Gyroscopic Investing

Maxmyinterest.com will automatically move your cash between banks to optimize your interest and keep you within FDIC limits. They charge 0.02% for their service. Any thoughts?

Reub wrote: Maxmyinterest.com will automatically move your cash between banks to optimize your interest and keep you within FDIC limits. They charge 0.02% for their service. Any thoughts?

That's per quarter, for a total of .08% per year.

Interesting idea. I probably don't have a enough cash to mess with it, but I might if I had a lot.

This is one of those things that I think can be evaluated by using real numbers. Let's say you have $100,000 in cash they are moving around for you, and they are able to net you an extra .2% above what you can do on your own (after their expenses). That gets you an extra $200 per year. For me I'd rather know where my damn cash is! But that's just my .2 cents worth.

I think that they claim to get you an extra .7% on average. They also only seem to connect to a few banks so far.

barrett wrote: This is one of those things that I think can be evaluated by using real numbers. Let's say you have $100,000 in cash they are moving around for you, and they are able to net you an extra .2% above what you can do on your own (after their expenses). That gets you an extra $200 per year. For me I'd rather know where my damn cash is! But that's just my .2 cents worth.

They don't get you anything "above what you can do on your own" because its extremely simple to transfer money to your highest-rate account.  The best they can do is recognize interest rate changes faster.  They don't even open new accounts for you -- they use your existing accounts.

Maybe if you really want to "set it and forget it" this would be worth it.  I like to visit my money every once in a while anyways, so it doesn't help me much.

Realistically, the highest-yielding bank doesn't change very often.  It'll be Ally for a few years, then Capital One 360, for a year, etc.

barrett wrote: That gets you an extra $200 per year.

I made $700 last year in Cash Back with my Fidelity Amex card.

So here's an idea for some bright, young entrepreneur out there - how about a service called MaxMyCashBack?

Fred wrote:

barrett wrote: That gets you an extra $200 per year.

I made $700 last year in Cash Back with my Fidelity Amex card.

So here's an idea for some bright, young entrepreneur out there - how about a service called MaxMyCashBack?

Not the same, but http://techcrunch.com/2015/05/05/paribu ... ices-drop/

You can buy good CDs from a brokerage, because they will shop over the entire country to build their list of offerings. And, each CD from each banks carries its own $250,000 FDIC insurance. You don't have to open bizillion accounts all over the country. Just a brokerage account.