Short Term holding suggestions

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Inthemix22
Posts: 14
Joined: Thu Oct 20, 2016 1:09 pm

Short Term holding suggestions

Post by Inthemix22 » Mon May 27, 2019 10:53 am

Is there anything better than Investors Bank right now with an APR of 2.5%....I need access to the money (Around 200K)...So Liquidity is key..

Living Free
Posts: 290
Joined: Thu Jul 19, 2018 7:31 pm

Re: Short Term holding suggestions

Post by Living Free » Mon May 27, 2019 11:30 am

I don't know of any FDIC savings accounts offering better than 2.5% after review of bankrate.com. Vanguard prime MM fund is less than 2.5% right now too. Some vanguard bond funds might have slightly higher yields, but then there's some concern for risk of principal.

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JoMoney
Posts: 7140
Joined: Tue Jul 23, 2013 5:31 am

Re: Short Term holding suggestions

Post by JoMoney » Mon May 27, 2019 11:35 am

I'm not familiar with "Investors Bank", but that looks like a pretty good rate.
It appears that's the top rate of the options shown here:
https://www.depositaccounts.com/moneyma ... arket.html

It's even slightly higher than Vanguard's (non-FDIC insured) money market accounts... I've just been using Vanguard because I already have an account with them, the rate has been consistently near the top, and because I don't want to bother with opening new accounts, additional tax forms, and shuffling through whoever currently is on top
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

mariezzz
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Joined: Mon Oct 02, 2017 11:02 pm

Re: Short Term holding suggestions

Post by mariezzz » Mon May 27, 2019 11:40 am

VMMXX is just barely under 2.5% (2.45%). It's very liquid - just a few days to transfer the money. Not FDIC guaranteed. Little risk though - depends on your risk tolerance whether it's worth an extra .2% on 200K.
Rate could drop, but still could the rate of a savings account. If you live in a state with income tax, some people advise certain MM accounts with tax-free munis (other threads at BHs discuss this).

Not sure if there is a limited # of transfers per month out of VMMXX (I at most do 3 transfers out of VMMXX monthly but usually 1, if any). Savings accounts have a limit of 6 transfers.

Topic Author
Inthemix22
Posts: 14
Joined: Thu Oct 20, 2016 1:09 pm

Re: Short Term holding suggestions

Post by Inthemix22 » Mon May 27, 2019 11:55 am

Thanks didn't even know Vanguard had something like this...makes it a lot easier!

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