Monday, January 21, 2008

Best Place to Park Cash

By the way, I've been looking around for a while now, and currently I think my best option for investing short-term cash is the ING Direct Electric Orange checking account. If you'll recall, when I first got the opportunity to open one of these accounts I declined , but later, I decided to go for it.I'm getting a 4.9% APY since my balance is at least $100,000 and I haven't seen any rates out there that beat it. I did recently sign up for an Emigrant Direct account because I know their rates have been higher than ING Direct's saving account rates at different times in the past. However, since I have so much cash right now (relatively speaking, for me), the rate ING offers me is better than my alternatives so I haven't put anything into Emigrant yet. When I do eventually buy a house, I won't qualify for the higher rate at ING Direct and I will have to evaluate which of the two make more sense for me at that time.

Anyone see anything that beats 4.9%? I've seen some CDs yielding a bit higher at some smaller online banks, but I'm not too interested in opening up a bunch of different accounts just to chase a tiny bit of yield.

1 comment:

Sean said...

I think the another competitve option would be TIPS (Treasury Inflation Protected Securities) available at TreasuryDirect.com 5-Year TIPS sold this month have a base rate of .45% plus inflation (the CPI-U). The CPI-U is running at 4% or so. There are exempt from state tax and can be resold on Treasury direct at any time for a $45 fee. Vanguard's state specific muni money market funds (e.g. NY, CA, others) are a good option if you're in a high income tax state and you're in a high bracket.