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The Best Place For Your Cash: Savings Accounts, Money Markets, or CDs?

Matt Derron 14 views

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I've been watching a few videos on investing and i was more interested in CDs, this video covered so much and I'm glad for the information you provided, crisp and clear And definitely, the investment method for me is definitely a CD, which i was already leaning towards, and this video helped me decide this option
Comment from : @Knockturnall1

Ultra short bond funds like GSY or NEAR 52 and you can sell it tomorrow Pays monthly
Comment from : @georgesontag2192

Great perspective Thank you
Comment from : @MetroWord

Bank CD's pay very little I buy Brokered CD's that are Non-callable Better interest and you can build a CD ladder to have them mature at different times
Comment from : @guzzi95

Beware of some online companies offering HYSAs Read the fine print They may be just an uninsured middleman depositing your money with an FDIC-insured bank If the middleman goes belly up, good luck getting your money back It could get held up in court for years because, technically, the bank holding your money didn't go broke; the middleman did I've read the horror stories
Comment from : @philparker6282

What about the I Bill's from the Treasury?
Comment from : @deesnoyl02

100 money market
Comment from : @StockSpotlightPodcast

I'm surprised this did not include treasury bonds; short term bonds are paying 5 and you can drip through three month bonds
Comment from : @tcpipman4638

HYSA #1
Comment from : @Coda1850

Is there some taxation difference between saving account and money markets which need to be taken into account?
Comment from : @foreverunknown23

Tip: If you have a money market fund that has some dividends from US Treasuries, you need to indicate this manually when you file your taxes The 1099 doesn't separate it for you I made this mistake my first year with mm funds Oops!
Comment from : @nutria12247

T-Bills purchased through Fidelity or from Treasury Direct-GOV are exempt from State Income Tax which could save you 5-7 depending on your state tax rate Yields right now are just above 5 with 12 mo maturity date T-Bills can be sold before 12 mo maturity date with a reasonable penalty if there is an emergency need Not as easy as Money Market but much better yield is baked into the return if you live in a state that charges 5-7 income tax! My short holdings are about 50/50 split between MM and T-Bills
Comment from : @ohmschool

For me, I've transitioned taxable cash to BOXX, currently 576 For IRA have cash 60/40 split between USFR (53) and SPHY (778) SPHY a little riskier so can dial-in to risk tolerance
Comment from : @pavXX

My emergency fund is in Fidelity Government Money Market Fund (SPAXX), they allow me to withdraw directly at any ATM as though it's cash, and they reimburse the ATM fees They are averaging 489 right now, but also have a high expense ratio at 042 I don't intend to switch any time soon I just wish they had some physical locations, but oh well
Comment from : @TheBassicBassist

Honestly these days rates on HYSA, CDs, and MM are very similar And with interest rates staying higher longer than expected, doesn’t this all boil down to differences in liquidity? I see little value in CDs given the overall economic context
Comment from : @AnthonyLopez-di5vv

One option is you may want to consider is TBIL or SGOV ETF's these you can buy through most brokrage accounts very liquid and very stable Maybe you could do a video and let us know what you think
Comment from : @jefferyhinson1135

Dividends > your videos
Comment from : @DarthDividend

We maintain a small cash balance with our brokerage backed up by a money market invested in US federal obligations Not mentioned are T Bills Short duration (8 weeks to a year) and currently have APYs from 53-55 Their tax equivalent yield is even better as they are not subject to state income tax if that applies It's easy to build a maturity ladder During the market doldrums of 2022 to early 2023 we had several consecutive months of maturities to employ if our allocation warranted some adjustment Risk is practically non-existent They are highly liquid should they need to be sold but would be subject to settlement time frames and fund transfers Depending upon the rate environment a sold T Bill could result in a gain or a loss but with short durations proper planning can avoid such complications I personally prefer them over CDs under the current interest environment
Comment from : @bruceanderson8179

Matt, great information, but is there a tax-exempt money market fund you could recommend? Thanks!
Comment from : @emtboss

HYSA and CD Both over 5 so I can’t complain so far
Comment from : @dg5617

From someone who uses a CD to hold their emergency fund, its useful if you think rates are getting cut soon (or that the market bthinks/b rates will be cut) and you want to hedge downside risk (ie interest rate risk) you would see in bond investing (which is what your version of MM funds are exposing yourself to)brbrI have a MM that functions as a HYSA, but i had never heard of the bond MFs refered to as MM accountsbrbrWhen it comes to bond investing people only ever think of defualt risk and almost never about reinvestment risk and interest rate risk Both of which are market forcesbrbrStrictly in terms for "safety funds" you want something liquid enough to be able to access them in case of an emergency, but not so liquid that you will be tempted to invest or spend on anything but true emergencies Just my thoughts
Comment from : @DaOberstCh

Biggest risk with CDs is actually that the CD gets called as rates fall Maybe more of an annoyance than a true risk but with a CD you get no upside on interest rates and all of the down
Comment from : @testit1902

Is VUSXX better than SGOV?
Comment from : @asmazda

Emergency fund has been in ibonds since the rate was around 10 Extra cash that I dont need in the near future is in the brokerage (primarily VOO) Have any savings that ebbs and flows in a HYSA
Comment from : @MeltingRubberZ28

Another great video, thank you!
Comment from : @mtombak

I have my cash in FIDELITY GOVERNMENT MONEY MARKET (SPAXX) 495
Comment from : @kevinpob

Another banger video! This channel is kind of a gem I don’t want people to flock too and over saturate 😂 I want it to a small group of people But that wouldn’t support the channel lol edit: I say 3-6 months living expenses in HYSA and the rest in money market or short term TBILLS
Comment from : @WtfReal