Reply #28 on: September 03, 2015, 08:17:45 AM »
We have cash in our local credit union which has 2.5% up to $20,000.  (A few years ago it was 3.5%... boo).  You do have to have a direct deposit and use a debit card 12 times a month with an average debit of $5. We daily grocery shop, so that is no problem.

I saw those deals in local credit unions too. But I get 6% cashback on groceries and 1-5% on most everything else so have no interest in being forced to use a debit card. Not to just gain 1.5% over my discover bank.

Once fed rate increases happen I guess we might see better rates, and hopefully I-bonds will be more attractive too.

2.5% annual interest on $20,000 is $500. If your monthly grocery budget is $300, then annually you would get rewards of $216.  So the interest is better. 

Besides, it is only 12 debits a month. We shop near daily- DH works next door to the grocery store and shopping daily means it easily fits in the bike bag- so we use the credit card after we get those 12 debits to earn rewards.  Or if I make a large grocery run, I put it on the CC, and then will just run the debit on a gallon of milk or something small. The -average- debit purchase has to be $5; so it really isn't that unreasonable- we still get a lot of CC points.

Scandium

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Re: Where's your cash stash? And what's it earning?
« Reply #29 on: September 03, 2015, 08:23:48 AM »
We have cash in our local credit union which has 2.5% up to $20,000.  (A few years ago it was 3.5%... boo).  You do have to have a direct deposit and use a debit card 12 times a month with an average debit of $5. We daily grocery shop, so that is no problem.

I saw those deals in local credit unions too. But I get 6% cashback on groceries and 1-5% on most everything else so have no interest in being forced to use a debit card. Not to just gain 1.5% over my discover bank.

Once fed rate increases happen I guess we might see better rates, and hopefully I-bonds will be more attractive too.

2.5% annual interest on $20,000 is $500. If your monthly grocery budget is $300, then annually you would get rewards of $216.  So the interest is better. 

Besides, it is only 12 debits a month. We shop near daily- DH works next door to the grocery store and shopping daily means it easily fits in the bike bag- so we use the credit card after we get those 12 debits to earn rewards.  Or if I make a large grocery run, I put it on the CC, and then will just run the debit on a gallon of milk or something small. The -average- debit purchase has to be $5; so it really isn't that unreasonable- we still get a lot of CC points.

Sure, if it works for you. But just to clarify; I get 1% now, so the CU would just be 1.5% more, or $300/year. Our grocery budget is more like $500 (including lots of household supplies etc too) so that's $360/year. Plus, personally I still think it's too much hassle:)

and BTW: You shop every day? Wow, I would go nuts. Even using a bike I can fit near a weeks worth. Once a week is more than enough for us.

I'm a red panda

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Re: Where's your cash stash? And what's it earning?
« Reply #30 on: September 03, 2015, 08:40:34 AM »
and BTW: You shop every day? Wow, I would go nuts. Even using a bike I can fit near a weeks worth. Once a week is more than enough for us.

I shop like once a month :)- for the large household stuff and dog food.  Husband shops daily.  He does all the cooking and he prefers to get fresh ingredients when he decides what he wants; he refuses to meal plan. He works next door to the grocery store, so it's just part of his routine. I think he's crazy, as I hate shopping, but it works for him.  I think it is more about fresh ingredients than fitting it on the bike.  Although, with his work clothes in the bike bag, he doesn't actually have a ton of room to fit more stuff in.

tallen

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Re: Where's your cash stash? And what's it earning?
« Reply #31 on: September 05, 2015, 12:55:06 AM »
For those getting 5%, is that on the first $500 dollars as the fine print for most institutions usually say? I remember WAMU, when they existed, tried that crap with me. Oh, bring your money here, you get 5% on your savings. I asked them up to what dollar amount. They said $500 and then I asked what it is after that? It was ridiculously low, I would have been better off buying goods and storing them.

The 5% is on the first $5000, but you can have a few different accounts (I have 2- Netspend and Brink's)

Wetz

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Re: Where's your cash stash? And what's it earning?
« Reply #32 on: September 08, 2015, 08:48:11 AM »
I'm using mysavingsdirect.com for my emergency fund. It currently pays 1.25%. It is a very basic, no-frills website run by Emigrant Bank.

Can anyone provide more detail on mysavingsdirect?  I'm at CapitalOne and have been for 8 years.  I'm considering moving my efund somewhere with higher returns since it is getting large enough to matter to me.  I can't find much on  MysavingsDirect other than the 1.25% yield.

Kernel Fielding

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Re: Where's your cash stash? And what's it earning?
« Reply #33 on: September 13, 2015, 06:37:37 PM »
Can anyone provide more detail on mysavingsdirect? I can't find much on  MysavingsDirect other than the 1.25% yield.

It's an online savings account to which you link your checking account. No service fees, no minimums, maximums, or other requirements in order to get the 1.25% yield.

https://www.mysavingsdirect.com/MySavingsDirectWeb/en/common/information/LearnMore.jsp
https://www.mysavingsdirect.com/MySavingsDirectWeb/en/common/information/FAQ.jsp

wienerdog

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Re: Where's your cash stash? And what's it earning?
« Reply #34 on: September 13, 2015, 07:37:54 PM »

It's an online savings account to which you link your checking account. No service fees, no minimums, maximums, or other requirements in order to get the 1.25% yield.

https://www.mysavingsdirect.com/MySavingsDirectWeb/en/common/information/LearnMore.jsp
https://www.mysavingsdirect.com/MySavingsDirectWeb/en/common/information/FAQ.jsp

It looks like it dropped to 1.10%. 

Kernel Fielding

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Re: Where's your cash stash? And what's it earning?
« Reply #35 on: September 13, 2015, 07:41:53 PM »
It looks like it dropped to 1.10%. 

I had just noticed that as well. Oh well, I guess they never promised their rate wouldn't change. I may re-evaluate if it dips any more compared to other savings account yields.

Wetz

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Re: Where's your cash stash? And what's it earning?
« Reply #36 on: September 14, 2015, 06:42:01 AM »


It looks like it dropped to 1.10%.

I'm glad I didn't stress about moving my money out of Capital One.

Making Cents

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Re: Where's your cash stash? And what's it earning?
« Reply #37 on: September 16, 2015, 07:53:08 AM »
Yup. I've got two Netspend accounts (one mine, one my spouse's) at 5% too.

Then I also have a small amount of savings in Ally at .99%, because it quicker to access (Netspend's routing number isn't universally accepted).

I have toying with the idea of opening up two Mango accounts soon (6% interest--5.65% after fees and requires a regular $500 direct deposit).... but that one's more work to earn the high yield so still undecided. I had not heard of Brink's before (thanks, tallen!) I may look into that instead as it looks like fewer hoops to jump through.
« Last Edit: September 16, 2015, 07:59:50 AM by Making Cents »

MarciaB

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Re: Where's your cash stash? And what's it earning?
« Reply #38 on: September 16, 2015, 08:46:00 PM »
I'm using mysavingsdirect.com for my emergency fund. It currently pays 1.25%. It is a very basic, no-frills website run by Emigrant Bank.

+1

rmendpara

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Re: Where's your cash stash? And what's it earning?
« Reply #39 on: September 17, 2015, 10:32:14 AM »
Plenty of online banks. Nerdwallet can provide some links in the ~1% range.

Barclays online, Capital one online, GE/synchrony, and Ally are probably the larger ones. There are many smaller banks that offer similar and even slightly higher rates.

Personally, I keep 20k in capital one online savings (I think 0.75% today), though I also use their checking for bill pay and nearly everything else. It's not worth the hassle to me for an extra .5% or $100/yr to complicate my banking. I dislike having two banks for cash as it stands, but that's just me.

KittyCat

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Re: Where's your cash stash? And what's it earning?
« Reply #40 on: September 17, 2015, 10:54:57 AM »
Personally, I keep 20k in capital one online savings (I think 0.75% today), though I also use their checking for bill pay and nearly everything else. It's not worth the hassle to me for an extra .5% or $100/yr to complicate my banking. I dislike having two banks for cash as it stands, but that's just me.

I have around 8k in my Capital One 360 account, and it is 0.75%. I wish I had gone with Ally while I was deliberating on which one to bank with, especially back when I had nearly 100k in the account (now in Vanguard), but I don't think it's worth it for me to chase every last percentage point at this point since the difference is around $20 a year for me now.

Jags4186

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Re: Where's your cash stash? And what's it earning?
« Reply #41 on: September 18, 2015, 06:38:25 PM »
I keep 20k at Ally .99%. I do take advantage of some bonuses that go around (I've gotten $500 from Chase this year).