Author Topic: Cash Parking  (Read 19229 times)

nonattender

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Cash Parking
« on: December 11, 2016, 06:40:30 PM »
Did not see many good high yield savings / CD / etc offers over the holiday, this year.  Did anyone find anything that I missed?  Looking for somewhere to stash cash (FDIC/NCUA - maybe, maybe a MMA), with upper limit of at least 50-250k (no "rewards checking account" type stuff, where I've got to get a debit card and remember to use it ~10-15 times per month, unless it's got a really high balance limit - none of this "3% on up to $20k" stuff - and, hopefully, w/an APY somewhere north of ~2.00%, just to keep up.

Best offer I saw was Andrews FCU doing a 3-month CD at 3.00% APY... but that's a lot of time on the phone/setup (w/a hard cred pull), for such a short duration.

Anyone got anything good to share?
« Last Edit: December 11, 2016, 06:43:07 PM by nonattender »
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SLCPaladin

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Re: Cash Parking
« Reply #1 on: December 11, 2016, 10:46:08 PM »
I didn't see any. I sprung for some Pen Fed CDs and loaded up a few years ago when they were offering 3.1%. I routinely check depositaccounts.com, but haven't seen anything for several years that piqued my curiosity. I imagine if and when the next Fed rate hike kicks in that things might get interesting.

You might appreciate this. Back in the day I had several "reward" checking accounts that had high interest rates but which had enough stipulations attached that the banks and credit unions probably avoided paying the interest rate to its depositors on many, if not most, occasions. But I had a system. To meet the minimum 12-15 debit card transaction, I would actually go to Walmart self check-out once a month (real early) and get a jalapeno (cost = less than $.01) from the produce and place 12 transactions, just to meet my monthly quota. I always politely explained to the cashier monitoring the self check-out machines exactly what I was doing so they didn't get suspicious. It seems like a lot of work, and it was, but the interest rate was not insignificant. And it was nice having pure liquidity. It got old eventually and I found better opportunities, but it worked at the time.
« Last Edit: December 11, 2016, 10:57:24 PM by SLCPaladin »

fliphusker

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Re: Cash Parking
« Reply #2 on: December 11, 2016, 11:01:26 PM »
I hop on a few checking accounts a year that I have to drop $1500 into for $200.  Not shy about it, I like my free money. 

nonattender

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Re: Cash Parking
« Reply #3 on: December 11, 2016, 11:10:16 PM »
You might appreciate this.

Yes!  No shame in winning the game.
A little nonsense now and then is relished by the wisest men.

Debt Free

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Re: Cash Parking
« Reply #4 on: December 12, 2016, 01:11:18 AM »
While unpacking Christmas ornaments a couple weeks ago, came across a newspaper page (used to wrap the ornaments) from 2007.  Quarter page ad for some, now defunct, local bank advertising 5.5% rate on 12-18 month CD's.

Talked with my wife about it.  I'm sure at the time the thought was 5.5% was "Ho-hum" with no thought that things could get worse, especially to the point of 0.01%.  Oh to have had a crystal ball back then.

jheizer

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Re: Cash Parking
« Reply #5 on: December 12, 2016, 09:18:29 AM »
I really miss the ing direct and etrade online savings accounts at 5-6%.  Too bad I was fresh out of college and had no money back then.
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anabio

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Re: Cash Parking
« Reply #6 on: December 12, 2016, 10:42:42 AM »
Back in 1981 I had a one year CD from Liberty Savings and Loan (not around now). It paid 11%...Of course this was during the "hyperinflation" days --well, not exactly on the Venezuelan scale-- and my house mortgage was at 12% (VA and if I remember correctly it was around 2% lower than the going rate at the time).

Really pissed me off...here all the unions were getting 10%+ yearly pay raises and the President decided that someone had to bit the bullet and military raises were almost non-existent.
As Will Rogers stated: : I'm not as concerned about the return on my money as I am the return of my money

Debt Free

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Re: Cash Parking
« Reply #7 on: December 12, 2016, 02:10:19 PM »
Yes.  I'm a navy brat.  I remember my parents having about a 16-18% mortgage when we were kids.  I also remember my father talk about how some of his "superiors" questioning the fact that he owned a home on his salary rather than base housing.  All comes down to money management, he'd laugh.

yojoakak

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Re: Cash Parking
« Reply #8 on: December 12, 2016, 02:34:20 PM »
local bank advertising 5.5% rate on 12-18 month CD's.

Good times, good times.


anabio

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Re: Cash Parking
« Reply #9 on: December 12, 2016, 04:54:36 PM »

Good times, good times.

Yes they were (especially for retired people on fixed income)...but then things kind of balance out. A few years ago I refinanced my latest mortgage at 3.25%. Historically that's unheard of. And that rate is for the "duration"; That rate will never be hear of again and I doubt I will ever be filling out refinance papers again.
As Will Rogers stated: : I'm not as concerned about the return on my money as I am the return of my money

wiseclerk_com

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Re: Cash Parking
« Reply #10 on: December 15, 2016, 08:21:44 AM »


Yes they were (especially for retired people on fixed income)...but then things kind of balance out. A few years ago I refinanced my latest mortgage at 3.25%. ... That rate will never be hear of again

Never say never. Currently rates for 10 year mortgages here in Germany are around 1.25%. Yes completly different national market, but when I financed my home long ago today's rate would have been deemed pure fantasy.
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nonattender

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Re: Cash Parking
« Reply #11 on: January 27, 2017, 09:38:50 AM »
3.00% APY 84-month CD from the CU where Air Force One lives... very curious:

https://www.depositaccounts.com/banks/andrews-federal-credit-union/offers/

The early withdrawal penalty is 180 days worth of interest, if you cash it out...
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Rob L

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Re: Cash Parking
« Reply #12 on: January 27, 2017, 11:45:21 AM »
3.00% APY 84-month CD from the CU where Air Force One lives... very curious:

https://www.depositaccounts.com/banks/andrews-federal-credit-union/offers/

The early withdrawal penalty is 180 days worth of interest, if you cash it out...

Thanks for the post. Very seriously considering parking some Traditional IRA money here.
Even if you cash out the CD after only one year the return with penalty is 1.5%. Virtually a no lose situation for parking cash.

Found one additional item to consider from the comments to the depostaccounts.com link above:

"Be aware that their system will force you to decide ON OPENING whether you want ALL interest (for the entire 7 years) to be added to the principal and compounded, OR to be sent to you. It's either/or that you have to decide upon opening, and cannot be changed once the CD has been opened."

That's fine with me, but I could see where this could be important to others.

nonattender

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Re: Cash Parking
« Reply #13 on: January 27, 2017, 12:11:44 PM »
Here's the 1.50% APY fully liquid checking acct the depositaccounts.com guy found earlier this week:

https://www.depositaccounts.com/banks/memorybank/offers/

Only catch that I saw was 5 debit uses per month, but no cap.
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fliphusker

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Re: Cash Parking
« Reply #14 on: January 27, 2017, 01:15:38 PM »
Here's the 1.50% APY fully liquid checking acct the depositaccounts.com guy found earlier this week:

https://www.depositaccounts.com/banks/memorybank/offers/

Only catch that I saw was 5 debit uses per month, but no cap.

IMO money would be better spent dropping it into a checking account that gives you a signup bonus.  Some have big restrictions, others do not. 
https://www.nerdwallet.com/blog/banking/best-bank-bonuses-promotions/