Where to put short term cash
 

I recently realized that Citizens is paying 0.5% on their senior checking account. That is substantially more than the 0.1% that Fidelity is paying on their Money Market funds. Plus you get FDIC insurance at Citizens. Since it is easy to move money between accounts, I keep most of my cash that is waiting for other investment opportunities at Citizens.

Also, I found out that Fidelity has a short term CD option for cash, rather than their Money Market fund. Given that yields are so small, you might as well get the security of FDIC insurance. I recently looked at where Fidelity is investing its Money Market fund and is was over 60% foreign entities. Why take that risk for such a tiny yield.

I’ve used ING Direct for many years now for my short term cash savings. Once you set it up, you can move money between your local checking account and your ING account right from your computer and they consistently pay one of the highest rates for savings accounts (currently 1.1%) and FDIC insured.

Agree about the money market rate. We use USAA Short Term Bond, and you can write checks off, so it is great for emergency fund.

Army Guy

short term interest
 

American Express has an online savings FDIC insured.
1.3% you can transfer money to and from your other checking or savings accounts
Need to wait 3 days for it to clear.

http://personalsavings.americanexpre...rsonal_savings

They currently have a 2.0% CD

Everbank (https://www.everbank.com/) has a teaser rate for 3 months on its checking account for 2.25%. After 3 months it reverts to 1.46%. The only catch is that you can only put $50,000 at the teaser rate. If you want to put more there then husband and wife can each open an account with $50,000.

Citizens First Bank Money Market fund is paying 1.2 (was 1.6) and you can transfer the funds from the MMF to checking and back.

It was higher until Benenke(sp) opened his mouth.

Has anyone checked out the 5.6% rate for a 3-month CD offered by "Integrifirst USA"?

They've been running an ad in the Daily Sun. Their phone is 352-205-8017.

From MarketWatch.
"Deceptive financial advertisements, and bait and switch tactics, existed well before the Wall Street collapse and still do. I wouldn’t wait for regulators to start protecting the consumer, as this may not happen in our lifetimes. It’s up to us to practice a little financial self-defense. Always be skeptical of any financial product, as well as the tactics that people use to sell them."
http://moneywatch.bnet.com/investing...o-be-true/987/

Good info, Kayaker.

I have seen those ads, too. And I thought, "Yeah, right. What's the catch?"

When it comes to talking about turning over money, I always have to say......

"Hey, let's be careful out there."

Hill Street Boomer

.

LOL!

Loved that show.

(but where to put cash taken out of the market?)

.

I don't know about all you folks, but I thought ALL cash was short term.

Options for short term cash
 

In addition to looking for the best current CD and savings rates, consider buying U S savings bonds. The I bonds can never go down in value, have some inflation protection, and can be redeemed any time after one year. For money that you might need in a few years, consider a bond fund such as Vanguard Total Market Index. It will have some ups and downs, but nothing like the stock market. By the way, now is not the time to be taking money out of the stock market. Remember, even if your account balance is down, you haven't lost money unless you sell.

K9lovers you are right on the 5.62% rate, its at Interifirst USA, its only for 3 months, and its legit.

Here is how these HIGH CD's work. First of all what are trying to do is lure you into their establishment to sell you a long term Annuity. However some places, if you tell them right up front, that you donot want the annuity will simply process the CD for you.

How the CD Works is you give them say $!0000 (There always is a Max amount you can give them) ..and say they advertise a 3 month CD rate at 5% . What they a do is they buy the CD from a FDIC bank (make sure it is an FDIC insured bank) say at 1.5% that would normall provide $150/year in interest or $37.50 for the 3 months. At 5% your $!0000 should produce $500/year or $125/quarter. SO just like a timeshare presentation where you receive an incentive for comming in to listen, , INTEGRIFIRST USA in esence pays you approx $87.50 to hear about annuities and you see this when they forward your money to the bank that is issuing the CD, they forward your $10000 PLUS the $87.50....so at the end of the 3 months you will receive approximately $10125 the equivalent of 5% on your money...but this really represents the $87.50 incentive plus the $37.50 true rate of return on your CD.

They are normally legit but a hassle for a 3 month return!

784Caroline: thanks for explaining this for us. At my age, time is precious, so don't know that I want to spend it listening to someone trying to sell me something.

So take your 3 months money and run not a bad return on 10K for 3 months.

Discover Bank is at 1.35% for savings.
http://fb.discoverbank.com/

check out
 

AllstateBank.com

Was just there today and MM acc'ts are paying .85 on acc'ts up to 100k.

Yep - and Benenke(sp) opened his mouth again. They could care less about our savings and retirement funds.

Yipes, .85! Soon we'll be paying Citizens to tend our money. It looks like it is time to move money out of Citizens MM. I've been using it cuz it is easy while I'm seasonally away.

Are the "online" companies really safe? (Ing, Ally, Everbank, etc.) I gather that they all covered by FDIC. But is one "safer" than another?

I know I'm old fashioned, but dealing with tellers and real buildings just seems safer.

Hi Barefoot,

I know exactly what you mean. I have to see the bricks and mortar.

It took me a long time to start using online trading. But finally, in the spring of 2009, I got over that and opened an online account. Of course, the account I opened is at an online brokerage with local offices where I can walk in and hand them my money to deposit. Bricks and mortar for me to see and touch. In fact, I am thinking about switching for trading. I might be able to get myself to do that. Some of those companies have been around forever.

But no banks with cyberspace offices only can get into my life. I have to know where my bank is.

So anyway -- me, too.

Drive-thru Boomersaurus

We've been using ING Direct (www.ingdirect.com) since 2004 for savings and checking. We are very pleased with their interest rates on both types of accounts. When we "write" checks, they will mail them at no charge when they can't perform an electronic transfer. Easy peasy, as barefoot would say :)

The July issue of Consumer Reports Money Adviser has an article titled "Is High Interest Checking for You?" The article explains different kinds of requirements that must be met.

I hesitated posting this because there is no way that I can link it for you. Consumer Reports Money Adviser is a 16-page publication that is by subscription. I use it and also my other 16-pager Kiplinger's Retirement Report as kind of like a Readers' Digest version of what's going on with money stuff. Both publications help me keep up with basic information that might be good to know. Nothing esoteric about either publication. Simple stuff -- my style.

In the July Consumer Reports Money Adviser there is also a good little article that could serve as a basic intro to dividend investing. Solid dividend-payers, if correctly chosen, can help to create a little buffer zone sometimes. Makes the roller coaster ride a little easier on the stomach -- maybe......

Well, I guess this post is not really much help because links are not available, but if any of this interests you, your friendly local librarian might be able to help you find a copy of the July issue. If locating just the article -- the "high interest checking" one is on pgs. 6 and 7 and the dividend article is on pages 8 and 9.

Boomer (geez -- I am starting to sound like that old "Readers' Guide to Periodicals" -- the one with the red cover that was the index for magazines and journals and stuff.)

I use Capital One's money market online. It has consistently paid one of the highest rates for several years now. It's easy, accessible online, and FDIC insured. If you are a Costco member, they also offer a short-term higher rate.

Besides online, you can also get paper checks to write.

I transfer money online among Capital One and two checking accounts. Works for me. I love it.

New Financial Reform Bill about to be signed by President
 

Why all the concern? Wont the new 2000 plus page Financial Reform law protect all of us? Guess we have to wait till it becomes law of the land before we find out.

These high interest checking accounts can be found at the website for checkingfinder. Some pay up to 3.5%, but they require 10-15 debit card purchases per month and some also require electronic statements, online bill paying and/or automatic deposits. This is too much hassle for me, but if you use your debit card for everything you might be interested. I wonder, though, if the rates might eventually go down as a result of tighter regulations on debit card fees.

There is a bank near my house in NC taht is currently paying 4.51%, you have to use their debit card for 10 transactions a month and you have to have at least 1 automatic payment go out of your account monthly. They pay this rate for up to 25K.

http://www.crescentstatebank.com/