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put my money into savings account or CD?

380 18 February 28, 2023 at 07:43 AM
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My money has been sitting in a chase savings account earning 0.01%

Where should I put my money to try and keep up with inflation? Any suggested savings or CD accounts?

I have a 2.875% mortgage on one property, 3.125% mortgage on my investment property, 1.9% car loan, and about half of my savings in the stock market.
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babygdav
02-28-2023 at 12:16 PM.
02-28-2023 at 12:16 PM.
Been looking for a friend - haven't settled on anything yet. Maybe ally, maybe capitalone, maybe a credit union, maybe a brokerage...

But things I've found

1. No savings or tips will beat inflation.
They'll only cut the loss of cash value as inflation increases this year.

2. You'll have to look at the latest rates at https://www.depositaccounts.com
https://www.nerdwallet.com/best/b...s-accounts
, etc lists of best cd/savings.
Constantly changing, but typically 3.5-5% right now.

You'll want to look at features like Zelle and atm withdrawals should you want easier access - otherwise wait days for the ach / swift etc transfers. Also look at arbitrary transfer limits - you might need $50k in a day, but if they limit transfers to $3k, it's a pain.

3. TIPS is another longer term method 5+ years. You'll want to compare and gauge how long you can not touch the money you put in.

....

4. And, given the baby recession/war/inflation/etc, and the 3, 4 major market dips in the past 4 years (https://bigcharts.marketwatch.com...w=&time=11), you'll want to gauge the pop up from the dips (or where you invested in stocks) and compare vs a typical 10%+ increase in stock value within 3 years post baby-recession and whether you can ride things out.

Because honestly, buying into solid companies (E.g. McDonald's etc) especially dividend paying ones during the recent dips are one of the best ways to grow money long term.

......
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YanksIn2009
03-01-2023 at 05:50 AM.
03-01-2023 at 05:50 AM.
I would not go into either with 17, 26 and 52 week T-bills at 5+%. They are also state and local tax free. Can get them direct from treasurydirect.gov.
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slapshot136
03-01-2023 at 08:59 AM.
03-01-2023 at 08:59 AM.
Quote from YanksIn2009 :
I would not go into either with 17, 26 and 52 week T-bills at 5+%. They are also state and local tax free. Can get them direct from treasurydirect.gov.
This, or I bonds from the same place if you maybe want longer
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Nattefrost
03-07-2023 at 10:34 PM.
03-07-2023 at 10:34 PM.
wouldnt 4, 8, 13 t-bill be a better option
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YanksIn2009
03-08-2023 at 05:34 AM.
03-08-2023 at 05:34 AM.
Quote from Nattefrost :
wouldnt 4, 8, 13 t-bill be a better option

Depends on your potential need for liquidity. The 4 week is paying about 4.7% The 8, about 4.75%. The 13, about 4.9% currently. The 17 is at about 5.05% and the 26 at about 5.15%. With the current rising interest rates, you can make an argument for the 13 as well imo (the 4 and 8 I think are not worth giving up the 0.3% for in most circumstances, but that is me). I currently would personally go for the 17 week and take the 5.05%. You can always split your money up and ladder them as well over a period.
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Joined Jul 2008
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MsGal
03-08-2023 at 12:45 PM.
03-08-2023 at 12:45 PM.
Capital One is currently offering an 11 month CD at 5%. We bought several of those.
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koge811
03-12-2023 at 10:27 PM.
03-12-2023 at 10:27 PM.
do treasury direct right now all banks are a risk.
their 11 month cd? do not touch those piles of shit.

only do short duration ones or if they can offer anything over 5% where it compounds daily and no penalty.
but treasuries are local and state tax free.

best current rates are 5% for 6 months beating 11 m cd without state taxes.

with state taxes like in ca you are far far far better off doing treasury direct than any cds.
tell banks to offer more based on state and also based on gov treasury yields most of the banks are banking on lazy people to ump on this
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Joined Oct 2010
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YanksIn2009
03-13-2023 at 05:56 AM.
03-13-2023 at 05:56 AM.
Quote from koge811 :
do treasury direct right now all banks are a risk.
their 11 month cd? do not touch those piles of shit.

only do short duration ones or if they can offer anything over 5% where it compounds daily and no penalty.
but treasuries are local and state tax free.

best current rates are 5% for 6 months beating 11 m cd without state taxes.

with state taxes like in ca you are far far far better off doing treasury direct than any cds.
tell banks to offer more based on state and also based on gov treasury yields most of the banks are banking on lazy people to ump on this
T-bills are the way to go, but at this point banks are never going to compete with the feds on interest rates for a number of reasons. When the gov is printing and spending money at ludicrous levels and causing high inflation as a result and then tries to fix that inflation by raising interest rates, the banks simply can't compete on short term rates which are much higher than longer term rates. Rates are likely headed up even more, so I would suggest laddering T-bills of 17 or 26 week duration so as to capture that.

My 2 cents.
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Joined Jun 2013
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koge811
03-13-2023 at 11:24 PM.
03-13-2023 at 11:24 PM.
Quote from YanksIn2009 :
T-bills are the way to go, but at this point banks are never going to compete with the feds on interest rates for a number of reasons. When the gov is printing and spending money at ludicrous levels and causing high inflation as a result and then tries to fix that inflation by raising interest rates, the banks simply can't compete on short term rates which are much higher than longer term rates. Rates are likely headed up even more, so I would suggest laddering T-bills of 17 or 26 week duration so as to capture that.

My 2 cents.
i recommend only touching 3-6 months as well do not touch 1 yr + durations at all people.

do not touch longer than 3-6 m cds definitely.
banks cannot compete for deposits right now keep the bare min and what you need only at banks
and the rest you can loan to the gov to fuk us more. but we have no choice anyway.
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ToSRQ
03-17-2023 at 06:39 PM.
03-17-2023 at 06:39 PM.
Quote from YanksIn2009 :
Depends on your potential need for liquidity. The 4 week is paying about 4.7% The 8, about 4.75%. The 13, about 4.9% currently. The 17 is at about 5.05% and the 26 at about 5.15%. With the current rising interest rates, you can make an argument for the 13 as well imo (the 4 and 8 I think are not worth giving up the 0.3% for in most circumstances, but that is me). I currently would personally go for the 17 week and take the 5.05%. You can always split your money up and ladder them as well over a period.
Is there a good YT tutorial on how to buy on the treasury website. I feel like I could use a lesson here.
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HelloClemFandango
03-19-2023 at 12:05 PM.
03-19-2023 at 12:05 PM.
Buy Bitcoin and have laser eyes
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bernardino
04-10-2023 at 06:39 PM.
04-10-2023 at 06:39 PM.
If you have a Vanguard account, you can buy treasury bills through them
https://www.youtube.com/watch?v=luCA-a-FPX8
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TiggerCub
04-13-2023 at 06:22 AM.
04-13-2023 at 06:22 AM.
Just buy BIL in any brokerage a/c. This is SPDR® Bloomberg 1-3 Month T-Bill ETF, which does what the name implies. Instant liquidity when you need to cash for anything else
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bloomlate
04-13-2023 at 10:23 AM.
04-13-2023 at 10:23 AM.
Quote from ToSRQ :
Is there a good YT tutorial on how to buy on the treasury website. I feel like I could use a lesson here.
https://youtu.be/rFuiC-UNeMc
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