Best place to park cash

20 Replies

Our current Citibank pays 0.12% interest on savings in the money market savings account.

Time to move cash out of that bank.

Where do you think is the best place to park cash and earn more %.      100K  for about 1 year.

I'm getting 1.65% with American Express High Yield Savings.

My only regret is not moving my cash from BoA much sooner.

I use capital one and get paid like .2 percent. Lol. I just use it for convenience. The money isn’t in there long enough for it to matter really

Originally posted by @Justin Fox :

@Kevin Coggins

Was that an intro rate?  Or a rate from a previous bank they took over and still honor?  I only found .05% on their site.


 It wasn't an intro rate, I was actually at 1.15% and noticed their rates bumped up so I asked their customer support and they adjusted my rate to 1.85%. I see what you're saying though, that's odd on their website it shows it like that. If you search "Salem Five Direct", you will be able to get the 1.85% rate (my login is just on Salem Five).

Anything I don't plan on using the near future, I just throw into Index Funds.

@John Paul I would suggest looking into online bank savings accounts (I prefer Synchrony and Ally).  Being in a rising interest rate environment (they just raised rates again yesterday and forecast 2 more this year) it's generally not the best idea to tie cash up in CD's.  Also, the online banks are generally the first to increase their rates after the Fed announces.

 If you plan to need the money in a year, and wan't to make sure it's there, an online savings account yielding close to 2% seems like a good plan.


@John Paul - @Steve Bracero gives great advice. Index funds or a robo advisor such as Betterment or WealthFront. 

This is assuming that you are not an active investor. If you want to be a bit a more active, then I would suggest real estate (obviously) or maybe doing some private money lending. You'll likely get a higher return that way. 

@John Paul for a year, move the cash to a high yield savings account, money market account, or high grade bond fund (I use GNMA). Those are roughly in risk/reward order from lowest to highest, though they will all give you some hedge against inflation.

Since you want to use the cash for another investment, chasing yield in an index fund is madness. Far to much volatility; the risk adjusted returns just aren't worth it.