best account for interest on cash?

Discussion in 'Fixed Income' started by fusiforme, Mar 27, 2023.

  1. Do EUR CDs exist?

    Apparently not at IB: "IBKR offers only brokered U.S. Certificates of Deposits (CDs) which are listed for trading on a secondary market. Unlike CDs purchased directly from a bank, brokered CDs cannot be redeemed prior to maturity but can be sold prior to maturity, assuming a secondary market exists."

    https://www.interactivebrokers.com/lib/cstools/faq/#/content/28220937
     
    Last edited: Mar 28, 2023
    #11     Mar 28, 2023
    BKR88 and murray t turtle like this.
  2. %%
    SCHW money market has been paying 4.44%+, subject to change. Do have to plan 24 hours in advance, but looking under the hood looks ,much better than a foreign bank.
    Foreign bank sounds like a huge risk. It was not Argentina , maybe Ecuador, people commonly steal postage stamps off letters = a big time mess.
    Uruguay used to be like Switzerland of So America, but things change:caution::caution:
     
    #12     Mar 28, 2023
    BKR88 likes this.
  3. If you want to withdraw at any time, Ally Bank's money market offers 4%.
     
    #13     Mar 28, 2023
    murray t turtle likes this.

  4. I could not locate vmfxx on yahoo finance as a stock ticker...how do you buy this? im with ib.
     
    #14     Mar 28, 2023
  5. ph1l

    ph1l

    It's a money market mutual fund (keeps net asset value at $1.00) that Vanguard uses as a default settlement fund for cash in brokerage accounts. It looks like one can also buy shares in it like other Vanguard mutual funds.
    https://investor.vanguard.com/investment-products/mutual-funds/profile/vmfxx
     
    #15     Mar 28, 2023
  6. m22au

    m22au

    #16     Mar 29, 2023
    nbbo likes this.
  7. %%
    Cool cash/ Cool Trader\ SCHW money market+ most pay 4.44% or better.Really adds up over time maybe not as good as SPY or qqq but every little bit helps...........................................
     
    #17     Mar 31, 2023
  8. I prefer Fidelity's US Treasury's Money Market. For the bigger bucks why not be totally safe and not have to be concerned about having to become a "bank creditor". Still get 4% the last time I checked my yield.
     
    #18     Apr 1, 2023
    murray t turtle likes this.
  9. kmiklas

    kmiklas

    Near-term US Treasury bonds. They’re existentially risk-free, and paying a decent (4.7%) rate right now.

    To get a fill for smaller amounts (less than USD10M) you might have to cross the spread, sweeten the deal, and go a few points deeper into the book. For example, say you’re buying USD100k and the Bid/Ask is 97.824/97.907, and the yield is 4.732/4.689, you’ll have to pay a bit more; and bid, say, 97.911 or so. This will bring your yield down around to 4.681, but otherwise they won’t bother with you; your order will may just sit there unfilled.

    Assuming you’re in the USA, munis are also a nice option, because they’re exempt from local, state, _and_ Federal tax.
     
    Last edited: Apr 2, 2023
    #19     Apr 2, 2023
    leonel likes this.
  10. kmiklas

    kmiklas

    Bruh... been happily suckin' on the nipple of those short-term rates for as long as they last.
     
    #20     Apr 15, 2023