High Interest rates for savings accounts
We have over $100,000 in a bank savings account that pays virtually nothing for interest. We rarely touch this money and want to know where we could invest it for a better interest rate. I heard you on WGN9 recently talking about Govt I-bonds. Are they safe, stable and money could be removed in an emergency without much penalty??
Terry Says
Read these two articles. Only $10,000 each can be invested in Ibonds per year, but you can certainly invest all the rest in 3 or 6 month Treasury bills. The latter are now yielding more than 4% for 6 months!
https://www.terrysavage.com/i-bonds-everything-you-must-know/
https://www.terrysavage.com/t-bills-beat-cds/
Just keep enough in the bank for immediate emergencies. Stagger your purchase of T-bills so they are coming du on a monthly basis and that should be enough liquidity since you aren’t planning any special use for the money. Enjoy the higher yields that banks are cheating their depositors out of!!
