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Re: Max [maxmyinterest.com]

Posted: Thu Jun 28, 2018 3:39 pm
by eufo
Kbg wrote:
Thu Jun 28, 2018 1:37 pm
eufo wrote:
Thu Jun 28, 2018 12:45 pm
Kbg wrote:
Thu Jun 28, 2018 9:11 am


It shouldn't be feeling comfortable at all...you are losing .95% real as inflation is running about 2.8% now.
But yet it does.
Captain, illogical. :-)
Feelings are always illogical, but as long as I stick to a logical plan, all is good.

Re: Max [maxmyinterest.com]

Posted: Sun Jul 08, 2018 7:27 am
by ochotona
Ally 1.75%
Marcus 1.80%

Re: Max [maxmyinterest.com]

Posted: Sun Jul 08, 2018 2:29 pm
by jhogue
Note the effects of the FOMC’s deliberate flattening of the yield curve on investors’ Deep Cash choices:

3 month Treasury = 1.96%
1 year Treasury = 2.37%
30 year Treasury = 2.93%

1. Given that a 1 year T-bill now captures an astounding 93% of the yield of a 30 year T-bond, AND that the FOMC is transparently promising to raise the Fed Funds rate twice before the end of 2018, anyone who buys a longer term Treasury or CD seems to be buying unnecessary interest rate risk.

2. While I bonds for “deep cash” currently offer a comparatively attractive 2.52% (2.70% tax equivalent yield for this MN resident), and I purchased my usual limit of $5,000 paper I bonds with my 2017 IRS refund earlier this year, I will still be waiting until the November 2018 reset to purchase electronic I bonds from Treasury Direct in anticipation that there is almost certainly another increase in the I bond fixed rate component in the offing.

Re: Max [maxmyinterest.com]

Posted: Sat Jul 14, 2018 7:06 am
by ochotona
MangoMan wrote:
Sun Jul 08, 2018 8:19 am
ochotona wrote:
Sun Jul 08, 2018 7:27 am
Ally 1.75%
Marcus 1.80%
Meh
(Quasi Treasury) Vanguard Federal MM 1.84%
Purepoint 1.9%
Vanguard Prime MM 2.04%
Though I have wondered about just buying 30-day Bills. I don't like the TreasuryDirect user interface, though I use it for I-Bonds. Plus what if we had a real emergency just after buying some 30-day Bills? My wife would never, ever use TD. Schwab? I'd hate to have to remember to reinvest the proceeds. If you are a day late, you give up all the rate advantages.

Re: Max [maxmyinterest.com]

Posted: Sat Jul 14, 2018 9:03 am
by ochotona
Desert wrote:
Sat Jul 14, 2018 7:47 am
I agree with pug, it appears that Fidelity is the best platform right now for short treasuries, due to the auto-roll.

Would you buy 30 day or go out to a year, as Jhogue has suggested? That ~2.34% for 1 year looks good.

I'll probably stick with Vanguard Treasury MM at 1.84% for now, since I don't want to open another account right now.
I'm going to shut down Marcus. Indeed, no point in it. Fidelity set-up, funding underway.

Re: Max [maxmyinterest.com]

Posted: Mon Jul 16, 2018 12:01 pm
by jhogue
I like using Fidelity to buy and own T-bills directly. It completely avoids the manager risk associated with ETFs and mutual funds. Also, the expense ratio (0.00% !!!) simply cannot be beat.

When I first started buying T-bills, I wondered if Fidelity might be tempted to pump up the bid/ask spread to pay for this free service. As far as I can tell, that is not the case. I occasionally check the spread and have found that it hovers around 0.03% for a current 1 year T-bill.

I don’t know for sure, but I am guessing that Fidelity can make this deal available for small retail investors because they have to hold a massive amount of T-bills to support their many mutual funds and other investment products. Perhaps some demand is also be coming from their institutional investors for whom the FDIC cap of $250,000 makes CDs unsuitable.

Re: Max [maxmyinterest.com]

Posted: Mon Jul 16, 2018 12:52 pm
by ochotona
I can't wait! Big slug of dough coming out of Marcus to Fidelity. Maybe tomorrow.

Re: Max [maxmyinterest.com]

Posted: Mon Jul 16, 2018 2:06 pm
by ochotona
Fidelity posts the T-Bill offers after 2 pm Eastern on Thursdays. I bought some secondary market Bills today.

Re: Max [maxmyinterest.com]

Posted: Mon Nov 19, 2018 7:55 pm
by ochotona
Ally paying 2% now