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Best places to park around 25K?

Posted: Fri Oct 09, 2020 8:22 pm
by Zillions
I want to park 25K in a high yield savings account. This is part of our downpayment, earning 0.1% interest in a local credit union. What could I possibly get with a money market fund at TD Ameritrade or at Fidelity?

Thanks

Re: Best places to park around 25K?

Posted: Fri Oct 09, 2020 8:57 pm
by bloom2708
Ally or Marcus are .6%.

A CD maybe .75%.

No free lunch.

Actually, if you skip a couple lunches and leave the money where it is, you likely come out the same.

I would just leave it where it is.

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 12:19 am
by anoop
Zillions wrote: Fri Oct 09, 2020 8:22 pm What could I possibly get with a money market fund at TD Ameritrade or at Fidelity?
Most (all?) Fidelity MM funds are clamped at 0.01%. They would be negative if Fidelity wasn't foregoing a portion of the fund's expenses (average ER is around 0.4%).

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 12:28 am
by manatee2005
Zillions wrote: Fri Oct 09, 2020 8:22 pm I want to park 25K in a high yield savings account. This is part of our downpayment, earning 0.1% interest in a local credit union. What could I possibly get with a money market fund at TD Ameritrade or at Fidelity?

Thanks
Where’s the rest of your down payment?

Btw “high yield savings accounts” don’t exist anymore.

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 12:47 am
by ChiKid24
Best return these days are bank bonuses. Search doctorofcredit.com. You open a new account, keep the money there for a bit of time, get a few hundred bucks bonus.

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 1:01 am
by Doctor Rhythm
ChiKid24 wrote: Sat Oct 10, 2020 12:47 am Best return these days are bank bonuses. Search doctorofcredit.com. You open a new account, keep the money there for a bit of time, get a few hundred bucks bonus.
Agree as long as you’re willing to deal with some of the hassles. If you and your (?) spouse can scrounge up another $5000, you can open two $15,000 accounts at Citibank and pull in $400 each for a 2.67% one time return.

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 4:09 pm
by Zillions
Doctor Rhythm wrote: Sat Oct 10, 2020 1:01 am
ChiKid24 wrote: Sat Oct 10, 2020 12:47 am Best return these days are bank bonuses. Search doctorofcredit.com. You open a new account, keep the money there for a bit of time, get a few hundred bucks bonus.
Agree as long as you’re willing to deal with some of the hassles. If you and your (?) spouse can scrounge up another $5000, you can open two $15,000 accounts at Citibank and pull in $400 each for a 2.67% one time return.
We can cough up the other $5000 to make your suggestion work. But what hassles should we be wary / aware of? Thanks!

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 4:10 pm
by Zillions
manatee2005 wrote: Sat Oct 10, 2020 12:28 am
Zillions wrote: Fri Oct 09, 2020 8:22 pm I want to park 25K in a high yield savings account. This is part of our downpayment, earning 0.1% interest in a local credit union. What could I possibly get with a money market fund at TD Ameritrade or at Fidelity?

Thanks
Where’s the rest of your down payment?

Btw “high yield savings accounts” don’t exist anymore.
All at the same credit union. I thought I should get 25K out and put it in a savings accounts with a higher yield.

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 4:13 pm
by Zillions
BTW, what are treasuries yielding now? We have an 18 month time period before we need our "downpayment". Any suggestions for me? I did consider corporate bond funds (VWETX) but that may be a stupid move at this time? I'm in a brain fog and would appreciate any "conservative" alternatives at this time.

Thanks!

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 4:18 pm
by ChiKid24
Zillions wrote: Sat Oct 10, 2020 4:09 pm
Doctor Rhythm wrote: Sat Oct 10, 2020 1:01 am
ChiKid24 wrote: Sat Oct 10, 2020 12:47 am Best return these days are bank bonuses. Search doctorofcredit.com. You open a new account, keep the money there for a bit of time, get a few hundred bucks bonus.
Agree as long as you’re willing to deal with some of the hassles. If you and your (?) spouse can scrounge up another $5000, you can open two $15,000 accounts at Citibank and pull in $400 each for a 2.67% one time return.
We can cough up the other $5000 to make your suggestion work. But what hassles should we be wary / aware of? Thanks!
Just make sure you read the detailed requirements to get the bonus as well as how to avoid monthly fees. The doctor of credit website does a detailed writeup to walk you through it. See link here:
https://www.doctorofcredit.com/citi-400 ... -required/

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 4:27 pm
by ColoRetiredGirl
I parked $24,999.99 in a checking account at Bellco Credit Union with an APY of 2.25 percent. The hassle is you need to have one monthly direct deposit transaction, one monthly online log in and 15 debit card purchases a month not including ATM transactions. The first two are easy but 15 swipes is a challenge. There are no monthly maintenance fees or balance requirements.

If you do not meet the requirements, the the rate is 0.05 percent APY.

There must be other credit unions with similar products.

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 4:28 pm
by Doctor Rhythm
Zillions wrote: Sat Oct 10, 2020 4:09 pm
Doctor Rhythm wrote: Sat Oct 10, 2020 1:01 am
ChiKid24 wrote: Sat Oct 10, 2020 12:47 am Best return these days are bank bonuses. Search doctorofcredit.com. You open a new account, keep the money there for a bit of time, get a few hundred bucks bonus.
Agree as long as you’re willing to deal with some of the hassles. If you and your (?) spouse can scrounge up another $5000, you can open two $15,000 accounts at Citibank and pull in $400 each for a 2.67% one time return.
We can cough up the other $5000 to make your suggestion work. But what hassles should we be wary / aware of? Thanks!
Here’s their website.

Read the fine print to make sure the terms and conditions are acceptable. Setting up the accounts and funding them through electronic transfers from another bank was painless for us. They say you have to maintain the $15K balance for 60 days, but it could take up to another 90 days for them to pay up. In meantime, you need to keep the account open with a minimum balance of $10K to waive the maintenance fee. They also don’t make it easy to transfer money out of Citibank. It’s doable of course, but feels needlessly opaque and complicated.

One advantage of Citibank’s offer compared to most sign up bonus offers is that there isn’t a direct deposit requirement.

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 4:29 pm
by Katietsu
If you want to make a bit on it, you could go after a bank bonus. For instance, one bank bonus right now requires opening a checking account and depositing $15,000 into the checking account and a total of $25,000 of deposits at the bank. (Other $10,000 can be in same or a different account.). The interest rate is basically nothing. But the bonus is $500 and is paid after 90 days. This is effectively 8% interest over 3 month's. Even if you leave the funds sit there for a year, it will be the equivalent of over 2% interest.

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 7:48 pm
by manatee2005
ColoRetiredGirl wrote: Sat Oct 10, 2020 4:27 pm I parked $24,999.99 in a checking account at Bellco Credit Union with an APY of 2.25 percent. The hassle is you need to have one monthly direct deposit transaction, one monthly online log in and 15 debit card purchases a month not including ATM transactions. The first two are easy but 15 swipes is a challenge. There are no monthly maintenance fees or balance requirements.

If you do not meet the requirements, the the rate is 0.05 percent APY.

There must be other credit unions with similar products.
When you go to a grocery store pay for each item separately :mrgreen:

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 7:59 pm
by cshell2
manatee2005 wrote: Sat Oct 10, 2020 7:48 pm
ColoRetiredGirl wrote: Sat Oct 10, 2020 4:27 pm I parked $24,999.99 in a checking account at Bellco Credit Union with an APY of 2.25 percent. The hassle is you need to have one monthly direct deposit transaction, one monthly online log in and 15 debit card purchases a month not including ATM transactions. The first two are easy but 15 swipes is a challenge. There are no monthly maintenance fees or balance requirements.

If you do not meet the requirements, the the rate is 0.05 percent APY.

There must be other credit unions with similar products.
When you go to a grocery store pay for each item separately :mrgreen:
I've done that. I pick a non busy time, go to the self-checkout with 10 yogurts and ring them all up one at a time.

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 8:20 pm
by willthrill81
bloom2708 wrote: Fri Oct 09, 2020 8:57 pm No free lunch.
I see that you haven't been experienced Costco's samples yet! :D

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 8:28 pm
by 000
I would do HYSA at 0.60%+ if absolutely sure I will need to money for a down payment soon. Or a CD less than or equal to the expected term.

If I only kinda maybe need the money, I would probably do 80% cash and 20% stocks or REITs.

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 8:28 pm
by ivgrivchuck
Zillions wrote: Sat Oct 10, 2020 4:13 pm BTW, what are treasuries yielding now? We have an 18 month time period before we need our "downpayment". Any suggestions for me? I did consider corporate bond funds (VWETX) but that may be a stupid move at this time? I'm in a brain fog and would appreciate any "conservative" alternatives at this time.

Thanks!
With bond funds the duration risk is almost entirely one-sided. You have little to win and much to lose.

CDs, savings accounts, i-bonds or sign up bonus hunting are your best options.

Re: Best places to park around 25K?

Posted: Sat Oct 10, 2020 8:42 pm
by mokaThought
Zillions wrote: Fri Oct 09, 2020 8:22 pm I want to park 25K in a high yield savings account. This is part of our downpayment, earning 0.1% interest in a local credit union. What could I possibly get with a money market fund at TD Ameritrade or at Fidelity?

Thanks
I don't think you'll find any viable options at a brokerage. Besides the low interest rate environment, explaining to my mortgage lender that a brokerage money market account is cash-equivalent was a royal pain for me as of late, and then we still had to transfer it to a credit union to convert it to a cashier's check (because I despise the potential for wire transfers going wrong).

If you are absolutely sure about that 18-month timeframe, the most aggressive I would go is I-bond. There's a $10k per individual purchase limit, and your money is locked up tight for one year. If there's any chance that 18-month wait you mentioned could be shorter, I wouldn't want to have the funds locked up.

The most aggressive I would go is bank CD. Navy Federal, for example, offers a once-per-lifetime-per-individual, 3.50% APY, 12-month share certificate with a $3,000 balance limit. You might find some similar teaser rates elsewhere.

Re: Best places to park around 25K?

Posted: Sun Oct 11, 2020 9:35 am
by Redlion
ColoRetiredGirl wrote: Sat Oct 10, 2020 4:27 pm I parked $24,999.99 in a checking account at Bellco Credit Union with an APY of 2.25 percent. The hassle is you need to have one monthly direct deposit transaction, one monthly online log in and 15 debit card purchases a month not including ATM transactions. The first two are easy but 15 swipes is a challenge. There are no monthly maintenance fees or balance requirements.

If you do not meet the requirements, the the rate is 0.05 percent APY.

There must be other credit unions with similar products.
Sound like a major hassle to make $500 in a year.

Re: Best places to park around 25K?

Posted: Sun Oct 11, 2020 10:41 am
by supalong52
You couldn't pay me enough to force me to make 180 swipes a year on debit.