Slickdeals is community-supported.  We may get paid by brands for deals, including promoted items.
forum thread Posted by Knockknock13 • Jun 1, 2023
forum thread Posted by Knockknock13 • Jun 1, 2023

5%APY Webull Cash Management to Earn Interest

39 Comments 8,149 Views
Get Deal at Retailer
Good Deal
Save
Share
Deal Details
Basically its not a savings or checking account,its like a trading account just money sits in webull cash management and earns interest.
If you need money you need to withdraw to your other bank account.
You might already know about webull but giving my 1cent info.

https://www.webull.com/cash-management
Community Notes
About the Poster
Deal Details
Community Notes
About the Poster
Basically its not a savings or checking account,its like a trading account just money sits in webull cash management and earns interest.
If you need money you need to withdraw to your other bank account.
You might already know about webull but giving my 1cent info.

https://www.webull.com/cash-management

Community Voting

Deal Score
+2
Good Deal
Get Deal at Retailer
Leave a Comment
To participate in the comments, please log in.

39 Comments

Sign up for a Slickdeals account to remove this ad.

Jun 1, 2023
1,563 Posts
Joined Apr 2009
Jun 1, 2023
nowayman
Jun 1, 2023
1,563 Posts
Buy a 1mo tbill at Fidelity (or any broker), 5.5% risk free with no state tax
2
Jun 1, 2023
12 Posts
Joined Jun 2014
Jun 1, 2023
vinoth08
Jun 1, 2023
12 Posts
Quote from nowayman :
Buy a 1mo tbill at Fidelity (or any broker), 5.5% risk free with no state tax
I think, there is no state tax only if you buy thro treasury direct.
If you buy thro any broker state tax applies…
Correct me if I'm wrong…
2
Jun 1, 2023
419 Posts
Joined Nov 2019

This comment has been rated as unhelpful by Slickdeals users.

Jun 1, 2023
4,298 Posts
Joined Aug 2009
Jun 1, 2023
madrascaldavid
Jun 1, 2023
4,298 Posts
I would recommend finding one solid savings account that updates their APY regularly as rates increase (I use UFB direct Savings), versus chasing down each 0.1% increase you come across every month. Lots of smaller companies offer great rates like this to get people in the door, then it dwindles once they have their desired clients.
Jun 1, 2023
1,035 Posts
Joined Apr 2005
Jun 1, 2023
bjgfromthe703
Jun 1, 2023
1,035 Posts
The Vanguard settlement fund option VMFXX (Vanguard Federal Money Market Fund) has a yield just above 5% right now with the added perk of not having an awful UI and referral notification spam like WeBull.

https://investor.vanguard.com/inv...file/vmfxx
Jun 1, 2023
1,563 Posts
Joined Apr 2009
Jun 1, 2023
nowayman
Jun 1, 2023
1,563 Posts
Quote from vinoth08 :
I think, there is no state tax only if you buy thro treasury direct.
If you buy thro any broker state tax applies…
Correct me if I'm wrong…
You're wrong, utterly and completely. https://www.investopedia.com/ask/...-taxed.asp
1
Jun 1, 2023
1,563 Posts
Joined Apr 2009
Jun 1, 2023
nowayman
Jun 1, 2023
1,563 Posts
Quote from Knockknock13 :
Tbill has purchase limits and more over if debt ceiling fails its a risk
Its peoples interest what they want for piece of mind
Tbill has no purchase limit and will pay out regardless of debt ceiling.

Sign up for a Slickdeals account to remove this ad.

Jun 1, 2023
447 Posts
Joined Nov 2011
Jun 1, 2023
User1654112
Jun 1, 2023
447 Posts
Quote from nowayman :
Tbill has no purchase limit and will pay out regardless of debt ceiling.
Tbill is also locked up for however long the duration is
4
Jun 1, 2023
159 Posts
Joined Apr 2009
Jun 1, 2023
Lyrrad
Jun 1, 2023
159 Posts
Quote from vinoth08 :
I think, there is no state tax only if you buy thro treasury direct.
If you buy thro any broker state tax applies…
Correct me if I'm wrong…
This is incorrect.

Treasury Bill interest is state tax-exempt whether you buy it from a brokerage, either at auction or on the secondary market, the same as if it is purchased at auction at Treasury Direct.

It could get a bit more complicated if you sell the bill before maturity, with part of the difference in price being considered interest and the rest a short-term capital gain or loss. A capital gain or loss would not be state-tax exempt.

Quote from Knockknock13 :
Tbill has purchase limits and more over if debt ceiling fails its a risk
Its peoples interest what they want for piece of mind
T-Bills do not have meaningful purchase limits for the vast majority of people. The limit at auction was recently raised to $10 million from $5 million for each security type and term, for each auction.


You can also buy large amounts on the secondary market. The Treasury can ask for more information if you try to buy a large amount of a single bond. For example, they requested more information [treasurydirect.gov] about everyone that owned $5.2 billion or more of the February 2024 note last year.

I agree that the debt ceiling can create a default risk with any Treasury investment. Note that other cash investments also have risks. For example, the FDIC holds most of its investments in Treasuries. It is very difficult to compare these risks, so I won't attempt to do so here.

Quote from BIG_HARRY_SACKS :
Tbill is also locked up for however long the duration is
Generally, T-Bills are very liquid and if held at a brokerage, can be sold on the secondary market on any bond market trading day.

Different brokerages may have different bid prices, so you may be able to get a better price when selling at one brokerage than others. Not all brokerages may support secondary market trades, but you should be able to transfer your bills to one that does.

If held at TreasuryDirect, it can be difficult to sell before maturity, since it would first need to be transferred to a brokerage, which can be onerous.
Last edited by Lyrrad June 1, 2023 at 01:17 AM.
Jun 1, 2023
1,563 Posts
Joined Apr 2009
Jun 1, 2023
nowayman
Jun 1, 2023
1,563 Posts
Quote from BIG_HARRY_SACKS :
Tbill is also locked up for however long the duration is
I sold a tbill today, took 10 seconds
Jun 1, 2023
1,597 Posts
Joined Oct 2013
Jun 1, 2023
irrationalconsumer
Jun 1, 2023
1,597 Posts
Quote from Knockknock13 :
Tbill has purchase limits and more over if debt ceiling fails its a risk
Its peoples interest what they want for piece of mind
If US government defaults, every bank/broker you know would default too
Jun 1, 2023
14,505 Posts
Joined Jan 2010
Jun 1, 2023
Ride_The_Sky
Jun 1, 2023
14,505 Posts
Just remember tbill yield is for the year not duration, just like you deposit. Also when you buy, you don't pay the amount you buy, you pay the amount that will get you the total you selected. So if you buy 52 weeks at 5% of $1000, you will actually pay $952 and they will give you back $1000 at the end of 52 weeks..
If you buy 26 weeks, it will be half of the difference, or 13 weeks will be 1/4 of that and so on..
Jun 1, 2023
1,915 Posts
Joined Aug 2011
Jun 1, 2023
robrob777
Jun 1, 2023
1,915 Posts
Webull is the most awesome app to track stocks... However i would never trust it with my savings... I don't know why... Just gut feeling
Jun 1, 2023
1,915 Posts
Joined Aug 2011
Jun 1, 2023
robrob777
Jun 1, 2023
1,915 Posts
Quote from bjgfromthe703 :
The Vanguard settlement fund option VMFXX (Vanguard Federal Money Market Fund) has a yield just above 5% right now with the added perk of not having an awful UI and referral notification spam like WeBull.

https://investor.vanguard.com/inv...file/vmfxx
I have been parking cash in this for years.. Beats Marcus and most online savings accounts

Sign up for a Slickdeals account to remove this ad.

Pro
Jun 1, 2023
11,189 Posts
Joined May 2007
Jun 1, 2023
superslickz
Pro
Jun 1, 2023
11,189 Posts
Quote from robrob777 :
I have been parking cash in this for years.. Beats Marcus and most online savings accounts

This is why I love SD. Thanks for this. I already have a Vanguard account and never knew about this. Do you know how much this is insured for by fdic (or spic)? 250k single and 500k joint? Is it for the whole account?
Last edited by superslickz June 1, 2023 at 04:07 PM.

Popular Deals

View All

Trending Deals

View All