Where to park short term savings
Now that the Feds have hiked interest rates, where is the best place for short term savings? I get 0% at my bank and have some CDs that earn .30 - .70%. I purchased my first short term treasury bond with a 2% yield to maturity. I would like to start laddering these treasury bonds so one or two come due a month. I'm not sure how much to keep in savings at 0%.
What does everyone here do?
I use betterment, they have an FDIC insured savings account or you can use short-term goal and the algo adjusts for risks (mix of short-term treasuries and stock etfs).
0% hurts against 8% inflation but so does market risk.
I use a few different accounts for short term savings. Marcus pays .85% on savings accounts right now i believe. Robinhood pays 1% on cash in your account. Also use blockfi, crypto dot com, and gemini for stablecoin interest around 7%-10%. FTX Earn pays 8% on first 10k in your account (even on USD cash). Also started buying short term corporate bond funds VCSH and VUSB in the last 3 weeks or so after bonds seemed to finally get a bid after a few months of falling. And depending on your definition of short term, I also have 10k in iBonds at a blended rate of ~8.3% for the next year. Stairs app by groundfloor pays 6% on money you lend to them and it can be withdrawn at any time.
Interesting on FTX, could you discuss how easy is it to move the money back to my bank account?
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