Cds or High yield savings account, what sort of FDIC insured options are looking good?

[LuvOrlando]

Poking around and wondering what other people see and their experiences, the experiences are probably more interesting than anything else.

 

[robinb]

I have $8k in a CD ladder where a $2k section re-invests every 3 months. At 5.5% it's doing slightly better than the cash in my money market account.

 

[mikehn]

I think Im pretty well diversified. I have a chunk of cash that I park in CDs and savings accounts. Im definitely not going to get rich off them or anything. Just wanting something liquid, other than inside my mattress.

 

[VGCgroupie]

I chose a HYSA because I dont like to be locked in and unable to get my money. The % is actually very close to or on par with many CD's currently. 5.05%

 

[WEDWDW]

Some in 5% CDs,some in Mutual Funds.

After the huge growth in my Mutual Funds recently,should have had it all there!

 

[starry_solo]

I have $8k in a CD ladder where a $2k section re-invests every 3 months. At 5.5% it's doing slightly better than the cash in my money market account.

Ooh, where are you getting 5.5%? I've only been able to find 4.5-4.85%

 

[robinb]

Ooh, where are you getting 5.5%? I've only been able to find 4.5-4.85%

My investments are with Fidelity. I bought a $2k CD mid-month at 5.2%, so not quite 5.5%

 

[tvguy]

I keep very little in CDs anymore. Just my 6 months emergency fund. I have been using guaranteed cash value annuities with step ups. My largest account steps up in June (yikes, that's tomorrow) to 6%, which is the cap.

 

[NYCgrrl]

Ooh, where are you getting 5.5%? I've only been able to find 4.5-4.85%

Marcus had an offer of 5.65% in the fall. I think it’s fallen a bit since then but still in the 5.00% range.

 

[firefly_ris]

I have some in CDs; I moved my kids savings accounts to 5% CDs as well instead of the basically nothing interest they were making. I also have a HYSA. And a bit in a 5% Money Market account too. Bit of diversity and the HYSA keeps things liquid for us.

 

[GAN]

I have $8k in a CD ladder where a $2k section re-invests every 3 months. At 5.5% it's doing slightly better than the cash in my money market account.

I've got a 2-year ladder with about 6-months(2-sections) left. As they mature I've been investing in some other things....

 

[_19disnA]

Some banks call their product 'high yield' as more of a gimmick. When rates were lower a couple of years ago, they paid something like 0.5% annually. I would look at the yield as well as how long you need to keep the money invested vs. what a product is called. Several factors can impact what makes the most sense for you. If you might need that money in a few months would be different from money you can invest and won't need to touch for several years. Several websites will compare the latest CD rates from various sources. Since rates are likely about as high as they will go, makes sense to lock in a longer term if you won't need the money anytime soon.

The Treasury dept also has a website where you can directly purchase notes/bills/etc. of varying lengths and they publish what each of those are currently paying.

 

[barkley]

i like cd's for money i don't need to have immediate access to. mine are somewhat laddered. the type i like best are a rare beast that one of our credit unions offers that permits up to $5000 per month in additional deposits. i have 2 of these in case rates are lower than these were loced into and i have money i want to save long term, i also like to have them in case one of my other cd's matures and rates are not great.

 

[irlandaise]

i like cd's for money i don't need to have immediate access to. mine are somewhat laddered. the type i like best are a rare beast that one of our credit unions offers that permits up to $5000 per month in additional deposits.

Credit unions are great. One of mine has what's called an "ownership account" that has tight limitations on how money can be deposited into it, but the current APY is 6.168%. Something to check on.

 

[ShaneDJ]

MYGA (multi-year guaranteed annuity).

 

[barkley]

MYGA (multi-year guaranteed annuity).

i am risk adverse and though it may be a small one i can't get beyond these not having any federal insurance backing them (i was a late in life child to my dad who was a young man during the depression-i heard many stories of those who lost everything in the pre fdic days).

 

[cvjw]

We don’t have any CD’s. We keep all our spare cash in short term treasuries. Easy to get your money out - just takes a day. We have earned lots of cash this way.

 

[longboard55]

Thats what I did when the stock market has sinking, short term treasuries like 3 months, excellent rate no fees and easy to get your money out. Now I am back in equities

 

[LuvOrlando]

i am risk adverse and though it may be a small one i can't get beyond these not having any federal insurance backing them (i was a late in life child to my dad who was a young man during the depression-i heard many stories of those who lost everything in the pre fdic days).

I'm with you, I am leaning into FDIC as I am up to here with watching the 401K roller coaster and not being able to get off that particular barf bag ride.

 

[_19disnA]

Perhaps look for other more conservative investment options in your 401K. Companies typically offer you a choice of investment options. Some are more volatile than others, while other choices are more conservative.