Choices for short term savings $300k +

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Topic Author
confused1
Posts: 56
Joined: Mon Jul 27, 2015 12:03 am

Choices for short term savings $300k +

Post by confused1 »

All

Currently saving for some large expenditures we have coming up in 9+ months - Large remodel in VHCOL area. $600k +.

So over the next 9 months we will have $300k - $600k in liquid savings. Currently have this in Ally but only earning 1.25% APR.

Partner and I have high income (in CA) and have already covered all obvious bases
401k Maxed out
Backdoor and mega backdoor Roths
Minimal loans and paying down mortgage in next 8 years

Wondering if there are any better options for the $$ in the short term or best to leave in Ally?

Thanks in advance
inverter
Posts: 490
Joined: Mon Jul 27, 2015 1:40 pm

Re: Choices for short term savings $300k +

Post by inverter »

Ally should be fine. Two comments:

1. Make sure the account is titled such that you are not above the FDIC limits.

2. If you are high income you could do something tax exempt, like VCTXX. You'll have to calculate whether it's worth it since it is currently lower yielding.
J295
Posts: 2848
Joined: Sun Jan 01, 2012 11:40 pm

Re: Choices for short term savings $300k +

Post by J295 »

inverter wrote: Wed May 27, 2020 4:04 pm Ally should be fine. Two comments:

1. Make sure the account is titled such that you are not above the FDIC limits.

2. If you are high income you could do something tax exempt, like VCTXX. You'll have to calculate whether it's worth it since it is currently lower yielding.
+1

A bit of a hassle, but you could get an extra thousand dollars with two capital one 360 account bonuses … They are paying an additional $500 per online savings account for accounts for $50,000 or more .... it is FDIC insured up to the FDIC limits. Current rate is 1.3% on the savings account.
Topic Author
confused1
Posts: 56
Joined: Mon Jul 27, 2015 12:03 am

Re: Choices for short term savings $300k +

Post by confused1 »

J295 wrote: Wed May 27, 2020 4:30 pm
inverter wrote: Wed May 27, 2020 4:04 pm Ally should be fine. Two comments:

1. Make sure the account is titled such that you are not above the FDIC limits.

2. If you are high income you could do something tax exempt, like VCTXX. You'll have to calculate whether it's worth it since it is currently lower yielding.
+1

A bit of a hassle, but you could get an extra thousand dollars with two capital one 360 account bonuses … They are paying an additional $500 per online savings account for accounts for $50,000 or more .... it is FDIC insured up to the FDIC limits. Current rate is 1.3% on the savings account.
Now there is an interesting idea, need to see if I we can open multiple accounts
EnjoyIt
Posts: 5492
Joined: Sun Dec 29, 2013 8:06 pm

Re: Choices for short term savings $300k +

Post by EnjoyIt »

J295 wrote: Wed May 27, 2020 4:30 pm
inverter wrote: Wed May 27, 2020 4:04 pm Ally should be fine. Two comments:

1. Make sure the account is titled such that you are not above the FDIC limits.

2. If you are high income you could do something tax exempt, like VCTXX. You'll have to calculate whether it's worth it since it is currently lower yielding.
+1

A bit of a hassle, but you could get an extra thousand dollars with two capital one 360 account bonuses … They are paying an additional $500 per online savings account for accounts for $50,000 or more .... it is FDIC insured up to the FDIC limits. Current rate is 1.3% on the savings account.
Citi is offering $1500 for $200k. You can do $200k now and once you get another $100k do it for your partner.and get an extra $3k with minimal effort.

Otherwise, Ally is just fine.
A time to EVALUATE your jitters: | https://www.bogleheads.org/forum/viewtopic.php?f=10&t=79939&start=400#p5275418
Topic Author
confused1
Posts: 56
Joined: Mon Jul 27, 2015 12:03 am

Re: Choices for short term savings $300k +

Post by confused1 »

Citi plus capital one looks like the best place - We have almost $300k saved today. Can split between one Citi and 2 capital one accounts
psychoslowmatic
Posts: 221
Joined: Fri Jul 19, 2013 2:34 pm

Re: Choices for short term savings $300k +

Post by psychoslowmatic »

Here’s a sorted list if you’re willing to chase bonuses:

https://www.doctorofcredit.com/best-ban ... t-bonuses/

And a guide:
https://www.doctorofcredit.com/a-beginn ... t-bonuses/

Enjoy!
EnjoyIt
Posts: 5492
Joined: Sun Dec 29, 2013 8:06 pm

Re: Choices for short term savings $300k +

Post by EnjoyIt »

Chase I believe has $2k for $250k as well
A time to EVALUATE your jitters: | https://www.bogleheads.org/forum/viewtopic.php?f=10&t=79939&start=400#p5275418
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anon_investor
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Re: Choices for short term savings $300k +

Post by anon_investor »

Look into no penalty CDs to lock in today's rates as rates keep dropping. Ally Bank and Marcus have no penalty CDs, so you can split ownership up between you and spouse to ensure full FDIC coverage.
Topic Author
confused1
Posts: 56
Joined: Mon Jul 27, 2015 12:03 am

Re: Choices for short term savings $300k +

Post by confused1 »

Checking this evening and APR on the citi accounts are really bad, think 0.12%.

So currently earning ~~ $220 pm in ally
This would drop to almost zero for 90 days but offset with $1500 bonus. End result $900 that will be heavily taxed leaving $450 in our pocket. Good idea but question the ROI.
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