Money Market Suggestions

[waynezo]

I have 15k parked in checking account for living expenses. I probably wont need it till late in 2024. I see Discover has a money market for 4.2% no fees. I plan on using it to park cap gains and would transfer to checking a few times a year. I am looking for maximum interest, no fees, and the ability to withdraw funds whenever I want. Any opinions or advice will be appreciated.

 

[FLSUnFIRE]

I have my cash parked in VMFXX which is yielding 5.26% right now -I automatically have my "paycheck" sent to my CU checking account once a month. If the spread was greater I'd probably buy some T-Bills maturing throughout the year as I'll need the cash flow.

 

[Andre1969]

I have some money spread out in MMFs between Schwab, Janus, and American Century. They're all currently paying around 5.2% or so. I know that won't last forever, but I'm enjoying it while I can.

One thing I'd look at with an MMF, is to see if the company you're considering using will charge a maintenance fee if your balance drops below a certain amount. I know American Century does, but it's not huge. I think it's $25 annually, if your account balance drops below a certain amount. I'd imagine the other companies do, as well.

I'm sure $15K is well above most minimum requirements, but if you're drawing from it enough to gradually deplete it, you'll have to keep those minimum balance requirements in mind.

 

[VanWinkle]

I like Vanguard's Treasury Money Market fund VSUXX as it's current SEC yield is 5.28% and it is mostly state tax exempt. If you require FDIC Insurance, I like Bask Bank which is currently 5.10 APY.

VW

 

[DrRoy]

Fidelity is around 5.1 - 5.2%.

 

[pb4uski]

I would first look at what the MM fund at your taxable brokerage account is yielding... most likely it is a little over 5% and no need to establish yet another account.

 

[Sue J]

I've used DiscoverBank for many years. I have a Savings for excess money and another savings as a place to set aside monthly amounts for property taxes and home and car insurance. Then I have a checking account so that I can easily move money to pay property taxes, insurance, etc.

I started with DiscoverBank because there was one of those nice bonus offers for opening a new account. Then I just kept it and expanded because it's handy.

I like the competitive interest rate (4.21% = 4.3% APY) and I've also had the occasion to move money with Zelle, which is instant.

Sometimes DiscoverBank will be a few days behind when other HYSA raise their rates but they catch up soon. Also, it's very easy to buy their CDs. Rate right now is 4.90% for 12 months.

 

[dmpi]

I would just use a money market fund, many will pay 5%+. Just be aware they it takes 1 day to sell the fund and another day to transfer it to your bank account. So allow three days to actually have access to your money.

 

[audreyh1]

I would just use a money market fund, many will pay 5%+. Just be aware they it takes 1 day to sell the fund and another day to transfer it to your bank account. So allow three days to actually have access to your money.

It depends on the brokerage. At Fidelity you can transfer immediately during markets hours and the funds usually show up at the bank the following day.

 

[mathjak107]

i use fzdxx at fidelity .

it is their premium money market . 5.16%

 

[Finance Dave]

Although many of the MM funds are paying over 5% today, that may not be true by the end of the year. I hold mine in FZDXX at FIDO as some above have stated.

Would you rather have a floating rate starting at 5.2% and possibly going down to 4% by end of year? Or would you rather buy a non-callable CD for 1 year paying 4.85%? These are the questions we must ask ourselves.

 

[albireo13]

Fidelity is around 5.1 - 5.2%.

which fund is that?

 

[mathjak107]

which fund is that?

i use FZDXX

 

[jollystomper]

i use FZDXX

It does require $100K minimum to buy into it.

 

[mathjak107]

It does require $100K minimum to buy into it.

ira’s are 10k

 

[jollystomper]

ira’s are 10k

Since the OP mentioned the money was outside of an IRA, I took that perspective.

 

[jebmke]

It depends on the brokerage. At Fidelity you can transfer immediately during markets hours and the funds usually show up at the bank the following day.

that has also been my experience with VG

 

[mathjak107]

Since the OP mentioned the money was outside of an IRA, I took that perspective.

correct , i just wanted others to know

 

[DrRoy]

which fund is that?

SPRXX. Fidelity Money Market Fund