Money market/savings interest rates
 

I have had a sizable money market account with Truist Bank. Without notice, they suddenly dropped my interest rate from 3.05% to .01%. Needless to say, I am looking for another bank. Does anyone know of a local, brick and mortar bank/credit union, that is offering decent rates? Thanks!

Did you have an introductory rate at Truist?

There are at least 3 CU in the Trailwinds Village shopping center on 466a. You should check their websites or call them for current rates.

Forget about banks and credit unions for savings accounts. Open a Vanguard Cash Reserves Federal Money Market account. The current yield is 5.28 percent. Fidelity has a similar fund that yields 4.98 percent. You can even get checks if you want. I never rely on banks for income.

Don’t know about minimums or quick transferability but Capital One 360 Money Market has no minimums, transferability from there to your local account online or visa versa. The current rate is 4.35%.

Did you call you bank manager @ Truist? They have leeway with those Money Market rates...

We use Truist and PNC (don't ask, it's just one of my wife's many mysteries...), and they both recently dropped our rates. She went in, spoke to the managers and financial people, told them she was ready to close the accounts, and "presto!", they rates went back up!

Yep, Fidelity has a fund called: Fidelity Money Market Fund Premium Class - symbol FZDXX.
It continuously pays approx. 20 basis point higher than their standard MM fund. Most recent 7 day yield was 5.14%.

Buy-in is 100K for regular acct and 10K for IRA type acct. They have an office in TV.

I don't believe this is FDIC insured.

You are correct that non-bank money market accounts are not FDIC insured. But, they are extremely safe and the FDIC insurance is not worth the lower yields. My opinion.

That's the trouble with those high-end savings accounts/money market funds, at banks/CU's.
The rates can be lowed at any time with the drop of a hat.

Much safer with laddered term CD's

If you really need FDIC insurance, buy brokered CDs from Vanguard or Fidelity that have FDIC insurance. But, stay away from banks.

Buying Treasury Bills cuts out the middle man, have the best and safest yields above 5.3%, and are sold at a discount, meaning simply that the interest is paid in advance. Banks advertise their CDs at the compound rate. The actual interest rate is lower. There is no need to lock in rates for the long term when short term rates yield more and will for the time being.

I'm not sure why you are married to a brick-and-mortar bank.
There are online banks and credit unions that are offering 5%+.
Most of the online banks are FDIC insured and the credit union's NUCA insured both for $250K just like your local banks.
I have money in an online bank, saving and checking, plus I do have a local brick and mortar bank just in cash I need fast cash.
I don't really find any difference accept it's easier to shift money around with online banking.
But no matter where and how you store your money you do have to keep your eye on what they are paying you for the use of your money.
If you don't like what they are offering move on.

I haven’t used banks for savings for 4 decades now. All brokerages have money market funds. The 1’s I have been in for 2 years pay over 5%, some having $100k minimum and the others a $1M minimum that pays .15% higher. You can get out at anytime. Money market funds are very safe and starting back in 2022, it was the only thing to be in for 18 months, but if you really wanted to make money these last 6-9 months, you needed to be in index funds and stocks.

8% Tax Free Govt Bonds, a History Lesson
 

My Mom until 2003 got 8% tax-free interest for her retirement cash that had to be kept safe. When they matured, there was nothing close to replace them. And then it got worse, in 2008 Prime was dropped close to ZERO. What was an old lady to do? Oh wait, am I living in the past? No I simply have a memory, unlike 90% of people. For the last 15 years prime has stayed close to zero. At Zero, seniors have no good options. And seniors are still paying the price today.

UFB Direct offers online and checking; ATMs at all WAWAs.
Pays 5.25% Money available 24/7.

Your missing something
 

Having worked in the banking industry for over 30yr, No banks can’t and don’t just arbitrarily, lower, or raise your interest rate. One of a few things could’ve happened number one you had an introductory rate that’s time expired number two you withdrew money lowering the balance and not qualifying for the higher interest rate in three there was a term and time limit on the rate you were getting and you missed the renewal or the opportunity expired. Either way, it’s not the banks fault.

Money Markets are not FDIC insured

Consider Charles Schwab. Office in Lake Sumter. Schwab is a bank & brokerage company all blended in one stop. Free banking, free ATM (any atm), no fee stock trading.

Good advice here but I would spread the wealth.

Note that the UFB Direct rate of 5.25 percent is the APY. The actual interest rate is 5.12 percent. The account also has the following disclaimer:

"The Annual Percentage Yield (APY) is accurate as of 04/09/2024. The interest rate and corresponding APY for savings is variable and is set at our discretion. This is a tiered variable rate account. Interest rates may change as often as daily without prior notice. Fees may reduce earnings."

By contrast, the rates advertised for Vanguard and Fidelity money market accounts are current 7-day yields after fees are calculated. Their rates are based on the market conditions for the securities and not at the discretion of Vanguard and Fidelity.

Yeah but how about Federal Money Markets??

You really need to read the prospectus of a money market fund. The Vanguard Cash Reserves Federal Money Market fund is extremely safe because most of the securities are either U.S. Government securities or securities that are collateralized by U.S. Government securities. They are also very short term securities, which increases the overall safety of the fund. So, most of the assets are backed by the U.S. Government.

But, this is not the same as FDIC insurance, which is used to insure bank securities. But, you can buy FDIC insured bank CDs from Vanguard or Fidelity. They are called brokered CDs. Some are new issues and some are after market issues.

Bank
 

Marcus by Goldman Sachs

5.05,% APY Platinum Savings Account CIT Bank (FDIC insured $250k single, $500k couples). All banking is on line. I use local bank for checking, but most local bank savings account rates are laughable.

Easy to on Treasury Direct

AGREE. Had this account for over a year!!!

Same boat
 

[QUOTE=Ellen2;2319852]I have had a sizable money market account with Truist Bank. Without notice, they suddenly dropped my interest rate from 3.05% to .01%. Needless to say, I am looking for another bank. Does anyone know of a local, brick and mortar bank/credit union, that is offering decent rate
I was in the same situation. I called and they told me what would happen if I did nothing. But they could renew me in another account at good rate.
My point being if they want to keep their customers they should automatically renew to their best rate.

American Express Bank currently paying 4.30%. Easy open, easy transfers. FDIC insured. I think online can pay more as they have less overhead.

Fidelity Pays 5.15%
 

5.15% Fidelity is and has been for some time paying over 5% on their money market fund. Believe it’s FDZXX but check it out by calling them. I think there is a minimum but you said “sizable”. Why anyone would deal with a brick and mortar bank today?? They do have local offices if you want face to face plus bill pay etc.

I think you mean FZDXX.

very true that many banks drop from their CD's short or long term 5% to .01% when it expires and they never let you know that they drop as well as don t warn that the CD is going to expire soon... unless you have to keep eyes on your CDs contract's expiration date. Sadly, we have to invest online with better interest rates and easy to keep eyes on. We have a small sum of money to keep in our local bank for emergency cash, etc. Some of our financial investment firms do the same until we remind them to update our contracts. Maybe try to take an advantage of senior citizens?

Raisin.com
 

Look into Raisin.com

Raisin is a online site for finding high-yield accounts. It partners with banks and credit unions to offer special interest rates when opening an account through Raisin rather than directly on the bank's websites.
Raisin is owned by Raisin GmbH, which is headquartered in Berlin, Germany, and was founded in 2012.

Representatives will be at the Brownwood Blueberry Festival on April 19th.
https://www.raisin.com/en-us/refer-a-friend

[QUOTE=RetiredCPA;2319988]I agree that, if banks want to keep customers, they should renew at the best rate. But, unfortunately, I don't believe that banks care about keeping savings customers anymore. That is why I only use a bank for a checking account and credit card. I use investment companies to earn interest.

Money Market Accounts
 

Don’t leave a lot of money in the Banks… either get a short term CD or move the money to a Brokerage account like Fidelity or others. They all pay close to 5% and you can even pay bills from them, easily move money to linked accounts and get a debit card!

%
 

Get JEPQ has a dividend yield of 8.99% and the dividend is paid every month

Have held this stock, (PSEC), for nearly 20-yrs, share price varies but only matters when you sell but in the meantime your money is earning 15% +/- . Great place to park money you’ll never need.

Check out PSEC, another BDC with nearly twice the dividend and has never missed a payment in the almost 20-yrs I’ve held it.

I have been using an American Express savings account for the last year. Currently paying me 4.5% with only $1000.00 minimum. Log in with your AMEX credit card and Tied into your local bank for quick transfers when you need money.

I’ve been investing in US Treasuries at much higher rates. A 4-week or 8-week Treasury Bill is paying around 5.3%. Go to treasurydirect.gov and open an account.

presto!! :)