HYSA (again)

[Don]

Yes, again. But this time I actually sent in an application and was approved. Now it's time to second guess. I had my choices narrowed down to Ally Bank, Citizens Access, and UFB Direct. They all seem very similar, but UFB offered a slightly higher APR, so I went with them. They were also the only one that would let me apply as a Trust. The others all required applying as a personal account, then converting. 

So here's the question. Before I move a bunch of funds over, I'm actually giving some thought to opening another at a different bank just to cover my bases. Since the ones I'm looking at all have zero maintenance fees and require no opening deposit, do you see any downside to doing so beyond the minor hassle of opening an account? If it matters, I'm anticipating just letting the money sit there.

Thanks.

[special]

I have no idea about the background story here, you mention a Trust but I think I missed the details the first time this was discussed.

I am also curious about Trust. I need to look more into this topic.

[Fritz]

have you looked into a federal credit union near you?
MidFla and Tampa Bay seem to be well reviewed

[rgG]

Unless the amount is over $250K. the FDIC insurance limit for a trust per bank, I would KISS and just have one account.
If the amount will exceed the $250K, you could open another per each $250K

[Don]

Thanks for the replies.

We've put our joint accounts into our Trust, with my wife and I as Trustees, as recommended by the attorney who drew it up. And the trust is the secondary beneficiary (after my wife) in my 401k, IRA, and Annuity. We're talking about only 10k here, so I'm not worried about hitting the FDIC threshold.   I just think it would be better to earn $400 in interest rather that the $1.40 it's earning now in our regular local savings account. The local banks and credit unions don't come close to the online rates I'm seeing. And yes, I realize those are variable rates.

I guess it's simple enough to stick with the one I have until I see a reason to change.

[bhaveshp]

If you happen to own a taxable brokerage account at Vanguard, Fidelity or Schwab, have you considered putting the funds into a Treasury Money Market fund? These will likely beat HYSA yields, while being safe & liquid. These funds are VUSXX, FDLXX, SNSXX respectively at the above brokerages. In my case VUSXX also happens to be CA tax free.

Here's a ChatGPT snippet on these:
https://chatgpt.com/share/687ac64c-f0f0-...dfcdf30b16

[Don]

If you happen to own a taxable brokerage account at Vanguard, Fidelity or Schwab, have you considered putting the funds into a Treasury Money Market fund? These will likely beat HYSA yields, while being safe & liquid. These funds are VUSXX, FDLXX, SNSXX respectively at the above brokerages. In my case VUSXX also happens to be CA tax free.

Here's a ChatGPT snippet on these:
https://chatgpt.com/share/687ac64c-f0f0-...dfcdf30b16

Interesting to see this reply now. I just left the Fidelity website, as I'm realizing that that might be a better place to move my personal checking account funds into, and dump my traditional checking account (which is earning zero interest). The one I'm looking at is called their Fidelity® Government Money Market Fund (3.96% 7-day yield). It says the funds are held in a money market fund (SPAXX). These funds are not FDIC insured, but their other option, something called the FDIC-Insured Deposit Sweep Program which is, pays a lower rate 2.21% annual percentage yield. 

I'm realizing I write so few checks, that it's not even important anymore, especially with ACH bill pay. And the Fidelity account does have checkwriting if I really need to. And all my IRA stuff is already at Fidelity. Realistically, I could do away with checking altogether and just put those funds in an interest earning savings account. Again, we're not talking big money here, but earning a few dollars beats earning a few cents.

[bhaveshp]

If you happen to own a taxable brokerage account at Vanguard, Fidelity or Schwab, have you considered putting the funds into a Treasury Money Market fund? These will likely beat HYSA yields, while being safe & liquid. These funds are VUSXX, FDLXX, SNSXX respectively at the above brokerages. In my case VUSXX also happens to be CA tax free.

Here's a ChatGPT snippet on these:
https://chatgpt.com/share/687ac64c-f0f0-...dfcdf30b16

Interesting to see this reply now. I just left the Fidelity website, as I'm realizing that that might be a better place to move my personal checking account funds into, and dump my traditional checking account (which is earning zero interest). The one I'm looking at is called their Fidelity® Government Money Market Fund (3.96% 7-day yield). It says the funds are held in a money market fund (SPAXX). These funds are not FDIC insured, but their other option, something called the FDIC-Insured Deposit Sweep Program which is, pays a lower rate 2.21% annual percentage yield. 

I'm realizing I write so few checks, that it's not even important anymore, especially with ACH bill pay. And the Fidelity account does have checkwriting if I really need to. And all my IRA stuff is already at Fidelity. Realistically, I could do away with checking altogether and just put those funds in an interest earning savings account. Again, we're not talking big money here, but earning a few dollars beats earning a few cents.

Yes, Fidelity offers a great Cash Management Account (CMA) which can be used as a traditional checking account. There's a huge thread on the Bogleheads forum discussing using that.

https://www.bogleheads.org/forum/viewtopic.php?t=266538 

Seems like it works well enough.

[Don]

Thanks for that link. I'll check it out.