My bank insults me.
It slaps my face and gives me the bird.
One-hundredth of 1% interest on my savings accounts?
C’mon. That insults my intelligence. It mocks my wallet.
I bet your bank isn’t much better. Maybe it’s worse.
If you’re sitting on any cash at all, you should be earning about 5% on it.
And today, I’ll show you how to get it.
Got Cash in a Savings Account? Get It Out
As you’re probably aware, interest rates have surged recently.
Higher rates are terrible if you’re borrowing money for a car or a house or a credit-card balance.
But if you’re a saver who’s sitting on some cash, higher rates can be great.
After all, with the Federal Funds rate at 5.25% to 5.50%, there are plenty of risk-free ways today to lock in a yield of 5% or even more.
The thing is, so many savers out there aren’t taking advantage of these high rates. For example, if you’re keeping your cash in a traditional bank savings account, you’re getting screwed…
According to the Federal Deposit Insurance Company (FDIC), the national average rate on bank savings accounts is just .47%.
Check out the spread between what banks are earning on your cash, and what they pay you!
And as noted above, my bank, JP Morgan Chase, pays just one-hundredth of 1% — so rude!
Where can we do better?
Three Ways to Earn 5%+
Here are three sleep-easy ways to earn at least 5% on your cash.
EverBank — EverBank is a high-quality online bank that offers:
- 5.15% APY.
- No monthly maintenance fee.
- $0 to open and no minimum balance.
- FDIC-insured.
Schwab Value Advantage Money Fund® - Investor Shares — Schwab is a trusted low-cost broker.
It offers a popular money-market fund that currently yields 5.16%. The ticker is SWVXX.
The fund’s stated goal is to “seek the highest current income consistent with stability of capital and liquidity.” Essentially, it invests in high-quality, short-term money-market investments from U.S. and foreign issuers.
T-Bills — T-Bills, short for Treasury bills, are short-term U.S. government debt obligations backed by the Treasury Department. Terms range from four to fifty-two weeks.
If you’d like to lock in today’s high rates before they potentially go down in the future, take a look at T-bills.
As you can see below (courtesy of Bloomberg), you can lock in a rate of nearly 5% for the next year by buying one-year bills.
You can buy T-bills at online brokerages like Schwab, or at Treasury Direct, which is an official website of the U.S. government.
By the way, since T-bills aren’t taxable at the state level, their after-tax yield can look even more attractive.
You can explore Schwab’s T-Bill offerings here »
And you can explore Treasury Direct here »
Don’t Get Screwed
If you’re like most folks, your bank is screwing you.
Don’t accept the paltry yields they offer.
Remember, if you’re sitting on cash, you should be earning about 5% on it.
Don’t get screwed! Lock in some yield today.
Happy Investing.
Best Regards,
Founder
Crowdability.com
