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Safer than FDIC Savings Account & Higher Yield for Short Term Money

Rocky
edited August 2011 in Fund Discussions
Are there any funds you like that are

#1 as safe as FDIC savings accounts
#2 Pay a higher daily yield that I can get currently in savings accounts?

Currently I can get 1.0% to 1.15% at several FDIC insured savings accounts shown on this list
http://verybestcdrates.com/BestSavingsAccountRates/index.html

I can't find anything paying nearly as well at Vanguard. I could get short term bond funds, but they have some finite risk if rates go up due to their non-zero durations.

Thanks
Rocky
PS... Forgive me if this is the wrong place to ask this question.

Comments

  • tgeno
    Mutual funds are not insured. No risk, no reward.
  • Mindy
    Not to insult you or your question, but kind of like, "faster than a speeding bullet, more powerful than a locomotive" LOL


    http://www.intuitivewebdesigns.com/comics/graphics/superman/Up_Up_and_Away.jpg

  • Rocky
    edited August 2011
    Remember that money market FUNDs are mutual funds... my first fund was a money market mutual fund purchased in the 1980s that paid mid teens interest... 14% if I recall...

    I was hoping some here might know of some FUNDS (or savings accounts) that maybe paid more than the funds on the link I gave.

    My guess is most of the funds on that link pay 1% or more as a way to get new customers... paying a few tenths more interest than competition and advertising on some web sites could be cheaper than national TV/Radio advertising campaigns.

    I guess one distinction is a MM mutual fund won't usually have FDIC insurance while the savings accounts I listed do have FDIC...

    So for a MMMF you rely on the organization to not break the buck... not as safe as FDIC or USTs... so you probably have to take more risk.

    Anyway, I'd love to hear if anyone knows of a savings account with FDIC that pays more than what is listed on that link.

    thanks for the comments.
  • johnNjohnN
    what about
    http://www.money-rates.com/rewardschecking.htm
  • Rocky
    Thanks for the suggestion John. The problem with rewards checking accounts is they limit you to a very small (relative to what I have to invest) amount of money. The rates are impressive but if your limit is only $15,000... you still have to find a place for the rest and to me it is not worth having multiple accounts to get a reasonable return on small amounts.

    So far, 1.0% to 1.15% at several FDIC insured savings accounts shown on this list
    http://verybestcdrates.com/BestSavingsAccountRates/index.html
    is about the best I've found for amounts equal to the FDIC limits of $250,000.
  • hank
    Another possible problem is that as of late some financial institutions have begun charging a fee for every POS (point of sale transaction) which seems to run about 25 cents each time you use their debit card for a purchase, but could be higher. Not saying these do, but check out the fine print before leaping as it appears most on that list require some POS transactions to receive the interest rate.
  • VintageFreakVintageFreak
    edited August 2011
    To me this is the first wonder of the world

    WTF doesn't everybody take $25K of their hard earned money and put it in an FDIC insured rewards checking account and earn 4% interest and bitch about having to make 15 odd transactions they make ANYWAYS with their Credit Card?

    Why is earning 4% on only (sic) 25K a "Problem"? Why is making 15 transactions a "Problem"? But most importantly, WHY DO I BOTHER?!?!?!?!

    Harrrummmmmmppppppppphhhhhhhhhhh !!!
  • Rocky
    Rates still falling. Now the top rate on that survey is 1.01%

    I noticed American Exp raised its rate from 0.85% to 0.90%.... not a big deal but worth mention.

  • Rocky
    If you scroll down the "Best Savings Account Rates Survey" page, the top rate today is EverBank paying 1.01% with a 6-month Bonus Rate of 1.25%!

  • Rocky
    I noticed interest rates are starting to go up again.
  • Kenster1_GlobalValue
    Since this last thread in 2011-2012 --- savings interest rates have trimmed a tiny bit.

    Barclays is also in the game as they're a relative newcomer to offering online savings accounts in the US. Right now they're offering 0.90%.

    http://www.businesswire.com/news/home/20120507006053/en/Barclays-Introduces-Online-Savings-Account-Certificate-Deposit

    CapitalOne 360 Checking & Saving accounts are basically the ones they absorbed from ING Direct online checking & saving accounts.

    ===

    So what are you guys doing these days? Have some of you completely dump a traditional big bank and gone with an online checking & savings account?

    Or many of you have maintained a local checking account at a regional bank without excessive big bank fees but link that to one of the online savings accounts for higher interest rates?


  • JohnChisum
    Reply to @Kenster1_GlobalValue: When Chase took over WaMu, I sensed they would jerk around the former's customers and take away all the attributes that made WaMu popular. When it did happen, I fired them and now between American Century Brokerage checking and Charles Schwab Bank, I don't need a bricks and mortar bank any longer.
  • Rocky
    Reply to @Kenster1_GlobalValue:
    Barclays is also in the game as they're a relative newcomer to offering online savings accounts in the US. Right now they're offering 0.90%.
    It is nice to see others competing for our dollars again!
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