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Old 08-10-2019, 08:21 PM
 
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I have over $15,000 just sitting in a checking bank account. I think it would be wise to move it into a high yield account so at least I could get some profit yearly. Which is the best high yield account and are there any risks involved?
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Old 08-10-2019, 08:29 PM
 
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Depends. Do you have a long horizon (like 20 years)? If so, then many financial planners would recommend mostly stocks (in the form of mutual funds, the easier and relatively inefficient being index funds).
Or, do you plan on buying a car or putting a down payment on a house in the next year? That's the other extreme. Right now with interest rates relatively low, there it isn't easy to make a lot of money guaranteed.
Do you have a child or nephew and are you like 75 years old? You might want to gift assets to him.
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Old 08-10-2019, 10:25 PM
 
Location: Sandpoint, Idaho
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will be tough now. A few months ago, you could get 3.5% on a 5 year CD.

Anything paying yields will be have risk.

Corporate bonds, decent dividend yields from companies with stable, proven earnings.

Do not go on a goose chase for high yields. Lower expectations.
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Old 08-11-2019, 04:46 AM
 
Location: The Triad (NC)
29,037 posts, read 63,203,245 times
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Quote:
Originally Posted by FrankAce View Post
I have over $15,000 just sitting in a checking bank account.
That sounds like the start of nice emergency fund (6-12 months OOP living costs).
Ask the bankers there what they offer in CD's then expect to have that money set aside for a LONG time.

Quote:
I think it would be wise to move it into a high yield account so...
Higher certainly (like CD's). But don't think of it in terms of "investments" and "returns".
For that purpose... start depositing X% of your gross income into actual investment accounts; like 15%.


Talk to your employer about 401K's (matched by them) and automatic deposits into CD's.
Then start calculating your personal budget based on the NET income after these and the payroll withholding.

Last edited by MrRational; 08-11-2019 at 04:57 AM..
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Old 08-11-2019, 09:10 AM
 
24 posts, read 6,493 times
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Quote:
Originally Posted by SoCal_Native View Post
Depends. Do you have a long horizon (like 20 years)? If so, then many financial planners would recommend mostly stocks (in the form of mutual funds, the easier and relatively inefficient being index funds).
Or, do you plan on buying a car or putting a down payment on a house in the next year? That's the other extreme. Right now with interest rates relatively low, there it isn't easy to make a lot of money guaranteed.
Do you have a child or nephew and are you like 75 years old? You might want to gift assets to him.


I'm in my late 30s and don't have any kids. I've never had a car before but it could be on the horizon. I plan on moving into a new apartment soon. Just applied for a secured credit card so I could start having credit. I never had credit before.




Quote:
Originally Posted by Sandpointian View Post
will be tough now. A few months ago, you could get 3.5% on a 5 year CD.

Anything paying yields will be have risk.

Corporate bonds, decent dividend yields from companies with stable, proven earnings.

Do not go on a goose chase for high yields. Lower expectations.

What kind of risk?
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Old 08-11-2019, 04:14 PM
 
Location: Brawndo-Thirst-Mutilator-Nation
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Rate are probably headed back to near 0%, so good luck on that.
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Old 08-11-2019, 06:48 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Start a vanguard or Fidelity or Schwab account and link it to your bank, then transfer to their MM at will (or buy some high return bond funds. (NAV risk).

Gnma and Gov MM are ~2% at the moment. Ok for reserves / emergency funds.... But any other funds (longer term) should be invested, not sitting in cash.

If you are currently using a bank.... Consider switching to a Credit Union. Much better rates on loans and savings.... And you are an owner member. Banks are not as customer centric. The a over financial firms also offer banking services.
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Old 08-11-2019, 07:27 PM
 
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Keep your bank account but move most of the money into a higher yield acct.


Ally has online savings - currently 1.90%
https://www.ally.com/bank/online-savings-account/


American Express has Personal Savings - currently 2.10%
https://www.americanexpress.com/pers...ings/home.html


High Yield Online Savings Acct with Marcus by Goldman Sacs is 2.15%
https://www.marcus.com/us/en/savings...E&gclsrc=aw.ds
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Old 08-12-2019, 06:45 PM
 
24 posts, read 6,493 times
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Quote:
Originally Posted by sware2cod View Post
Keep your bank account but move most of the money into a higher yield acct.


Ally has online savings - currently 1.90%
https://www.ally.com/bank/online-savings-account/


American Express has Personal Savings - currently 2.10%
https://www.americanexpress.com/pers...ings/home.html


High Yield Online Savings Acct with Marcus by Goldman Sacs is 2.15%
https://www.marcus.com/us/en/savings...E&gclsrc=aw.ds



Why should I keep the bank account?
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Old 08-12-2019, 07:55 PM
 
68 posts, read 30,083 times
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Quote:
Originally Posted by FrankAce View Post
Why should I keep the bank account?
Because you’ll need it for your everyday needs, to make the payments you always do. Savings accounts (high-yield ones are offered by Ally Bank and American Express, among others, like someone already said) only let you make six withdrawals a month. They are meant for money to sit there and earn you a little interest.

If your current bank charges you a maintenance fee and you want to get rid of that, you may want to just use Ally Bank for everything. In that case you need to open both a checking account and a high-yield savings accounts. They don’t charge any fees. Even cash withdrawals from local ATMs are free to you — they’ll reimburse fees within reason. Check their rules at ally.com. With an online bank you do your business through their app, on their website and by phone. The main banking convenience you may miss is depositing cash, in case you do that. If you regularly deposit cash into your account, then you need to look at a credit union with a branch in your area, that won’t charge you anything. Good luck!
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