Author Topic: Yields on Cash / Cash Equivalents  (Read 3451 times)

OccamsRazor

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Yields on Cash / Cash Equivalents
« on: July 31, 2015, 04:01:53 PM »
Anyone getting better than 0.90% in cash investments or short term bonds? American Express offers 0.90% right now in their personal savings accounts, but are there any alternative that also don't expose someone to meaningful principle risk?

For example, any 2y bonds with decent yields? I'm open to corporates as long as they're investment grade.

johnny847

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Re: Yields on Cash / Cash Equivalents
« Reply #1 on: July 31, 2015, 04:17:34 PM »
Mango Money offers 6% on the first $5k, but there are $3/month fees involved.

Consumers Credit Union offers 3.09% on the first $10k if you jump through some (what I believe to be easy) hoops. 4.09% if you jump through one more, and 5.09% on $20k if you jump through yet another (I don't recall what these last two hoops are, but I didn't want to jump through them).

Lake Michigan also offers 3% or so if you jump through some hoops.

OccamsRazor

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Re: Yields on Cash / Cash Equivalents
« Reply #2 on: July 31, 2015, 04:35:48 PM »
Ah I should have clarified - looking for rates on sizable balances, well beyond the thresholds they normally set for teaser rates.

beltim

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Re: Yields on Cash / Cash Equivalents
« Reply #3 on: July 31, 2015, 04:41:30 PM »
You could consider the Guggenheim Bulletshares ETFs.  They invest in corporate bonds maturing in a defined year, so you don't have to worry about interest rate risk if you hold to maturity.  The 2017 investment grade fund has a yield to maturity of 1.53%, and the 2018 1.94%.
http://guggenheiminvestments.com/products/etf/bulletshares

DarinC

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Re: Yields on Cash / Cash Equivalents
« Reply #4 on: July 31, 2015, 04:42:42 PM »
Mango/HSBC are unfortunately closing shop, but there are still netspend and other accounts around offering ~4-5%. I think the max you can have is 3/bank, and 5 total, but since there are different providers you might be able to get around 7 total, so ~$35k@~4-5%.

http://www.fatwallet.com/forums/finance/1434408/

There's also Santander, which will net you ~$20/month from holding ~$375/month on average ($750 DD from employer every pay period, which is ACH'ed out the next week) and completing 2x bill pays per month, which is a return of ~5%.

I'm going to try to do the CCU for 5+% and then get as many of the smaller 5% accounts I can. I'm not sure if I can swing it, but I might be able to get ~$50k-$60k at ~4.5+%. I'm putting enough in my 401k to stay in the 15% bracket, so fed taxes shouldn't be too bad either.

johnny847

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Re: Yields on Cash / Cash Equivalents
« Reply #5 on: July 31, 2015, 04:49:45 PM »
Ah yea I haven't looked recently for fixed income assets with little to no principal risk.

But may I ask, what is the purpose? For investing? (I'm guessing not). For part of an emergency fund? For a bit of gain on money set aside for a large exepnse in the near future?


Mango/HSBC are unfortunately closing shop, but there are still netspend and other accounts around offering ~4-5%. I think the max you can have is 3/bank, and 5 total, but since there are different providers you might be able to get around 7 total, so ~$35k@~4-5%.
No they're not. Mango is switching to Visa prepaid cards from Mastercards. If you go to their website today you can sign up for an account (previously they had closed to new accounts for a couple months).
By the way why do you lump HSBC with Mango? Mango isn't administered by HSBC, and I don't think HSBC offers 6% on anything.

RWD

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Re: Yields on Cash / Cash Equivalents
« Reply #6 on: July 31, 2015, 06:51:12 PM »
Ally's savings account is currently at 0.99%, which is where the majority of my "cash" is currently parked.

MDM

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Re: Yields on Cash / Cash Equivalents
« Reply #7 on: July 31, 2015, 07:43:30 PM »
GE Capital Bank raises the bar - all the way up to 1.05%....

DarinC

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Re: Yields on Cash / Cash Equivalents
« Reply #8 on: July 31, 2015, 08:17:38 PM »
Mango/HSBC are unfortunately closing shop, but there are still netspend and other accounts around offering ~4-5%. I think the max you can have is 3/bank, and 5 total, but since there are different providers you might be able to get around 7 total, so ~$35k@~4-5%.
No they're not. Mango is switching to Visa prepaid cards from Mastercards. If you go to their website today you can sign up for an account (previously they had closed to new accounts for a couple months).
By the way why do you lump HSBC with Mango? Mango isn't administered by HSBC, and I don't think HSBC offers 6% on anything.
I thought they were also dropping the ~5% savings. If not, that's awesome. By HSBC I mean Union Plus (my UP CC used to be HSBC).

johnny847

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Re: Yields on Cash / Cash Equivalents
« Reply #9 on: July 31, 2015, 08:54:54 PM »
Mango/HSBC are unfortunately closing shop, but there are still netspend and other accounts around offering ~4-5%. I think the max you can have is 3/bank, and 5 total, but since there are different providers you might be able to get around 7 total, so ~$35k@~4-5%.
No they're not. Mango is switching to Visa prepaid cards from Mastercards. If you go to their website today you can sign up for an account (previously they had closed to new accounts for a couple months).
By the way why do you lump HSBC with Mango? Mango isn't administered by HSBC, and I don't think HSBC offers 6% on anything.
I thought they were also dropping the ~5% savings. If not, that's awesome. By HSBC I mean Union Plus (my UP CC used to be HSBC).

Wait the UP CC? I thought Union Plus was a prepaid debit card?

DarinC

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Re: Yields on Cash / Cash Equivalents
« Reply #10 on: August 01, 2015, 10:55:59 AM »
It is, but I mix the two up because I have a separate UP CC that used to be owned by HSBC.

johnny847

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Re: Yields on Cash / Cash Equivalents
« Reply #11 on: August 01, 2015, 10:57:19 AM »
It is, but I mix the two up because I have a separate UP CC that used to be owned by HSBC.

Ohhh haha.