Best solution I've found and - unlike the tricks current banks are pulling* - the interest rate rises over time with treasury rates.
https://www.newtekbank.com/person...d-savings/
*CapitalOneBank created a *new* Savings account with some silly name and your current savings account stayed at basically 0% and you had to open a new account (it was quick) and send the funds over. So now I have an empty, worthless old savings account I've had for >15 years and had to go update routing numbers on various sites. That got me looking around.
Newtek has been around decades, was a BDC co that converted to a bank at beginning of the year. As a result it doesn't have a huge portfolio of underwater treasuries and can profitably pay depositors market rates.
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I have SGOV as well
I have no experience with SGOV.
FOUR months after us slickdealers had it figured out the WSJ actually ran a story on precisely this: https://www.wsj.com/finance/inves...s-b9adc1e9
"Fucillo isn't alone. When the Federal Reserve started raising interest rates in 2022, many customers of the McLean, Va., bank assumed their rates would go up. Instead, Capital One is paying them far below the 4.35% it advertises on its main savings account."
Newtek is still paying 5.25% and has a 5.5% 6 mo CD now
I have no experience with SGOV.
SGOV is an ETF which can be sold at anytime during the day and settles in two days. As others have mentioned it goes up and down from the beginning of the month till the end of the month and then pays a dividend. Have been following and SGOV and I prefer the money market. You don't have to sell or buy SGOV to keep receiving the interest/dividend but if you sell before the dividend it will be considered a capital gain. To each their own.
You should be moving to Schwab in May and the new rules for all brokerages that start soon are that all trades will settle in one day instead of two. Whenever I make a trade/have cash in Ameritrade I automatically put in to buy the SNSXX to get some interest for however long it is going to sit there and then sell it when I am doing my next trade. You receive the interest as a dividend once a month.
As far as guarantees, these funds/ETFs are all treasury bills so if you consider Treasury bills guaranteed then you can consider these the same.
Feel free to pm me if you have any other questions and good luck!
SGOV is an ETF which can be sold at anytime during the day and settles in two days. As others have mentioned it goes up and down from the beginning of the month till the end of the month and then pays a dividend. Have been following and SGOV and I prefer the money market. You don't have to sell or buy SGOV to keep receiving the interest/dividend but if you sell before the dividend it will be considered a capital gain. To each their own.
You should be moving to Schwab in May and the new rules for all brokerages that start soon are that all trades will settle in one day instead of two. Whenever I make a trade/have cash in Ameritrade I automatically put in to buy the SNSXX to get some interest for however long it is going to sit there and then sell it when I am doing my next trade. You receive the interest as a dividend once a month.
As far as guarantees, these funds/ETFs are all treasury bills so if you consider Treasury bills guaranteed then you can consider these the same.
Feel free to pm me if you have any other questions and good luck!
I also have an IRA with larger amount. Of course I don't need to concern myself with the state tax free there. Would this still be the way to go? I'm doing the same thing there.
I really appreciate this info. This is what I needed.
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I also have an IRA with larger amount. Of course I don't need to concern myself with the state tax free there. Would this still be the way to go? I'm doing the same thing there.
I really appreciate this info. This is what I needed.