Gyroscopic Investing

https://www.depositaccounts.com/savings/

Northpointe bank is at 2.05% but I don't trust them to hold their rates.

Insight 5%s are going away
https://www.reddit.com/r/churning/comme ... 5_savings/

https://personal.vanguard.com/us/funds/ ... irect=true
Would federal money market @ 1.68% be state tax free?

Especially after you take the tax benefits into account, 3 month T bills are handily beating all money markets and savings accounts right now (possible exception noted above by MangoMan). 6 month/1 year T bills are beating CDs of much longer durations.

It was never so easy to stick with PP orthodoxy! And, what's up with the banks? Do they not realize how easy it is now to buy T bills with autoroll, or have people just not discovered that yet?

sophie wrote: ↑Fri May 25, 2018 6:53 am Especially after you take the tax benefits into account, 3 month T bills are handily beating all money markets and savings accounts right now (possible exception noted above by MangoMan). 6 month/1 year T bills are beating CDs of much longer durations.

It was never so easy to stick with PP orthodoxy! And, what's up with the banks? Do they not realize how easy it is now to buy T bills with autoroll, or have people just not discovered that yet?

Just guessing that banks can't really raise interest rates on savings accounts much because they make much of their money on the spread between short and long rates. If they lend out at prevailing mortgage rates and pay, say, what one-year T-Bills are earning, there's not a lot of meat left on the bone.

This flattening yield curve is bad news for them.

I'm with you, Sophie. For the foreseeable future much of my cash is in T-Bills.

Marcus is 1.80% today, Ally is 1.65%.

Desert wrote: ↑Wed Jun 27, 2018 5:04 pm Another option is Vanguard Treasury MM, VUSXX, currently yielding 1.81 percent. $50K minimum, unfortunately. I don't believe they'll kick you out of your balance drops though.

That’s correct. I’ve had under 10K in there for years. Now that it’s paying dollars and not cents, I’m going to put proceeds from matured tbills in there.

CIT Bank Money Market has upped to 1.85%. Cash is feeling comfy.

eufo wrote: ↑Wed Jun 27, 2018 8:47 pm CIT Bank Money Market has upped to 1.85%. Cash is feeling comfy.

It shouldn't be feeling comfortable at all...you are losing .95% real as inflation is running about 2.8% now.

Kbg wrote: ↑Thu Jun 28, 2018 9:11 am

eufo wrote: ↑Wed Jun 27, 2018 8:47 pm CIT Bank Money Market has upped to 1.85%. Cash is feeling comfy.

It shouldn't be feeling comfortable at all...you are losing .95% real as inflation is running about 2.8% now.

But yet it does.

Ha. Well, as Kevin M said over at Bogleheads, that 2.8% figure is just a 12-month snapshot.

eufo wrote: ↑Thu Jun 28, 2018 12:45 pm

Kbg wrote: ↑Thu Jun 28, 2018 9:11 am

eufo wrote: ↑Wed Jun 27, 2018 8:47 pm CIT Bank Money Market has upped to 1.85%. Cash is feeling comfy.

It shouldn't be feeling comfortable at all...you are losing .95% real as inflation is running about 2.8% now.

But yet it does.

Captain, illogical. :-)

Kbg wrote: ↑Thu Jun 28, 2018 1:37 pm

eufo wrote: ↑Thu Jun 28, 2018 12:45 pm

Kbg wrote: ↑Thu Jun 28, 2018 9:11 am

It shouldn't be feeling comfortable at all...you are losing .95% real as inflation is running about 2.8% now.

But yet it does.

Captain, illogical. :-)

Feelings are always illogical, but as long as I stick to a logical plan, all is good.

Ally 1.75%
Marcus 1.80%

Note the effects of the FOMC’s deliberate flattening of the yield curve on investors’ Deep Cash choices:

3 month Treasury = 1.96%
1 year Treasury = 2.37%
30 year Treasury = 2.93%

1. Given that a 1 year T-bill now captures an astounding 93% of the yield of a 30 year T-bond, AND that the FOMC is transparently promising to raise the Fed Funds rate twice before the end of 2018, anyone who buys a longer term Treasury or CD seems to be buying unnecessary interest rate risk.

2. While I bonds for “deep cash” currently offer a comparatively attractive 2.52% (2.70% tax equivalent yield for this MN resident), and I purchased my usual limit of $5,000 paper I bonds with my 2017 IRS refund earlier this year, I will still be waiting until the November 2018 reset to purchase electronic I bonds from Treasury Direct in anticipation that there is almost certainly another increase in the I bond fixed rate component in the offing.

MangoMan wrote: ↑Sun Jul 08, 2018 8:19 am

ochotona wrote: ↑Sun Jul 08, 2018 7:27 am Ally 1.75%
Marcus 1.80%

Meh
(Quasi Treasury) Vanguard Federal MM 1.84%
Purepoint 1.9%
Vanguard Prime MM 2.04%

Though I have wondered about just buying 30-day Bills. I don't like the TreasuryDirect user interface, though I use it for I-Bonds. Plus what if we had a real emergency just after buying some 30-day Bills? My wife would never, ever use TD. Schwab? I'd hate to have to remember to reinvest the proceeds. If you are a day late, you give up all the rate advantages.

Desert wrote: ↑Sat Jul 14, 2018 7:47 am I agree with pug, it appears that Fidelity is the best platform right now for short treasuries, due to the auto-roll.

Would you buy 30 day or go out to a year, as Jhogue has suggested? That ~2.34% for 1 year looks good.

I'll probably stick with Vanguard Treasury MM at 1.84% for now, since I don't want to open another account right now.

I'm going to shut down Marcus. Indeed, no point in it. Fidelity set-up, funding underway.

I like using Fidelity to buy and own T-bills directly. It completely avoids the manager risk associated with ETFs and mutual funds. Also, the expense ratio (0.00% !!!) simply cannot be beat.

When I first started buying T-bills, I wondered if Fidelity might be tempted to pump up the bid/ask spread to pay for this free service. As far as I can tell, that is not the case. I occasionally check the spread and have found that it hovers around 0.03% for a current 1 year T-bill.

I don’t know for sure, but I am guessing that Fidelity can make this deal available for small retail investors because they have to hold a massive amount of T-bills to support their many mutual funds and other investment products. Perhaps some demand is also be coming from their institutional investors for whom the FDIC cap of $250,000 makes CDs unsuitable.

I can't wait! Big slug of dough coming out of Marcus to Fidelity. Maybe tomorrow.

Fidelity posts the T-Bill offers after 2 pm Eastern on Thursdays. I bought some secondary market Bills today.

Ally paying 2% now