Dan Rodgers’ Post

Your bank doesn’t want you to know this, but you need to! You can thank me later. 😉 You can earn higher interest on the money in your savings account, similar to an FD. Sounds fake, right? But it’s true. Here’s how it works: 👍 Just activate the Sweep-in facility on your account. With Sweep-in, you set a minimum balance limit for your savings account. When your balance exceeds this limit, the extra money automatically goes into an FD, earning a higher interest rate. You might think, “I can just get an FD myself.” But here’s the advantage: you can withdraw money from this FD anytime without extra cost. And you’ll still earn interest for the time the money was in the FD. This means: 💰 Your money stays liquid in your savings account. 💰 You earn higher FD interest rates. 💰 No need to manually transfer money. 💰 Withdrawal penalties, if any, apply only to the withdrawn amount, not the whole FD. And with the extra interest you earn? Maybe an exotic trip? Or 𝐞𝐧𝐫𝐨𝐥𝐥 𝐢𝐧 𝐦𝐲 𝐮𝐩𝐜𝐨𝐦𝐢𝐧𝐠 𝐏𝐨𝐰𝐞𝐫 𝐁𝐈 𝐜𝐨𝐮𝐫𝐬𝐞. P.S. – Have you turned on the Sweep-in facility yet? #finance #money

Putting money into a certificate of deposit (CD) takes a little more thought than simply depositing it into a savings account. This piece looks at the differences between short and long term CDs.

Money market accounts combine the earning power of high-yield savings accounts with the convenience of checking accounts. Here are the best MMAs earning over 5.00% APY right now. Via Forbes Advisor 9 Best Money Market Accounts of March 2024: Up To 5.48% – Forbes Advisor

I thought this article was interesting. In a nutshell, When rates first started to rise, customers moved their cash to new institutions that offered higher yields for their cash balances. They assumed, as rates continued to rise, that this new institution would continue to match these higher rates. Well, that wasn't always the case! If you are in Treasury, and you want to see if you are getting the best yields available for your cash balances, you can message me directly or speak with someone on our team, without any sales pressure. https://lnkd.in/enW2Qm8

Make the most of your money by choosing the savings option that’s best for you! Not sure how to grow your funds? Consider a Money Market account or Certificate. What is a Money Market account? A Money Market account, offered by banks and credit unions, is a type of account that tends to pay you higher interest rates than other types of savings accounts. While Money Market accounts may require a minimum amount to be deposited, they offer tiered interest rates that help you earn more as you save more. Plus, they’re insured by the NCUA. What is a Certificate? A Certificate, offered by banks and credit unions, allows you to place funds in an account for a predetermined amount of time. The longer your certificate term is, typically you can expect a higher rate of return. Certificates are federally insured by the NCUA and offer terms from 3 months to several years. Additionally, Certificates come in a variety of types including Standard, Bump Rate, Add-Ons, and Jumbo Certificates. Learn more about the benefits of Money Market accounts and Certificates at https://bit.ly/3VC9Lb8.

#Savings #Finance #InterestRates #NoticeAccounts Hey everyone! Let's chat about notice savings accounts. You know, the ones that require you to give a heads-up before withdrawing your funds? 🤔 I'm curious if anyone else feels the same concern I have: could savings end up being 'trapped' at low interest rates? Here's a scenario to consider: say I stash away $10,000 into a 90-day notice account with a nice 5% interest rate. If my bank decides to slash that rate down to 1% but tells me 14 days in advance, I’m left with just 76 days where my hard-earned cash is stuck, earning a fraction of what I thought it would. 😩 So, is this a common pitfall? Are there people out there successfully using notice accounts for long-term savings? Here are some points to think about: Interest Rate Risks: If rates drop, you might feel like your money is handcuffed to a less favorable return. 📉 Withdrawal Notice Periods: The notice requirement can leave you scrambling if you want to take advantage of be... Could Your Savings Get Stuck in Low-Rate Notice Accounts? Answers: https://lnkd.in/gJyKR4Z6

I found this article particularly relevant as we recently worked with a client who switched banks, prompting us to update our treasury and cash management policies. As part of this process, we’re incorporating a strategy that includes using Money Market Funds (MMFs). For real estate clients who often handle significant deposits but need to maintain liquidity, I highly recommend considering MMFs. As the article highlights, MMFs are expected to remain competitive, with interest rates likely staying above 3% for some time. Even as rates gradually decline, MMFs should continue to offer attractive returns compared to other options like certificates of deposit (CDs) or Treasury notes, making them an excellent choice for short-term cash management. #realestate #finance #cashmanagement #treasury

There are a few differences between a Certificate of Deposit (CD) and a money market account. What are you planning to do with the money you're saving? If you can answer that question, choosing between a CD and money market account will follow naturally. https://bit.ly/4dp18Gq

If you don’t have a HYSA, you’re losing money. You’re losing money with your regular savings account, and you need to open an HYSA yesterday. Let me explain... But why an HYSA over your typical savings account? 🧐 1️⃣ Your typical savings account earns you just 0.06% at your local bank — literal pennies. 2️⃣ A high-yield savings account, on the other hand, can earn you SO MUCH MORE. The longer you wait to open up a high-yield savings account, the more money you lose. My recommended partner here: herfirst100k.com/tools [terms apply]

Did you know you can use a brokerage account a lot like a bank or high yield checking account? In the last few weeks I've transferred most of our cash out of credit unions and online savings accounts - and moved paycheck deposits and debits for credit card statements, mortgage, and utilities to a brokerage account. Why? Well... money market funds get largely the same or better interest returns as most high yield savings accounts... and they can have debit card, atm, free wires, etc BUT... ⚖️ If you live in a state with income tax, you can have that money market be made up of mostly treasury bills or similar... Which means that most of the interest you make won't be subject to state income tax ✅️ Why not just buy t-bills or a CD ladder or something? Because I want the fluidity of cash and I want simplicity. This is for our emergency fund and spending - not longer term asset diversification. Just an adjustment to save a bit on taxes. Obviously not financial advice and all that but thought some of y'all would find this intriguing. What else do yall do with "cash" 💸?