|So what are the better options?
I love finding little things that can make a big difference. Here’s an example.
If you don't need the money right away, you can buy a 6 month or 12 month US Treasury Bill that pays over 5% interest. That means if you have $100,000 in a savings account at Chase, you would earn just $10 in one year compared to $5,000 in a US Treasury Bill!
If you need to access your cash, a money market fund is also a better alternative than a bank. Fidelity and Vanguard money market funds are currently paying over 4.2%. If your account is at Fidelity or Vanguard, you may need to change your core position for uninvested cash to a higher yielding money market fund. Switching costs you nothing and does not affect how you currently use your account.
With the ease of transferring money electronically between financial institutions, don't allow any bank to short change you on interest.
It pays to take the steps to transfer your funds to higher paying, safe instruments that earn 4-5%.
We have done this for our clients. If you need help finding higher interest rates for your cash deposits, please reach out. We are happy to help.
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