I'm getting a paltry interest rate at the local bank for my savings account and I'd like to do better and at the same time have reasonable access to the money if needed (probably start looking for a new house in a year or so, this will be part of our down payment).

I'm seeing advertised rates above 2% with a few places. For example Citi at 2.05% and VioBank at 2.27%.

I've not heard of VioBank before - anyone have any experience with them?

Any others I should be looking at?

Thanks!

Wealthfront.

High yield savings and low fee robo investing all from one account.

They change their rates as the market changes. Very transparent. Rates went up to 2.57, then now down to 2.07.

My robo investing is making 16.5%. I have money auto investing and auto saving.

I have the same question as the OP. But I want someplace safe, and not like those internet banking places of 10 years ago. I'd go the CD route too if the earnings are higher.

Fidelity and Pentagon Federal Credit Union (penfed.org) have pretty good rates. They may not be the best in the nation but both are solid companies.

My wife got our advisor to buy some California tax-free municipal bond funds. They get about 3%.

Thanks for mentioning Wealthfron, Aeteocles. That looks worth investigation as I'd like something more automatic than Fidelity or Vanguard.

You need the money in a year or two so you don't need to lose a bunch trying to make a few extra percent.
I'd try Fidelity or Vanguard and see what their higher yield savings is paying. Safe but a little higher than a bank.

quote:

Originally posted by sjtill:
My wife got our advisor to buy some California tax-free municipal bond funds. They get about 3%.

I had 5% munis for years until the rates went down and they all refinanced. Love munis.

The OP should shop banks and credit unions in his hometown. Someone is always higher than the rest.

This message has been edited. Last edited by: PD, November 01, 2019 06:31 AM

If possible consider a brokerage account from Vanguard (my choice) or Fidelity. I can move money easily and at no cost back and forth between my checking account and my Vanguard account to anything available from Vanguard including their money market funds.

There have been a couple very recent rate cuts so expect under 2 percent for money market funds.

https://investor.vanguard.com/...t-individual-account

https://investor.vanguard.com/...ss/month-end-returns

Wealthfront's Savings account is FDIC insured, not a money market account. Wealthfront says they provide $1 mil in coverage by spreading your deposits across multiple banking institutions.

If you need the money soon, I wouldn't do anything other than a high yield savings.

This message has been edited. Last edited by: Aeteocles, October 31, 2019 10:24 PM

If you have some risk tolerance this is paying 11%. I've owned for several years.

AllianzGI Convertible & Income Fund. NYSE:NCV

quote:

Originally posted by doublesharp:
If you have some risk tolerance this is paying 11%. I've owned for several years.

AllianzGI Convertible & Income Fund. NYSE:NCV

Just remember that junk bonds get hammered in recessions.

Not a savings account but AT&T stock pays 5.34% dividend. I don’t think they’re going away.

All good advice. Higher risk, higher reward. Money market accounts fluctuate daily in interest rates and have low overhead. Not FDIC insured, but have had money in them since interest rates were 16 percent. Not lost a penny. You get free checks etc. You can get a slightly higher rate with a CD set to mature at time you need it. Of course there is a penalty if you get money earlier.

Bonds are not risk free, and probably not a good choice short term. I have never taken a business course in my life, just read the WSJ daily for ten years. I have been fortunate to do well with my investments, have no debt, and paid for two private college educations including graduate work for my two daughters. I also have paid for three or four new cars for them over the years. I also buy the guns I want, with no regret.

Penfed Online Savings

American Express Online Savings

Discover Online savings

all pay around 1.9% APY currently; FDIC insured

great places to stash cash funds. some places use 'teaser' rates that drop in short time or have strings attached, high minimums, etc

of course there are higher yields available with concomitant higher risk

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I appreciate the advice guys, thank you.

I use Investors Bank. I began with 2.5% but the rate has slipped, I believe I'm at about 2% now.
No min. no fees.

Interest rates are dropping, Wealthfront just dropped to 1.87%

I'd agree with a blue chip stock paying above 4-5%. There are a lot of them.

quote:

Originally posted by doublesharp:
If you have some risk tolerance this is paying 11%. I've owned for several years.

AllianzGI Convertible & Income Fund. NYSE:NCV

Not to be snotty about it, but with that kind of return, how is the balance on your initial investment doing? I think it was Mark Twain that said "I'm not so much concerned with the return on my investment, as I am with the return OF my investment".