stogie1020

I keep 6 months of expenses in a checking account at the bank. I currently have more there than just 6 month, but I feel like I should keep it 'handy' rather than dumping it into a long term portfolio.

I get no return for the checking account, virtually no return for a MM account and almost no return for a 6mo CD.

Bank is Chase.

Any ideas what to do with some surplus cash that won't tie it up indefinitely but will also generate some money?

Fibonacci

Dude, you're in the same bind as the rest of us. The FED is on a mission to prime the pump of an ever elusive recovery by promoting borrowing activity at the expense of savers. I linked an op-ed piece in another thread, but the cliffs notes version is this: Uncle Ben is forcing market participants to speculate.

So to answer your question, there is little yield for short term money.

doopstr

Sucks that Emigrant used to have the the highest rate of the online banks but now seems to have the lowest. They are at 1% while I see a few others at 1.3 and 1.4. Maybe I will move it to American Express, they are offering 1.3.

gatrhumpy

iTrader: (1)

I migrated from our First Command MMA to Bank of Internet. They used to have the highest rates as of about two months ago for their High-Yield Savings.

We're building up our savings slowly, and currently have about 3 months worth of expenses, and ultimate goal is a year of expenses built up and beyond.

I'm sure everyone has seen their savings rates go from 2-3% to under 1%.

Pete2010

Yup.. I remember freaking Citibank had a 4.9% yield... those days are long over...

gatrhumpy

iTrader: (1)

Whiskers

What's cash?

Will Y.

Something our wives try to keep from us.

stogie1020

Ugh, ok, thanks. Just didn't know what the cool kids were doing these days.

bsprinker

I haven't checked out savings rates on internet banks in a while...what are they offering nowadays?

I don't want to sound like a salesman (because I'm not), but the company that I work for offers 3.0% for our product that compares to a bank certificate of deposit. It's a product that requires no lock-in period, charges no setup fees, and gives the individual full access to their funds from day 1. It's kind-of like a cd, but there's no minimum commitment (like 6 months).

I work for a non-profit fraternal benefit organization. You might find something local that is similar to what my company offers. 3.0% is a lot better than 1.0%; especially when you're talking about 6 months of living expenses.
If you can't find anything local, I could help you if you're interested (pm me). I'm located in PA, but I believe that we are licensed to do business in Arizona.

stogie1020

BSprinkler, could you PM me the info on your product? Thanks.

Right now, 3% sounds good (crazy, I know)..

gatrhumpy

iTrader: (1)

PM me too! Me too!

Moog-Type-S

Stay tuned......in a few years interest rates are going to skyrocket.

gatrhumpy

iTrader: (1)

You think?

Scrib

I am whoring cash right now. May not be getting shit on return, but teh Scribby is a bit nervous about the markets these days....

bsprinker

I'll get those PM's out to you guys sometime later today (Friday). I'll provide you some general info and my contact information so that you can understand the specifics of the product. It's a great deal compared to what other financial institutions are paying these days. And it's mainly because we are a non-profit and pay no income taxes.

gr8ness97

iTrader: (5)

Send me some info too.

And Doesnt a credit union offer some okay rates? Just sitting on cash myself

bsprinker

the pm's have been sent. Anybody that's interested, just let me know.

stogie1020

Thanks BSpriner

thunder04

iTrader: (1)

I guess I'm lucky. I bank with a local (well local to my old residence) credit union and my checking account earns 2.5% a year. The only requirement is that you use your debit card (either debit or credit transactions) a minimum of 15 times a month and log into their online banking site once a month...requirements I easily meet. If you don't make the requirements in a given month, the only penalty is less interest that month (0.5%).

It's not much, but being paid a little for simply using my checking account isn't bad at all.

http://www.national1st.org/checking/...-checking.html

aznboi2424

iTrader: (10)

yea, i got some money waiting for the rates to come up to invest in some CDs.

The only money i have in the checking is for some reason I need to write checks. I use my CC for everything.

Got my money split between 2 banks, earning 0.8 and 1.1% on savings.

gr8ness97

iTrader: (5)

^ Why not put your money all in 1.1%?

Mr. Maker

iTrader: (4)

money need moar.

bsprinker

The 2.5% that Thunder is earning on his checking account is pretty good compared to what else I've seen. It seems that Credit Unions and other companies like the one I work for are paying the highest rates.

aznboi2424, The product my company offers is a month-to-month cd with NO lock-in period and NO termination charges, unless you want the money wired. You could be earning 3.0% while you wait for the rates to go up. Think about it. pm me for more info.

juniorbean

iTrader: (5)

I was just coming in to post about Credit Unions. Around us they are typically the ones with the best returns...

DarkSithCL

iTrader: (1)

we all are or should BE...

nenachulita

Check out interest rates at other banks. honestly, i give up on outr economy, because they borrow money they'll never put back.

aznboi2424

iTrader: (10)

YGPM

its an internet bank. takes 3 days to transfer back to my local bank and I need a good chunk to stay tangible in case of emergency.

bsprinker

If any of you guys or gals are still interested or would like to discuss your options for investing cash/emergency fund, let me know. One of my buddies just invested $40k and is earning 3.0% on it. And the best part is that it's 100% liquid.....any time he may need it, I can get him part or all of the funds very quickly!

Any questions, just ask.

Brian