{"id":5667,"date":"2023-12-08T11:58:37","date_gmt":"2023-12-08T18:58:37","guid":{"rendered":"https:\/\/jeremywhittaker.com\/?p=5667"},"modified":"2023-12-08T12:09:56","modified_gmt":"2023-12-08T19:09:56","slug":"maximizing-cash-returns-in-a-rising-rate-environment","status":"publish","type":"post","link":"https:\/\/new.jeremywhittaker.com\/index.php\/2023\/12\/08\/maximizing-cash-returns-in-a-rising-rate-environment\/","title":{"rendered":"Maximizing Cash Returns in a Rising Rate Environment"},"content":{"rendered":"\n

In this time of rising Fed rates<\/a>, it’s a good time to explore the best spots for your cash. To give you a hand, I’ve compiled some auto-updating options.<\/p>\n\n\n\n

To summarize: For easy access, high-yield savings accounts are hard to beat. Want to lock in a rate? Consider CDs or government bonds<\/p>\n\n\n\n

For those who prioritize accessibility, high-yield savings accounts are unbeatable. And if you’re aiming for a little more yield, CDs could be your ticket. Right now, Total Direct Bank<\/a> is offering a 3-month CD at 5.66%. Stretch that to a 6-month term, and West Town Bank & Trust<\/a> ups the ante to 5.88%.<\/p>\n\n\n\n

I’ve been a fan of keeping my cash within easy reach, so while those CD rates are attractive, I’m leaning toward Milli.bank<\/a>‘s high-yield savings account at 5.5%. I’ve typically parked my funds in Vanguard’s VMFXX<\/a> through my brokerage account at Vanguard<\/a>, but Milli’s rates got me. Plus they appear to just be a subsidiary of First National Bank of Omaha<\/a>. I’ve got some money in the 3-month CDs, but is a tiny bump in interest worth the lock-in? For me, not so much. Unless I know I won’t need the cash. <\/p>\n\n\n\n

Remember, there’s a cap on insured amounts in the bank accounts\u2014$250k per person named on the accont. So $500k per join account. Sure, the Fed always bails out the banks but why roll the dice? My strategy? Max out the savings and CDs to the insured limit, and then overflow goes into Vanguard’s VMFXX. If you’re the type to diversify, Milli.bank<\/a> and Popular Direct<\/a>‘s accounts are both competitive choices.<\/p>\n\n\n\n

Staying informed on the optimal places for your cash is key in this climate of rate hikes. Whether you prioritize security, liquidity, or a bit extra on your return, the options are there.<\/p>\n\n\n\n

I’ve created these sites that dynamically monitor for the best yield on your cash. Feel free to monitor them if you’re looking for easy updates. <\/p>\n\n\n\n