Lend Academy Network Forum

General Category => Off Topic => Topic started by: nonattender on December 11, 2016, 06:40:30 PM

Title: Cash Parking
Post by: nonattender 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?
Title: Re: Cash Parking
Post by: SLCPaladin 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.
Title: Re: Cash Parking
Post by: fliphusker 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. 
Title: Re: Cash Parking
Post by: nonattender on December 11, 2016, 11:10:16 PM
You might appreciate this.

Yes!  No shame in winning the game.
Title: Re: Cash Parking
Post by: Debt Free 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.
Title: Re: Cash Parking
Post by: jheizer 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.
Title: Re: Cash Parking
Post by: anabio 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.
Title: Re: Cash Parking
Post by: Debt Free 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.
Title: Re: Cash Parking
Post by: yojoakak on December 12, 2016, 02:34:20 PM
local bank advertising 5.5% rate on 12-18 month CD's.

Good times, good times.

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fwww.pfstuff.com%2Fsavings%2Frates.png&hash=99d562251ac2878fc770777282e1d20d)
Title: Re: Cash Parking
Post by: anabio 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.
Title: Re: Cash Parking
Post by: wiseclerk_com 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.
Title: Re: Cash Parking
Post by: nonattender 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...
Title: Re: Cash Parking
Post by: Rob L 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.
Title: Re: Cash Parking
Post by: nonattender 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.
Title: Re: Cash Parking
Post by: fliphusker 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/
Title: Re: Cash Parking
Post by: Rob L on January 27, 2017, 01:20:04 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.

There's another catch:

"MemoryBank currently does not have a procedure for designating beneficiaries to an account (i.e. establishing POD accounts)."
Title: Re: Cash Parking
Post by: nonattender on January 27, 2017, 04:07:51 PM
Now, I'm not 100% on how this "payable on death" thing works, but, unless I call them after I die to tell 'em, I suspect they won't know. ;)
Title: Re: Cash Parking
Post by: Rob L on January 27, 2017, 06:42:56 PM
Now, I'm not 100% on how this "payable on death" thing works, but, unless I call them after I die to tell 'em, I suspect they won't know. ;)

I'd never seen any type of an "account" where the owner(s) could not name a beneficiary. Google'd a question I'd never considered. Which takes precedence; your will or named beneficiaries? All the answers I saw pointed to named beneficiaries taking precedence over your will (life insurance proceeds too). Guess the big deal is that payable on death "accounts" avoid probate. Probate courts take a cut of what one would prefer to go to one's heirs (and they are a big hassle for the undead).

BTW my wife and I did apply for accounts at Andrews FCU today. We each promptly got a hard pull via TransUnion (Credit Karma sent emails informing which was kinda neat). Andrews FCU says it takes a couple of days for applications to be processed. Plan to move 1% APR cash parked at Ally Bank to 3% Andrews CD's. For the record I had parked other cash in the VCSH fund (around 2.25% yield) until it was obvious the Fed would move and VCSH would take a hit. Luckily I was light on equities and put some cash taken from VCSH into stocks. Always better to be lucky than good. Meanwhile, I hope you're not expecting a finder's fee :)

Competition is heating up for your LC investment dollars. Expect more to come.
Title: Re: Cash Parking
Post by: nonattender on January 28, 2017, 07:28:00 AM
Now, I'm not 100% on how this "payable on death" thing works, but, unless I call them after I die to tell 'em, I suspect they won't know. ;)

Always better to be lucky than good. Meanwhile, I hope you're not expecting a finder's fee :)

Competition is heating up for your LC investment dollars. Expect more to come.

Half the expected return with 0% of the risk/work is compelling for some people.  One thing I did notice is that the depositaccounts site has an early withdrawal penalty calculator, which is kinda cool, but it assumes that one isn't reinvesting dividends/interest, so, it's 'low' - but that's another one of those "how many angels on the head of a pin" theological/accounting-methodology convos, which I find fun and interesting, but which haven't really turned out to be profitably insightful wrt marketplace lending, at least in the last couple years - all of the really interesting arb opportunities seem kinda tapped out and even LC's saying "expect about 6%, regardless of selectivity".

This is probably good for them / the industry - but it sucks lotsa fun right out of it for the clever and lazy who like to micromanage stuff.

"Our baby's growing up."  (Maybe.)
Title: Re: Cash Parking
Post by: rawraw on January 29, 2017, 09:08:23 AM
IIRC, I think payable on death also increases your FDIC insurance
Title: Re: Cash Parking
Post by: Rob L on January 29, 2017, 06:22:49 PM
Had to ask myself some questions about the Andrews FCU CD.

Assuming early withdrawal (it's 7 years after all), at what new interest rate would I break even at the non-early withdrawal end date?

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fi.imgur.com%2FSJitVZg.png&hash=e5fb6bfc2ff38fd943e31bcddbd6493b)

And what would be my compounded APR at early withdrawal (this one was quite interesting)?

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fi.imgur.com%2F6a8qeaF.png&hash=f2f6fb3119cbaac778da49b9c4aa1908)

And finally what would my penalty be as a percent of interest earned at early withdrawal?

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fi.imgur.com%2F4Wp0bO5.png&hash=9cb739aa9b0f0d24d802afde0d14ebc1)

Now I'm gonna go watch a movie or something ...  ::)
Title: Re: Cash Parking
Post by: nonattender on January 30, 2017, 02:09:01 AM
Yup - that's one reasion I keep coming back here... the quant-ephemera are high quality. :)

BTW, logged into Amex to pull down yearly summaries and got followed around their site by a little popup for something they're calling "NextStep" which desperately wanted to lend me up to a very large amount at a rate of 8.98% or lower.  I think I mentioned in a FICO thread somewhere that I was going to let myself look like a "normal consumer" (non-christmas-curmudgeon) in January - they've got a fresh (soft) credit pull on me showing piles of charges from December, now, and they're just dying to pay off my other cards for me, via personal loan, and are even willing to directly disburse some or all of the loan proceeds straight to any of my non-amex credit accounts.

Guess they got tired of being on the receiving end of that transaction and whipped something up for retention/competition purposes. ;)

My junkmail's getting interesting, too...  Discover is back (with shiny and never before seen metallic-hydrogen envelope colors, from the in-house stationery-store/materials-science-lab/marketing-research-firm that they run).  Nothing from any of the non-bank outfits - yet.
Title: Re: Cash Parking
Post by: rawraw on January 30, 2017, 04:30:32 PM
Had to ask myself some questions about the Andrews FCU CD.

Assuming early withdrawal (it's 7 years after all), at what new interest rate would I break even at the non-early withdrawal end date?

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fi.imgur.com%2FSJitVZg.png&hash=e5fb6bfc2ff38fd943e31bcddbd6493b)

And what would be my compounded APR at early withdrawal (this one was quite interesting)?

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fi.imgur.com%2F6a8qeaF.png&hash=f2f6fb3119cbaac778da49b9c4aa1908)

And finally what would my penalty be as a percent of interest earned at early withdrawal?

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fi.imgur.com%2F4Wp0bO5.png&hash=9cb739aa9b0f0d24d802afde0d14ebc1)

Now I'm gonna go watch a movie or something ...  ::)
Ha I used to do this same analysis for bank CDs.  It is funny, because plenty of banks have not thought through these penalties.  As a result, they will have penalties that used to be meaningful but aren't anymore given the low rate.  Who cares about a penalty of one month interest when rates are 20bps?
Title: Re: Cash Parking
Post by: Rob L on January 30, 2017, 06:50:23 PM
Ha I used to do this same analysis for bank CDs.  It is funny, because plenty of banks have not thought through these penalties.  As a result, they will have penalties that used to be meaningful but aren't anymore given the low rate.  Who cares about a penalty of one month interest when rates are 20bps?

Yeah, it's hard to see this as anything but a no lose situation (given the objective of a risk free rate of return). Upon re-reading that sentence it sounds really dumb; as in no such thing. However, if rates go up surprisingly quickly and I trade up for a minimal fee. Recession comes, rates slip back, and I'm locked in way above inflation. Hopefully, rates will go up a percent or more over the next three years, I'll trade up, and Andrews FCU will have done pretty well for themselves too. They are certainly way above the curve here.

Maybe I should I should add some context. My first bank account was a passbook savings account where I put the money from my paper route. It paid 4%. Then inflation and even stagflation were the problems throughout my young adult life and interest rates went to the moon (and we did too). My Mom locked in her retirement CD's at 12% for like 10 years at the peak in '82. To think I'd be fawning over a 3% sure thing feels simply ridiculous. But looking at the big picture and it would be a huge reversal of trends for the 10 year Treasury to see 4% again any time soon. Guess this is really a good deal (until it isn't). If it isn't I'll trade up. There isn't enough penalty here to get hurt badly.
Title: Re: Cash Parking
Post by: jheizer on January 30, 2017, 07:28:07 PM
Geez. Why is their rate so high?  It seems like they could offer a rate way lower and still be attracting people like crazy.  If we were a few years in the future I'd probably be all over this but at my age I'm still limiting fixed income investments.
Title: Re: Cash Parking
Post by: Rob L on January 30, 2017, 09:38:30 PM
If we were a few years in the future I'd probably be all over this but at my age I'm still limiting fixed income investments.

Don't know your age, but presuming it's under 60 that's very, very smart.
Title: Re: Cash Parking
Post by: jheizer on January 31, 2017, 10:10:10 AM
Don't know your age, but presuming it's under 60 that's very, very smart.

33.  P2P is my only "fixed income" right now.
Title: Re: Cash Parking
Post by: Rob L on January 31, 2017, 06:50:23 PM
Geez. Why is their rate so high?  It seems like they could offer a rate way lower and still be attracting people like crazy.

Well, I seem to be the only fish on the hook here on this forum so go figure. I'll admit to my human frailty and admit 3% APR seems way more than 2.99%. That "3" handle sets the hook. I can't help but think that anything less and I might have waited as interest rates "certainly appear" to be on the way up. A higher penalty may have put me off too.
Title: Re: Cash Parking
Post by: nonattender on January 31, 2017, 07:18:22 PM
Geez. Why is their rate so high?  It seems like they could offer a rate way lower and still be attracting people like crazy.

Well, I seem to be the only fish on the hook here on this forum so go figure. I'll admit to my human frailty and admit 3% APR seems way more than 2.99%. That "3" handle sets the hook. I can't help but think that anything less and I might have waited as interest rates "certainly appear" to be on the way up. A higher penalty may have put me off too.

I don't advertise my moves (or talk my own book)...  maybe I should start.   Anyway, the highest tier CD's are all coming up to ~2.50% APY on the 5 year products, so, 3% on a 7 year is not too "crazy"...  It's actually pretty smart of them to lead, now, rather than later...

I'm still considering AFCU, but I did do the 1.5% liquid checking and already got the welcome kit/card and am now filling it up via ACH - that'll replace a 1.11% apy acct that I had somewhere else, so, I'll make a little under a grand a year for doing a pretty easy switch...

On talking my own book, I bought these two super-exciting penny stocks today:   IXP and XLV

I am truly living on the edge.  I put about half-a-shot of Bailey's into two coffees earlier, today, too.  (REG FD:  I own shares in Diageo.)
Title: Re: Cash Parking
Post by: Rob L on February 01, 2017, 06:57:15 PM
I don't advertise my moves (or talk my own book)...  maybe I should start.
On talking my own book, I bought these two super-exciting penny stocks today:   IXP and XLV
 
You know you aren't gonna start doing that. Personally, I consider that a very rigid rule, but more for stocks and not so much something so docile as parking cash somewhere (or clearly not my LC/MPL opinions as I blather on about them ad nauseum). No emotional attachment to consider.

I had trouble finding your penny stocks on the pink sheets. Uranium, gold or oil?  ;D

Anyway, the highest tier CD's are all coming up to ~2.50% APY on the 5 year products, so, 3% on a 7 year is not too "crazy"...  It's actually pretty smart of them to lead, now, rather than later...

You put it better than I did, but that's just it. I think they are making a smart bet here too, getting ahead of the curve.

I'm still considering AFCU, but I did do the 1.5% liquid checking and already got the welcome kit/card and am now filling it up via ACH - that'll replace a 1.11% apy acct that I had somewhere else, so, I'll make a little under a grand a year for doing a pretty easy switch...

I mailed in the papers for an IRA account and money xfer today.
If anyone is seriously considering this I'll be glad to post the process I've been through.

I am truly living on the edge.  I put about half-a-shot of Bailey's into two coffees earlier, today, too.  (REG FD:  I own shares in Diageo.)

Hey, me too. I have a very very small position in Diageo. Maybe we could keep them afloat simply with our retail purchases.
Title: Re: Cash Parking
Post by: nonattender on February 01, 2017, 11:29:31 PM
I think one of the LendAcademy writers may have developed problems from which Diageo holders may already be making a profit (or will soon) based upon today's pump post.

I didn't buy any of that, but I did take a flyer and buy 100 shares of an IPO for INVH, which is some sort of REIT that does single-family - the premise being that they bought up a shitload of cheap houses during the crash, and now want to rent them to millennials who invested in RENN and, so, won't be able to buy a house for the next 20 years or so.  Or at least that's what I read.  I don't know, maybe not - I was all hopped up on caffeine and half-a-shot. ;)  Probably it's something to do with mortgages actually requiring downpayments and rising interest rates and housing prices going up - but it's funnier with Bailey's adding the color.  If it were a tech company, it'd be "uber, but, you know, like, for houses".  (REG FD:  I now own INVH - whatever the hell that is - and I still own DEO - and I am careful to make sure DEO's stills don't own me - and so is RobL, I hope, though I now fear he may really be an Excel-functional-alcoholic.)

"I'm fine, honey - I swear - see, look, my pivot tables align - I can stop anytime...  I just need... one more chart!"
Title: Re: Cash Parking
Post by: nonattender on February 02, 2017, 05:47:13 PM
Today's talking-my-own-book update:

I just reverse-mortgaged my house to Magnum P.I. (whose sly Fox News commercials have allayed my fears about naughty banks trying to steal my home, when, actually, they just want me to be able to enjoy myself, now, with no consequence or thoughts of the future).  I then took that money and signed up to put it all into Snapchat's IPO, which, as far as I can tell, is a program that will display whatever one puts into it, for a very short time, and then - *poof* - it's gone.  I heard the first SEC filing had an 'irony disclosure' but that it later disappeared.
Title: Re: Cash Parking
Post by: Rob L on February 02, 2017, 07:56:32 PM
Today's talking-my-own-book update:

I just reverse-mortgaged my house to Magnum P.I. (whose sly Fox News commercials have allayed my fears about naughty banks trying to steal my home, when, actually, they just want me to be able to enjoy myself, now, with no consequence or thoughts of the future).  I then took that money and signed up to put it all into Snapchat's IPO, which, as far as I can tell, is a program that will display whatever one puts into it, for a very short time, and then - *poof* - it's gone.  I heard the first SEC filing had an 'irony disclosure' but that it later disappeared.

Propping up the DEO revenues are we?
You do know that competitors FaceChat and SnapBook have massive VC backing and pose a very serious threat.
Snapchat itself could disappear overnight!

FWIW, I looked into Magnum's offer but was told I'd have to make monthly payments to reverse mortgage my house. Couldn't afford that.
Decided to continue to invest in LC instead.
Title: Re: Cash Parking
Post by: nonattender on February 03, 2017, 12:12:15 AM
Decided to continue to invest in LC instead.

Booooooooooorrrrrrrrring.

I'm investing in a new, mobile, 5G, P2P, crowd-funded, flashmobbed, self-driving, marketplaced AI which utilitizes machine learning and blockchain to train itself via neural networking on a cloud-based, open-sourced, big data, micropayment-enabled platform to pitch VC's ridiculous ideas and completely disrupt "entrepreneurship" by leveraging proprietary management heuristics to create a penultimate...

RoboCEO.

He keeps wanting to fire anyone that's human, but I figure we'll take care of that in 2.0 - for now, it's all about the passion and vision!

If that doesn't work out, I figure I can always sell him to IBM to beep and whir and do high-level management consulting for rich guys:

Bizzizzip.  Burrurrrrp.  Beep! - "Recommend not building giant tunnel network in active earthquake fault zone. That will be $1,000,000."
Title: Re: Cash Parking
Post by: nonattender on March 05, 2017, 07:38:56 PM
I just reverse-mortgaged my house to Magnum P.I. (whose sly Fox News commercials have allayed my fears about naughty banks trying to steal my home, when, actually, they just want me to be able to enjoy myself, now, with no consequence or thoughts of the future).  I then took that money and signed up to put it all into Snapchat's IPO, which, as far as I can tell, is a program that will display whatever one puts into it, for a very short time, and then - *poof* - it's gone.  I heard the first SEC filing had an 'irony disclosure' but that it later disappeared.

Woohoo - I'm rich!
Title: Re: Cash Parking
Post by: Rob L on March 15, 2017, 02:12:28 PM
I noticed today that the APR for Andrews FCU 84-month shares certificates has been lowered from 3.0% to 2.2%.
Meanwhile they have dragged their feet so long I have STILL not yet been issued the certificates for which I applied (they have had my money for almost a month).
Got a very bad feeling about this. They've taken insanely long to get anything done and customer support is almost non-existent.
Title: Re: Cash Parking
Post by: Debt Free on March 15, 2017, 02:38:14 PM
Go Navy!!!
NFCU
Special EasyStartSM Certificate (Share/IRA/ESA)   $50 min $3,000 max   12 months   3.00%
Title: Re: Cash Parking
Post by: Rob L on March 15, 2017, 03:23:27 PM
Go Navy!!!
NFCU
Special EasyStartSM Certificate (Share/IRA/ESA)   $50 min $3,000 max   12 months   3.00%

I'm trying to squirrel away more quite a bit more than the max on that one.
Any other ideas would be much welcomed.
Title: Re: Cash Parking
Post by: Rob L on March 15, 2017, 06:39:23 PM
My apprehension was misplaced. Things worked out well, but it wasn't a smooth process.
Late this afternoon I received a message from the Andrews website. The message said:

"Per your application comment, you are attempting to establish IRA Certificates and not the fixed rate certificates you have elected on your application. Due to us being unable to finalize your request, this application will be canceled."

Uh Oh.. There was a phone number to call. I did at 5:30 pm (they close at 7 pm) and I (surprisingly) actually reached a person. Ultimately she was able to resolve everything; issuing desired IRA certificates for my wife and me (yes at 3%) and even made them effective in mid February when they had received our money. Thought this was pretty amazing actually. Life is full of surprises.

Title: Re: Cash Parking
Post by: jheizer on March 30, 2017, 09:36:53 PM
Anyone have an account here https://www.purepoint.com/online-banking/savings-account/high-yield  ?

Edit:  Looks like they are extremely new for this company/brand.  Now sure what I think about that.  But those rates :)  https://www.bloomberg.com/news/articles/2017-02-24/a-japanese-fix-for-american-savings-1-25-percent-interest?cmpid=flipboard
Title: Re: Cash Parking
Post by: Rob L on March 31, 2017, 09:31:11 AM
Anyone have an account here https://www.purepoint.com/online-banking/savings-account/high-yield  ?

Edit:  Looks like they are extremely new for this company/brand.  Now sure what I think about that.  But those rates :)  https://www.bloomberg.com/news/articles/2017-02-24/a-japanese-fix-for-american-savings-1-25-percent-interest?cmpid=flipboard

Looks like a really good rate for a normal fully liquid savings account (note $10k minimum deposit).
To keep things in perspective the Treasury yield curve today 3/31/2017 (from CNN Money):

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fi.imgur.com%2FlzCkrRq.png&hash=9323a63fff711efb2677e5d977ab43de)

The 2 year is 1.28% (from the US Treasury web site). Don't know why it's not on the graph above.
Title: Re: Cash Parking
Post by: jheizer on March 31, 2017, 09:49:55 AM
Yeah doing some more reading last night it seems like it checks out for everyone.  The big question is just will the rates remain this high or are they just trying to draw money in and then drop them back to a closer to current market rate.  I'm probably going to open one but have to do some moving around first.  (And I don't know the info to our savings account.  Wife is the day to day money person.)
Title: Re: Cash Parking
Post by: Debt Free on March 31, 2017, 02:25:40 PM
Way I'm reading their terms, the first $9,999.99 is only earning 0.25% and then on the remaining $0.01 you'll make the 1.25%.

So if you have $100,000.00 there, effectively you will earn 1.15%.
$500,000, you'll earn 1.23%
Title: Re: Cash Parking
Post by: jheizer on March 31, 2017, 02:43:54 PM
I just don't think they worded it very good.  Here is seems clearer that it is 10k+ daily balance  = 1.25% rate.  https://www.purepoint.com/htdocs/acct/sav/rates/interest_rate.jsp?region=1408
Title: Re: Cash Parking
Post by: Rob L on March 31, 2017, 06:46:10 PM
And, keeping things in perspective, my net total returns from Lending Club Q1 were -0.1886%.
Yeah, I actually lost $166.33 in the first three months this year.
Could be worse; I could have not elected to reduce my portfolio by half last year.
My remaining account is 14% cash and I am not currently re-investing. Don't think I'm alone.
Title: Re: Cash Parking
Post by: jheizer on March 31, 2017, 06:50:03 PM
Yup... Waiting on my official statement numbers for this month to decide myself.  Not doing 3 loss months in a row.
Title: Re: Cash Parking
Post by: nonattender on April 01, 2017, 12:55:25 AM
I just don't think they worded it very good.  Here is seems clearer that it is 10k+ daily balance  = 1.25% rate.  https://www.purepoint.com/htdocs/acct/sav/rates/interest_rate.jsp?region=1408

Nope, you don't want that.

Highest nationally available fully liquid account at the moment is 1.50% APY at mymemorybank.com (Republic Bank & Trust).  Rate's good for a year, on dollar 1 to dollar 249,999.  No POD.  Straight-up FDIC-insured checking account.  Must do ONE incoming ACH per month, as well as 5 point of sale (online is fine) debit card purchases per month.  So, set checking acct to xfer $x into memory per month / use their card somewhere 5x per month (neither of those things struck me as too onerous).  Only thing weird about the offering is that they do 15th of the month to 15th of the month statement closing - I kinda like that, actually.  My EOM activity list is already pretty full.
Title: Re: Cash Parking
Post by: nonattender on April 01, 2017, 01:10:26 AM
I noticed today that the APR for Andrews FCU 84-month shares certificates has been lowered from 3.0% to 2.2%.

Glad to see this worked out for you and that they got you sorted.  They were absolutely deluged, from what I gathered, so, no surprise they've dropped back.  Plenty of other CU's now up in the 2.75-3.00 range on 5 years, but none of them with Andrews' favorable EWPs.

Fed's Dudley out early today saying "maybe just 2 more increases this year"...  (My brain hears:  "Fed's Dudley might need to be out...")

The really, really smart guy that I like - the SF guy, John Williams - was out on Friday saying "3... maybe even 4".  But he's not voting until next year.  Hopefully, the others will listen to him...  he's neither dovish nor hawkish, probably the brightest guy they have there.

Title: Re: Cash Parking
Post by: Rob L on April 01, 2017, 09:07:48 AM
I noticed today that the APR for Andrews FCU 84-month shares certificates has been lowered from 3.0% to 2.2%.

Glad to see this worked out for you and that they got you sorted.  They were absolutely deluged, from what I gathered, so, no surprise they've dropped back.  Plenty of other CU's now up in the 2.75-3.00 range on 5 years, but none of them with Andrews' favorable EWPs.

Fed's Dudley out early today saying "maybe just 2 more increases this year"...  (My brain hears:  "Fed's Dudley might need to be out...")

The really, really smart guy that I like - the SF guy, John Williams - was out on Friday saying "3... maybe even 4".  But he's not voting until next year.  Hopefully, the others will listen to him...  he's neither dovish nor hawkish, probably the brightest guy they have there.

Most voting FOMC members are currently (3/15/2017) saying they expect two (lets not spook the markets):

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fi.imgur.com%2FkJI994Q.png&hash=f28a1d3828509abff4025a1819869fab)

This Richmond Fed report is an interesting read:

https://www.richmondfed.org/~/media/richmondfedorg/research/national_economy/national_economic_indicators/pdf/all_charts.pdf (https://www.richmondfed.org/~/media/richmondfedorg/research/national_economy/national_economic_indicators/pdf/all_charts.pdf)
Title: Re: Cash Parking
Post by: Fred93 on April 01, 2017, 01:32:42 PM
Most voting FOMC members are currently (3/15/2017) saying they expect two (lets not spook the markets):

Yea, but those "dot plots" have been way off over the last couple of years, with most voting members thinking rates would rise much faster than they have risen.  This means of course that they were "data directed", which is another way of saying that they do not have the ability to predict economic conditions very well.

Now tho, they might be right.  Maybe.  Seems like maybe.  On the other hand, what is the basis for putting faith in an indicator that has been so often wrong?  I think we should ignore the dots.
Title: Re: Cash Parking
Post by: Rob L on April 01, 2017, 02:19:36 PM
Most voting FOMC members are currently (3/15/2017) saying they expect two (lets not spook the markets):

Yea, but those "dot plots" have been way off over the last couple of years, with most voting members thinking rates would rise much faster than they have risen.  This means of course that they were "data directed", which is another way of saying that they do not have the ability to predict economic conditions very well.

Now tho, they might be right.  Maybe.  Seems like maybe.  On the other hand, what is the basis for putting faith in an indicator that has been so often wrong?  I think we should ignore the dots.

Maybe put a little credence in their "longer run" forecast (perfect image of a down arrow indicating of course that we're all dead).
Title: Re: Cash Parking
Post by: nonattender on April 01, 2017, 08:52:14 PM
Most voting FOMC members are currently (3/15/2017) saying they expect two (lets not spook the markets):

You know, oddly enough, I think that a return to something resembling normality might actually lend confidence to the markets.  Once we get in the ~2.5-3 range, I think there might be a bit of a spook-factor, but, for now, it's kinda *less* spooky to have the market in control of itself and more on its own feet, rather than being propped up, globally (and having to deal w/uncertainty of "what will ECB, FOMC, XYZ do?")...  Ideally, I feel like I shouldn't have to know Mario Draghi's name - or who he is - I'm kinda tired of "central banks", least in the sense that the markets have been so dependent on them, being so completely central and such a major factor to watch.

Maybe that's just me, but I think that might be a part of the animal spirits being awakened again - a return to a 'free market market'.

BTW, the down arrow that you pointed out, complete with long-run-all-dead econ joke, was funny - thanks for the gallows humor. :)
Title: Re: Cash Parking
Post by: Rob L on April 02, 2017, 11:53:42 AM
Most voting FOMC members are currently (3/15/2017) saying they expect two (lets not spook the markets):

You know, oddly enough, I think that a return to something resembling normality might actually lend confidence to the markets.  Once we get in the ~2.5-3 range, I think there might be a bit of a spook-factor, but, for now, it's kinda *less* spooky to have the market in control of itself and more on its own feet, rather than being propped up, globally (and having to deal w/uncertainty of "what will ECB, FOMC, XYZ do?")...  Ideally, I feel like I shouldn't have to know Mario Draghi's name - or who he is - I'm kinda tired of "central banks", least in the sense that the markets have been so dependent on them, being so completely central and such a major factor to watch.

Maybe that's just me, but I think that might be a part of the animal spirits being awakened again - a return to a 'free market market'.

BTW, the down arrow that you pointed out, complete with long-run-all-dead econ joke, was funny - thanks for the gallows humor. :)

There's the old "three steps and a stumble" observation that's surely in the back of the minds of many market participants, and probably some of the FOMC voting members as well. It's in mine. Don't want that to become a self fulfilling prophesy for the markets and the real economy. (PS: don't call me Shirley).
Title: Re: Cash Parking
Post by: Rob L on April 02, 2017, 01:22:08 PM
My apprehension was misplaced. Things worked out well, but it wasn't a smooth process.
Late this afternoon I received a message from the Andrews website. The message said:

"Per your application comment, you are attempting to establish IRA Certificates and not the fixed rate certificates you have elected on your application. Due to us being unable to finalize your request, this application will be canceled."

Uh Oh.. There was a phone number to call. I did at 5:30 pm (they close at 7 pm) and I (surprisingly) actually reached a person. Ultimately she was able to resolve everything; issuing desired IRA certificates for my wife and me (yes at 3%) and even made them effective in mid February when they had received our money. Thought this was pretty amazing actually. Life is full of surprises.

I did maintain a bit of apprehension until today when interest was posted for the first time.
We did get the 3% as promised, back dated to 2/17/2017. Remarkable!
Title: Re: Cash Parking
Post by: nonattender on April 09, 2017, 01:23:28 PM
I just reverse-mortgaged my house to Magnum P.I. (whose sly Fox News commercials have allayed my fears about naughty banks trying to steal my home, when, actually, they just want me to be able to enjoy myself, now, with no consequence or thoughts of the future).  I then took that money and signed up to put it all into Snapchat's IPO, which, as far as I can tell, is a program that will display whatever one puts into it, for a very short time, and then - *poof* - it's gone.  I heard the first SEC filing had an 'irony disclosure' but that it later disappeared.

Woohoo - I'm rich!

Ok, taking all my fake SNAP IPO winnings and putting it all on YayYo!  I am not bothered one bit that this means "cocaine" in Spanish:

http://www.yayyoipo.com

And the prize for most hilarious SEC filing one can read (unless one is so stupid as to have invested):

https://www.sec.gov/Archives/edgar/data/1691077/000161577416008925/s104953_partiiandiii.htm

This is gonna give massive credibility to the new Reg A offerings / crowdfunding.  I am thrilled by this.

 ::) (this icon does not capture the extent to which my eyes roll back in my head in complete sarcasm)
Title: Re: Cash Parking
Post by: jheizer on December 20, 2017, 11:12:43 AM
Not as good as some of the past deals on here, but Ally has a 12 month 2% CD deal right now.
Title: Re: Cash Parking
Post by: nonattender on December 20, 2017, 11:41:27 PM
Not as good as some of the past deals on here, but Ally has a 12 month 2% CD deal right now.

Also have an 11-month No Penalty CD ($25k min) at 1.75% - tangentially, I bought some ALLY, a little while back.
Title: Re: Cash Parking
Post by: Rob L on January 20, 2018, 05:27:16 PM
The U S Postal Service Federal Credit Union is offering a 24 month IRA at 3% APY.

See: https://www.depositaccounts.com/ira/2-year-ira-rates.html (https://www.depositaccounts.com/ira/2-year-ira-rates.html)

You have to sign up for membership in the American Philatelic Society to join the FCU.
Two reviews of the FCU both very bad. Probably a nightmare of paperwork to actually get invested with them.
I looked hard but could not find the early withdrawal penalty amount; only that there is one. The term is only 2 years so not sure it matters much.
However, parking money at 3% for a couple of years might be worth the hassle. I may give it a try.
Title: Re: Cash Parking
Post by: tom242 on January 28, 2018, 01:39:41 AM
I've had good luck with my short term cash using PeerStreet for the last 12 months. They offer real estate backed loans with terms of 8 - 24+ months.  Most are around 12 months.  I've made several $1000 investments with 10 - 12 month terms and interest rates >= to 7%.  Once a month they also offer 1 month 3% loans - I just tried their January offer.  All notes can be paid off early, but re-investing is fast and easy. 

Tom

Use this link to register and we'll each receive a 1% Bump our our next investment when you fund your account .  http://www.peerstreet.com/join?ref=2lc3ytz

   
Title: Re: Cash Parking
Post by: Rob L on January 28, 2018, 11:48:44 AM
For cash parking I'm looking to invest what are to me rather large sums of money with exceedingly small risk (like CD's). PeerStreet as well as LC, Prosper, etc. are different animals but possibly very good (or bad) ones moving out on the risk curve.

FWIW I emailed U S Postal Service Federal Credit Union regarding the process opening an IRA account and funding it from another custodian. They did not reply. I did find out their EWP is 180 days of interest. Don't think I'll be investing with them.

Connexus Credit Union is offering a 3% 5 year CD, EWP is 365 days of interest; ouch!
https://www.depositaccounts.com/banks/connexus-credit-union/offers/ (https://www.depositaccounts.com/banks/connexus-credit-union/offers/)
https://www.connexuscu.org/accounts/iras/ (https://www.connexuscu.org/accounts/iras/)

Read where a lot of banks and credit unions are expected to have special IRA offers as tax time approaches. Think I'll bide my time a bit. Interest rates still appear to be headed up. Sure would like that two year 3% deal though. Maybe I'll get lucky.
Title: Re: Cash Parking
Post by: anabio on January 29, 2018, 02:04:34 PM
Got one year to go....but I really can start using it now as a kind of 1 year CD...just haven't got the urge yet.

11 years ago I "hid" 200,000 cash in a fixed annuity....not for investment purposes but to get it off my assets so I even had a chance of getting financial aid for my children, one of whom was going to college a few years later.

Side note: Lot of good that did me...among other colleges, she got accepted into a couple of UC systems...even with their high costs we were only able to get about $3,000 in LOANS...no free money...I made too much money...didn't think that one through the whole way....

Anyway. That fixed annuity pays 3% and in one year there will no longer be any withdrawal penalty, so I can start using it as a bank savings account...

Not sure what they will do if they see multiple deposits coming in and withdrawals going out... anyone have any experience in this situation...will they stop me from making deposits/withdrawals???
Title: Re: Cash Parking
Post by: nonattender on February 27, 2018, 02:43:32 AM
13-month CD @ 2.75% APY (only avail for two days, 2/27 and 2/28, max $250k, must have residential address in MA, NH, ME, CT, VT, or RI):

https://www.harborone.com/remarkable

(I'm terribly tempted to get on the phone with them tomorrow, put on my best Bahsten accent - I speak Brahmin and Southie - and try to find a sweet teller who will let me pretend I live out of my old office... but I probably can't get thea from heah.  Maybe some of you can - it looks like a sweet deal!)

Title: Re: Cash Parking
Post by: Rob L on March 11, 2018, 07:11:52 PM
My apprehension was misplaced. Things worked out well, but it wasn't a smooth process.
Late this afternoon I received a message from the Andrews website. The message said:

"Per your application comment, you are attempting to establish IRA Certificates and not the fixed rate certificates you have elected on your application. Due to us being unable to finalize your request, this application will be canceled."

Uh Oh.. There was a phone number to call. I did at 5:30 pm (they close at 7 pm) and I (surprisingly) actually reached a person. Ultimately she was able to resolve everything; issuing desired IRA certificates for my wife and me (yes at 3%) and even made them effective in mid February when they had received our money. Thought this was pretty amazing actually. Life is full of surprises.

I did maintain a bit of apprehension until today when interest was posted for the first time.
We did get the 3% as promised, back dated to 2/17/2017. Remarkable!

Recently past the one year anniversary of my 3% 84 month Andrews FCU CD's. Still the best deal I've seen even since that time.
Meanwhile I just parked some cash at Ally Bank in 12 month CD's at 2.0%. IIRC EWP is only 60 days so I'm just waiting for higher rates to come.
Ally typically has lower APR but lower EWP. You can get 3% at any number of places for 5 year term, but EWP is a full year of interest.
They call it the 3 for 5 club and its membership is growing.
Betting on higher rates (slowly) so parking this cash short term expecting better rates a year from now.
Title: Re: Cash Parking
Post by: nonattender on March 12, 2018, 03:18:28 AM
There's a 4% 60 monther lurking in the Southeast...  I, too, expect much better fishing for savers in the near future - nationwide.
Title: Re: Cash Parking
Post by: Rob L on April 11, 2018, 12:24:22 AM
Goldman (Marcus) upped their online savings account APR to 1.6%.
https://www.marcus.com/us/en/savings/high-yield-savings?prd=os&chl=ag&schl=agd&cid=2955844 (https://www.marcus.com/us/en/savings/high-yield-savings?prd=os&chl=ag&schl=agd&cid=2955844)

Ally at 1.45% is starting to fall behind a bit.
Popular Direct tops the list at 2%.
Title: Re: Cash Parking
Post by: jheizer on April 11, 2018, 12:38:15 AM
Been nice seeing them all go up lately. Was surprised to see my purepoint at 1.75 a few days ago.
Title: Re: Cash Parking
Post by: Fred93 on April 11, 2018, 01:14:57 AM
There's a thing going on right now where short term muni bonds, and their associated muni bond funds, are yielding more relative to taxable alternatives than is usual.

Vanguard's California tax-free money market fund VCTXX, for example, has a 1.32% SEC yield right now.  That's equiv 2.87% taxable for me!

Some brokers have stopped allowing people to buy this fund.  Fidelity for example.  They're trying to stop the flow out of their own higher fee funds.  Vanguard refuses to give kickbacks to brokers.  TDAmeritrade is still allowing purchase, and of course you can buy it thru Vanguard.  TDAmeritrade won't allow VCTXX to be the money market fund that your money rolls into and out of automatically.  You have to place explicit buy and sell orders.

You can also buy very short term muni bonds right now.  Most brokers mark the bonds up so much that it really kills the yield on very short term bonds.  Retail customers just get really bad pricing.  However, at Fidelity right now I am able to buy some short term AA and above California muni bonds at yields of 1.3% to 1.5%  I've been buying some with only 3mo to 6 mo to maturity.  These are the things you would find in a muni money market fund!

Individual brokers' characteristics differ in funny ways.  At TDAmeritrade I just buy VCTXX, because they won't sell me muni bonds at a decent markup.  At Fidelity I just buy the short term muni bonds myself, because they won't sell me VCTXX. 

I've been selling T bills and whatnot and buying short term munis lately.
Title: Re: Cash Parking
Post by: nonattender on April 11, 2018, 01:23:36 PM
I'd feel uncomfortable owning Californian municipal debt, but that's probably just the result of some sort of subconscious bias that I have against bankrupt, totally-out-of-control spenders whose governments and/or politicians seem, if the fake news can be believed, to be about to secede... :)

I'll say two Hail Moonbeams and see if I stop seeing a strange resemblance between modern day California politics / 1860's era Southern States.

(I'll be fine.  You probably will be, too;  I don't know.  That stuff's not for me, though.)
Title: Re: Cash Parking
Post by: Fred93 on April 11, 2018, 01:50:36 PM
I'd feel uncomfortable owning Californian municipal debt, but that's probably just the result of some sort of subconscious bias that I have against bankrupt, totally-out-of-control spenders whose governments and/or politicians seem, if the fake news can be believed, to be about to secede... :)

Fake news definitely should not be believed.  The question, when one doubts the long term viability of policy is the maturity of the debt in question.  I'm buying CA debt with 2 to 8 month maturities.  Nothing crazy will happen in that time frame.


Quote
I'll say two Hail Moonbeams and see if I stop seeing a strange resemblance between modern day California politics / 1860's era Southern States.

Interesting.  I've not heard that comparison before.  There are many problems with California politics.  I'm doin' what I can, but I'm all alone here!

Title: Re: Cash Parking
Post by: jheizer on April 11, 2018, 01:55:14 PM
Buying bonds like that is a game I've never tried to play.  One of these days I need to read up on it all more.  Any time I am tempted my mind just tries to figure out what I am do wrong/if this is good, why is it being sold.
Title: Re: Cash Parking
Post by: nonattender on April 11, 2018, 02:19:50 PM
Quote
I'll say two Hail Moonbeams and see if I stop seeing a strange resemblance between modern day California politics / 1860's era Southern States.

Interesting.  I've not heard that comparison before.  There are many problems with California politics.  I'm doin' what I can, but I'm all alone here!

Well, it just kinda strikes me as the new home of indentured servitude.  They pay, but, relatively speaking, it looks to me just a little bit too much like a smug liberal version of sharecropping, complete with the continual importation of labor (which then votes "correctly"). ;)

I think some guy published a piece along this line in The Atlantic a few weeks back, but the outcry from the overlords made 'em retract.

That guy is lucky he's not in the Atlantic, now (like tied to a boat anchor, at the bottom of it) - after saying truths out loud that made it uncomfortable for agriculture and the H1-B tech mafia...  Luckily, they're still polite out there and he's just being shunned at dinner parties (and being unfriended on the Facebook / losing "followers" / getting mean frowny faces or whatever.)

(If you're feeling lonely, say two Hail Rohrabachers and head Orange-way?)
Title: Re: Cash Parking
Post by: Fred93 on April 11, 2018, 02:48:53 PM
Buying bonds like that is a game I've never tried to play.  One of these days I need to read up on it all more.  Any time I am tempted my mind just tries to figure out what I am do wrong/if this is good, why is it being sold.

You look at bond ratings and yields.  Choose a rating level you're comfortable with.  For munis I pick AA.  You look at bonds offered with that rating.  Usually there are several with similar yields. If one has a yield much higher than the others it definitely causes me to ask the question why.  Not why is it being sold, but why is it sitting there offered at a higher yield than similar bonds. 

For short maturities, these issues aren't heavy on my mind.  For longer maturity bonds, the questions are heavy, and I avoid states where I question the finances in general, such as Illinois.  I'm not buying any long maturity bonds now because of the risk of interest rates rising, so luckily I don't have to struggle with these creditworthiness questions.

For corporate bonds, I use the knowledge I have of the general corporate character of companies, and I treat bond ratings as a little less important.  We all know a lot about major corporations. 

For municipal bonds, the situation is reversed.  MOST muni bonds are issued by tiny issuers.  A particular sewer system, or transportation district (bus line perhaps), or a school district, etc.  There is no way I can understand these small entities, so I rely heavily on the bond rating agencies.  Of course you know general areas of danger, such as Detroit, but so do the ratings agencies, so these guys don't tend to show up on reasonably conservative screens.

Most brokers try to screw small retail clients by marking up bonds.  Luckily FINRA has a web site where you can view recent trades in particular bonds, so you can see whether your broker is marking up the bonds too much.  This varies heavily by broker.  Full service brokers are the worst, although sometimes your personal broker can waive his cut and reduce the markup.  At TDAmeritrade muni markups are bad now online, but you can call their "bond desk" and get better prices.  I hate this, but that's the way it is.  At Fidelity right now muni bonds have very low markups, even on very small size transactions.  I don't know why, or whether this will persist.  Its probably a mistake, ie some policy setting guy fat fingered his last edit. 

I've found recent corporate bond markups reasonable at both TDAmeritrade and Fidelity, although Fidelity is usually a bit better.  The TDAmeritrade bond desk will often give me a price as good as the Fidelity online quote.  I'm not presently buying corporate bonds, because their yields don't seem to be enough higher than treasuries to make it worthwhile, and muni bonds beat them right now in any case.  (At the short maturity end.)

Its interesting how different brokers have such different character.  People keep writing articles comparing "commissions" between different brokers, which is completely stupid, as all commissions are so low as to be irrelevant nowadays.  However, there are huge differences between brokers, and you actually have to use them to learn about these differences.

An example is the experience I've had buying VCTXX, where Fidelity lies and tells customers it is "closed to new investment", whereas TDAmeritrade gladly takes orders.  One funny thing about Vanguard funds... When buying thru Vanguard I've often had them call me up and ask how long I was gonna keep the money in the fund.  Its part of their grand scheme to keep expenses low.  They claim it helps them plan, but I suspect its real purpose is to make people feel a little guilty about frequent trading and thus make people trade less often which lowers Vanguard's trading costs.  I understand this, and usually tell them "several years", which is generally right for stocks or bonds.  I had never experienced one of these phone calls when buying a Vanguard fund thru another broker until today.  I got a call from a guy at TDAmeritrade who said Vanguard asked him to call me to ask about today's purchase of VCTXX.  How long did I plan to keep this money in the fund.  Heck, its a money market fund!  ...so this is a really strange question in this context.  People use mmf for very short term holding.  I have no idea when something will come along that catches my interest.  I made up a number and gave it to him.  Its not a promise after all.  Its just information.  I wonder if they remember these answers and check later how well customers predicted their own actions.  One could fantasize that it's like the ratings that Uber drivers give to customers. 

Title: Re: Cash Parking
Post by: nonattender on April 11, 2018, 03:24:18 PM
I wonder if they remember these answers and check later how well customers predicted their own actions.  One could fantasize that it's like the ratings that Uber drivers give to customers.

You should ask them for a copy of your SalesForce profile next time they call.  They won't give it to you, but it'll be a fun phonecall. :)
Title: Re: Cash Parking
Post by: jheizer on April 11, 2018, 03:38:05 PM
Thanks for the good long answer.  Oh and living in Illinois is AWESOME! not...

I guess the flip of my "why is this for sale", is the why hasn't someone else bought this already if it is a good deal.  Similar to say folio buying before we learned there can be very few good notes up for sale at times and those of us that had a really fast system had a major edge.  Others might not have every seen them at all and with the lack of history have no idea.  Too bad I only ran that for a few months before I decided to down size.

But back to bonds, so I do a search for say 4-8 month maturity of AA and above and sort by yield.  Refresh a few minutes later and the results are the same or very very close.  So I immediately go if these are all still available, why should I be the one buying them knowing nothing.  Or you do look at one more closely and see it has had 3 trades in the last month.  I get them most are small so they'll have low volume, but I also assume that maybe that means that have been up for sale by someone for all the time and just slowly getting bought as someone decides they are now a good deal. 

I guess put simply, its the case of not knowing what I don't know.
Title: Re: Cash Parking
Post by: Fred93 on April 11, 2018, 04:19:46 PM
I guess the flip of my "why is this for sale", is the why hasn't someone else bought this already if it is a good deal.

Do you ask yourself the same question when buying stocks?

I'm suspecting the answer is no.  If no, then what is fundamentally different about stocks?


Quote
I guess put simply, its the case of not knowing what I don't know.

I have no problem with that.  As you gain more familiarity, these concerns will diminish.

Title: Re: Cash Parking
Post by: jheizer on April 11, 2018, 04:37:40 PM
Do you ask yourself the same question when buying stocks?

That is a ridiculously good question.  I guess because on so many the issue size is so small vs market cap of a stock it effects how I think about it.

BUT I just realized why I've been missunderstanding so much.  I do most of my trading in etrade and they are showing bonds with both current bids and/or offers.  So the ones i thought were sitting were really buy orders.  Pulling it up in schwab, the starting YTM is way lower.  I totally overlooked that before.
Title: Re: Cash Parking
Post by: Rob L on April 11, 2018, 04:48:32 PM
Quote
I'll say two Hail Moonbeams and see if I stop seeing a strange resemblance between modern day California politics / 1860's era Southern States.

Interesting.  I've not heard that comparison before.  There are many problems with California politics.  I'm doin' what I can, but I'm all alone here!

Well, it just kinda strikes me as the new home of indentured servitude.  They pay, but, relatively speaking, it looks to me just a little bit too much like a smug liberal version of sharecropping, complete with the continual importation of labor (which then votes "correctly"). ;)

I think some guy published a piece along this line in The Atlantic a few weeks back, but the outcry from the overlords made 'em retract.

That guy is lucky he's not in the Atlantic, now (like tied to a boat anchor, at the bottom of it) - after saying truths out loud that made it uncomfortable for agriculture and the H1-B tech mafia...  Luckily, they're still polite out there and he's just being shunned at dinner parties (and being unfriended on the Facebook / losing "followers" / getting mean frowny faces or whatever.)

(If you're feeling lonely, say two Hail Rohrabachers and head Orange-way?)

A native Californian that paints a rather bleak picture of California is Victor Davis Hanson.
https://en.wikipedia.org/wiki/Victor_Davis_Hanson (https://en.wikipedia.org/wiki/Victor_Davis_Hanson)
He's a very adept public speaker and has numerous interviews and lectures on YouTube.
If your politics is not conservative I doubt you'll like what he has to say.
Me; I don't watch the news any more. I don't even know what the news is anymore.

FWIW I feel very fortunate to live in Virginia. Our state income tax is 5.75% and all social security income is excluded.
WalletHub ranks Virginia the overall 5th best state in which to retire and 18th in affordability.
https://wallethub.com/edu/best-and-worst-states-to-retire/18592/ (https://wallethub.com/edu/best-and-worst-states-to-retire/18592/)

Virginia also ranks 21st overall best state to raise a family; 17th in education and 13th in affordability.
California ranks 10th overall best state to raise a family; 27th in education and 29th in affordability. (#1 in Family Fun Rank though; WallyWorld I guess)!
https://wallethub.com/edu/best-states-to-raise-a-family/31065/ (https://wallethub.com/edu/best-states-to-raise-a-family/31065/)

Title: Re: Cash Parking
Post by: jheizer on April 11, 2018, 05:15:32 PM
IL ranks best state to raise your taxes then drop the money in the toilet.  Oh and my property taxes are just totally awesome too.
Title: Re: Cash Parking
Post by: lascott on April 12, 2018, 01:31:30 AM
IL ranks best state to raise your taxes then drop the money in the toilet.  Oh and my property taxes are just totally awesome too.
There is this if you are withdrawing from an IRA
https://www.retirementliving.com/taxes-alabama-iowa#ILLINOIS
Quote
Retirement Income Taxes: Illinois does not tax distributions received from qualified employee benefit plans, including 401(K) plans; an Individual Retirement Account, (IRA) or a self-employee retirement plan; a traditional IRA that has been converted to a Roth IRA; the redemption of U.S. retirement bonds; state and local government deferred compensation plans; a government retirement or government disability plan, including military plans; railroad retirement income; retirement payments to retired partners; a lump sum distribution of appreciated employer securities; and the federally taxed portion of Social Security benefits.
Similar site:
https://www.kiplinger.com/tool/retirement/T055-S001-state-by-state-guide-to-taxes-on-retirees/index.php?map=&state_id=14&state=Illinois
Title: Re: Cash Parking
Post by: jheizer on April 12, 2018, 08:01:24 AM
Wow.  Bet they catch that make it 3x the average rate soon.  Lol

I'm only 34 so sure that'll change by the time need it.
Title: Re: Cash Parking
Post by: Rob L on November 07, 2018, 05:41:11 PM
The 3% for 5 years (3 for 5) CD club has been usurped.
The 4% for 5 year CD club now has its first member, available to all, from Connexus.
EWP is 365 days of interest. Pretty much in line. I've seen some CD's with "payday loan" commensurate EWP's but this isn't one.
https://www.connexuscu.org/accounts/share-certificates/ (https://www.connexuscu.org/accounts/share-certificates/)
https://www.depositaccounts.com/banks/connexus-credit-union.html#rates (https://www.depositaccounts.com/banks/connexus-credit-union.html#rates)
"The times they are a'changin".

Title: Re: Cash Parking
Post by: jheizer on November 07, 2018, 06:02:56 PM
Nice to see 2 year maturities over 3%
Title: Re: Cash Parking
Post by: Rob L on November 24, 2018, 04:45:51 PM
FWIW Andrews FCU is offering an 84 month CD at 3.45% (EWP only 180 days of interest).
It's a special offer that ends 12/31.
https://www.andrewsfcu.org/personal/checking-and-savings/share-certificates.html (https://www.andrewsfcu.org/personal/checking-and-savings/share-certificates.html)
I parked some cash in these two years ago at 3.0% (see earlier posts this thread). My how time flies.

For the short term they are offering 2.86% for an 8 month CD (90 day EWP) until 12/31.
Title: Re: Cash Parking
Post by: Rob L on December 07, 2018, 10:16:49 AM
With the recent sharp drop in interest rates the 4% for 5 year club now has no members.
Connexus reduced its rate from 4% to 3.5%. Not surprising.
Title: Re: Cash Parking
Post by: jheizer on December 13, 2018, 11:25:33 AM
Meanwhile
"In A Bold Asset Grab, Robinhood Offers 3% Interest On Checking And Savings Accounts"
https://www.forbes.com/sites/jeffkauflin/2018/12/13/in-a-bold-asset-grab-robinhood-offers-3-interest-on-checking-and-savings-accounts/#58e12944341a
Title: Re: Cash Parking
Post by: Rob L on December 13, 2018, 09:39:25 PM
Meanwhile
"In A Bold Asset Grab, Robinhood Offers 3% Interest On Checking And Savings Accounts"
https://www.forbes.com/sites/jeffkauflin/2018/12/13/in-a-bold-asset-grab-robinhood-offers-3-interest-on-checking-and-savings-accounts/#58e12944341a

Such an interesting thing! Checked out the web site and I'm still not sure if the account is FDIC insured (SIPC instead?). However, I can earn enough interest to fill my tub with mac-and-cheese or buy a really neat snake. My only familiarity with Robin Hood is from Reddit posts from quite some number of unfortunate YOLO folks that thought trading stock options on their cell phones was a good idea and turned 5 figure accounts into one figure accounts. Hint; the snakes are on the other side of those trades. If I can park FDIC insured cash there at 3% and name a beneficiary I'm in!
Title: Re: Cash Parking
Post by: jheizer on December 13, 2018, 09:45:29 PM
My assumpting is SIPC, but will see once more is known.   I hopped on the list.  Assuming it's to it her more people on their brokerage accounts.  Free there = selling your order flow.  But kids these days like being the product to get something for free.
Title: Re: Cash Parking
Post by: bobeubanks on December 13, 2018, 11:55:05 PM
https://www.usatoday.com/story/money/2018/12/13/robinhood-savings-and-checking-account-they-fdic-insured/2303674002/


Title: Re: Cash Parking
Post by: nonattender on December 14, 2018, 06:13:23 AM
My assumpting is SIPC, but will see once more is known.   I hopped on the list.  Assuming it's to it her more people on their brokerage accounts.  Free there = selling your order flow.  But kids these days like being the product to get something for free.

Yes, SIPC is my understanding of the insurance that will be provided on funds, up to $250k.  The product is not scheduled to launch until Q1 of 2019, so, thing may change and there may be delays.  I remember signing up with Robinhood - or trying to - a few years ago when they were about to launch free crypto services, but I didn't have the one type of cellphone platform (Apple) that they supported - and they had no other way to access their platform.  Maybe that will change... or already has.  I never went back.

There are a few 3% APY liquid FDIC checking/savings accounts around, but they're in limited areas.  I think there's one in part of Texas, one in a few counties around Detroit.  There's a 2.50% APY online FDIC acct being offered by a Boston bank, on the nationwide side.  EBSBDirect, I believe, is the name of that one.

For short term CD's, I think there are some attractive-looking 3mo and 6mo at just under 3 (2.7-2.9 or so) at... Advancial?  Sounds right - not sure.  Connexial, Advancial, something like that.

I've been out of the equity market, mostly, for a while - still avoiding tech, kinda - but am starting to do some value shopping, at these levels.  Not trying to catch the exact bottom, but do think the bullshit pessimism is overblown, on an earnings basis, for many names...
Title: Re: Cash Parking
Post by: AnilG on December 14, 2018, 06:40:07 PM
https://www.usatoday.com/story/money/2018/12/14/robinhood-checking-and-savings-features-not-insured-says-sipc/2310208002/

Cash deposited in Robinhood's 3% checking and savings isn't insured, SIPC says

Title: Re: Cash Parking
Post by: jheizer on December 14, 2018, 10:24:13 PM
Ha. Interesting.
Title: Re: Cash Parking
Post by: Rob L on December 16, 2018, 10:58:43 AM
"Robinhood is going back to the drawing board.

Just a day after unveiling what it called checking and savings accounts, the financial technology startup said it is re-launching and re-naming the product, which came under immediate scrutiny from Wall Street and federal officials about potentially misleading investors."

https://www.cnbc.com/2018/12/15/robinhood-to-re-brand-savings-account-plan-after-widespread-criticism.html (https://www.cnbc.com/2018/12/15/robinhood-to-re-brand-savings-account-plan-after-widespread-criticism.html)
Title: Re: Cash Parking
Post by: jheizer on December 16, 2018, 11:37:52 AM
Oops...  Everything in the app has bee renamed to cash management.
Title: Re: Cash Parking
Post by: bobeubanks on December 17, 2018, 12:30:23 PM
Oh my. Getting stuff like this right should be job #1. 
Title: Re: Cash Parking
Post by: nonattender on February 28, 2019, 03:17:40 PM
Well, in light of DLI exploding, here's a safety play:

https://www.scb.bank/personal/savings-solutions/ (https://www.scb.bank/personal/savings-solutions/)

3% APY FDIC-insured savings (6 month intro rate).

$100k min. deposit, but FDIC-insured to $250k. :)
Title: Re: Cash Parking
Post by: Fred93 on February 28, 2019, 09:40:22 PM
You can get 2.5% on relatively short term treasury bonds/notes right now. 

You don't pay state tax on treasuries, so in a high tax state (like mine!) that's just about as good as that CD.
Title: Re: Cash Parking
Post by: nonattender on March 01, 2019, 01:17:30 AM
Well, then, for those who want 3% and still live in a free state. :)

(The SCB 3% acct, above, is a liquid fdic savings acct, not a CD.)

Speaking of free states:

AndrewsFCU.org (home of Air Force One!) has a 6mo 3.25% CD.
(It's a new money only thing, and is only open like 2 more days.)

Title: Re: Cash Parking
Post by: Rob L on March 27, 2019, 07:37:11 AM
A 4 year 4% APR CD (IRA only) is now being offered from City Credit Union in Dallas.
https://www.depositaccounts.com/banks/city-cu-tx/offers/ (https://www.depositaccounts.com/banks/city-cu-tx/offers/)

Good news is that anyone can join the CU if they're a member of the Dallas Historical Society.
Bad news is that an IRA CD has to be opened at one of their branches and the EWP terms are draconian:

https://assets.trabiancdn.com/api/file/kTkX90QTyEKNlx3y2Z3A+IRA_ROTH_CD_Disclosures-3-2019.pdf (https://assets.trabiancdn.com/api/file/kTkX90QTyEKNlx3y2Z3A+IRA_ROTH_CD_Disclosures-3-2019.pdf)

Think I might just open an account on line and see if it goes smoothly.
If it does I might take a quick trip to big D since I just had some CD's mature a couple of weeks ago and the money needs a home.
Title: Re: Cash Parking
Post by: Rob L on April 19, 2019, 01:07:40 AM
City Credit Union promo 48 moth 4% CD: Ended 4/15/2019
The story of "meant to be".

I happened on this near the time it was offered around March 26. I learned that the IRA CD must be opened at a branch in person with an FBO check in hand. First I easily on-line opened a savings account after joining the DHS. The funds I chose to use for the IRA CD were at Fidelity in a Treasury ETF, so I sold and waited for settlement. When the cash was available in the account I completed the Fidelity form requesting the FBO check be mailed to me. Fidelity required a medallion signature on the form which I acquired at my bank (with much more bureaucratic difficulty than I thought reasonable). I mailed the form to Fidelity next day mail. Fidelity was quite responsive and mailed me the check within a very few days.

Now for the interesting part. I live in Virginia and booked a flight leaving at 6:00 am for Dallas and returning at 6:45 pm same day on 4/26. I had to get up at 2:30 am to make the flight. Before I left I checked the City CU website and the promo CD had been taken down. As I left I told my wife I'd missed it by a day and expected to open a MMKT account and move the money ASAP or possibly get Fidelity to void the check (just a thought). I arrived at Dallas and took a UBER to the main branch on Ferguson Avenue. I arrived at their door about 10 minutes before they opened, then checked in at the welcome desk and was told to wait until my name was called. In the lobby there was an electronic sign advertising rates and to my great surprise and elation the 48 month 4% promo CD was there! So wow, I'm not too late. What a relief. My name called I was greeted by a very friendly representative and went back to her office. I explained my purpose, presented my ID and check. I told her of my trek from VA, that I was a bit tired, and very glad to know the promo CD was still available and was assured it was. Half way through the paper work the question of "direct transfer" versus "rollover" came up and she said she should check with her boss. I'm thinking I obviously prefer direct transfer but a once a year rollover is just fine here. I'm waiting for a while totally unaware of the discussion they were having. The boss knew the promo had ended yesterday. She did not know since she was off the previous day and was not informed the promo CD was no longer available. Maybe the sign in the lobby was the deciding factor but she argued my case and I did get the promo CD. Almost a miracle.

Three things:

1) I decided to go to the main branch on Ferguson Ave. There was one closer to the airport. Would I have had the good fortune to encounter a representative elsewhere that was unaware that the promo CD was not over? Would there have been a "boss" with the authority to approve the issuance of the CD given the circumstances?

2) The sign in the lobby still offering the promo CD. Would I have seen one elsewhere?

3) Arriving all the way flying in from from VA before the branch opened. Somewhere in the morning this oversight would have been corrected.
Title: Re: Cash Parking
Post by: lascott on April 19, 2019, 10:51:29 PM
...
The funds I chose to use for the IRA CD were at Fidelity in a Treasury ETF, so I sold and waited for settlement. When the cash was available in the account I completed the Fidelity form requesting the FBO check be mailed to me. Fidelity required a medallion signature on the form which I acquired at my bank (with much more bureaucratic difficulty than I thought reasonable). I mailed the form to Fidelity next day mail. Fidelity was quite responsive and mailed me the check within a very few days. ...
Aside: I think you can just drive to one of their many branches and sign it in front of them instead of the medallion sig. I've done that with other forms.  Maybe you don't have any near you but just in case others need to do something similar and it works for them.
Title: Re: Cash Parking
Post by: Rob L on April 20, 2019, 01:10:24 AM
My closest Fidelity branch is in Richmond, about an hour away. My bank, I'm embarrassed to say, is Wells Fargo. They required my latest Fidelity account statement (two weeks stale) to verify funds availability. That statement, as totally meaningless as it was given the two week time lapse, met their requirements for the Medallion signature and I was fortunately able to provide a copy. When confronted with bureaucratic stupidity one must simply conform or lose. That's just the way it is.