Bonus - 6% online savings
FYI - If you're sitting on a signing bonus HSBC is offering a 6% online savings account.
Trending Content
| +135 | How to stop feeling like shit for not making it in IB? | 52 | 3h | |
| +101 | If Tik Tok is forced to sell, what banks do you think would be involved in the deal? | 46 | 3h | |
| +66 | Updated LA Banking Scene (2024) | 49 | 7h | |
| +57 | Why Is It Called Investment Banking? | 19 | 17h | |
| +38 | Ranking banks that went under | 19 | 11h | |
| +32 | A strategy for SA applicants late to the game like myself | 15 | 17m | |
| +31 | UBS Actual Buyside Exits 2024 Post-Integration | 9 | 3d | |
| +30 | Burnt Out M&A ASO | 15 | 1s | |
| +29 | Relevance of A-Levels for U.K. London recruiting | 21 | 7h | |
| +26 | Series 79 Help / Tips to Pass The First Attempt | 11 | 1d |
Career Resources
Yeah, 6% til the end of April I think, then it's about 5% after that. Still not a bad deal, and more accessible than a CD
6% interest is very low :(
You're right. You should walk down to the Chase branch on the corner and buy a 3 month CD @3.5%.
can you make more?
Definitely I can Skiptomylou.
pretty good considering most money market accounts are only yielding about 4.5%
Ivan please enlighten us.
Point is that those sitting on the bonus need to a) know it is there and b) need it readily available.
Putting this money in a high yield savings account is a smart move. Putting it in the market is riskier, and given our extremely risk adverse situation at the moment, a foolish idea (unless your pockets run deeper than most).
well, what i do not understand is calling a 6% deposit a "high-yield savings account".
6% return is close to nothing, to be honest. It is a good level of return for a risk-free investment, but it is negligible as a return per se.
Talking about the risk of putting bonus money in the market - you should rather consider a risk/reward relationship, not just a risk level.
Besides, what I also do not quite understand is why you are extremely risk-averse? imho, younger people should generally be more willing to take risks. While you're an analyst (or even associate), you won't probably posess more than a couple of hundreds of thousand dollars to invest. It is very doubtful that some 10-20% loss of this amount (if it happens) will be a catastrophe.
It is a "high-yield savings account" because it yields higher returns than your average savings account. That is just standard marketing speech for these banks.
6% is not close to nothing. A return of 0.5% as in Japan is close to nothing. Risk free is risk free for a reason. Lower rates for presumably no risk. I am not talking making alpha here. This is a good rate to lock in if you need all the money in the near future (which means you can't commit to a CD, or similar investment).
I am extremely risk adverse at the present moment and for the next 4 months because I know I will need that money for an apartment, cloths, moving and other expenses. I can't afford to risk my bonus money on the market. I am quite familiar with risk/reward relationships and have decided to accept a low risk/low reward profile for the next 4 months.
I agree. Young people should be very risky in their early years. The old adage, take your age and subtract it from 120; this is the percentage of your portfolio that should be allocated in stocks, has its merits. I plan on being risky once I have settled myself in a new city and I am sure I will have a steady income and job. I am sure you will agree, that at that time it would be a wise idea to begin making more risky investments.
So to sum this up: I am quite familiar with investment and portfolio management and agree with your perspective on young=more risk. However, what I was trying to voice was that given our (incoming full time analysts) limited horizon and certain need for all the cash, I don't feel it is a wise idea to gamble on high returns. Take a decent interest rate on your "high-yield savings account" and be sure your money will be there when your landlord requires last months, this months and security deposit.
rf is well below 6%. for a cash product that is great. if you want to catch a rally w/o equity risk, i'd hit a high-yield bond portfolio. many are up 2-3% ytd.
You are an absolute idiot if you put your bonus money in anything more risky than a money market fund if you are going to need the money for moving expenses this summer. That is all.
Ok, ok. If you say so, there are no doubts... It looks like being extremely risk-averse is very peculiar of US students.
And talking about savings accounts: no, 6% is not much. You may open your savings account in many countries with a higher interest rate, and it will be in a strong currency (relative to USD)
for a savings account, 6% is a lot. For a portfolio account, that can be considered kind of bad.
Ivan, you and I have had this talk before. Now others seem to be saying the same thing I am, which is that with your quest for 70% returns, your blithe assurance that the majority of risk can be "hedged away", and your outright dismissal of established markets, you are... rather unusual in your investment approach. All the wealth managers I've worked for, from Wachovia to Goldman, aimed for returns below 15% in their "aggressive" portfolios. Individual investments might have returned more, but the whole portfolio would never have an expected return of higher than 15%. The conservative and moderate portfolio returns were significantly lower. For instance, I remember Goldman's standard conservative portfolio having an expected return of around 6.5%. A savings account offering 6% would be amazing, then. Particularly given that you have to pay such high management fees to get into Goldman's PWM.
Hell, even Goldman's crazy private equity investments ($1m minimum for individuals) were doing anywhere from -5% to 20% while I was working there. But nothing close to 70%.
So, Ivan. Either you are an incredible genius with capabilities greater than the entirety of Wall Street, or you're lying through your teeth, or you're just young and inexperienced. I'm voting for the latter.
Hmm..it goes without saying that it is possible to earn more than 6%...this is too ridiculous for me to even finish the argument. Everyone else has already covered what I would have said anyway.
Officia id modi doloremque. Dolore placeat accusantium soluta sed quaerat necessitatibus. Tenetur officiis porro qui reiciendis. Architecto voluptatem voluptates excepturi maiores totam omnis.
Consequatur ut voluptatem eaque distinctio aut vel. Ipsam a culpa nostrum dolores. Officia quo qui est vitae odio et. Qui suscipit dolor magni dolor veniam. Voluptatum non laborum similique ipsa eum ut ipsum. Nostrum aut est cum aut exercitationem natus.
Nesciunt vero ut in doloremque. Esse natus ut veniam.
Eum voluptate et ut qui accusantium quae asperiores. Rerum omnis at suscipit fugit magni rem. Explicabo sit quis ut voluptate.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...