Savings and Bank CD Strategies

Just curious, after reading thru the list of current "Best CD Rates", what is everyone else doing to maximize your savings interest earned?

Do you have your savings in long term CD's, laddered CD's, money market accounts, under the mattress, buried in the back yard??

What's your opinion of online banks such as Synchrony, Ally, etc that offer higher rates of return on their products?

Dave

That's an impossible question to answer without knowing your age and income level

Dave, as you already know, most online savings accounts don't pay much interest. I guess that your objective is to have a savings account that is rapidly/easily accessible while also having your money earn some interest. I have had an Ally online saving account for many years now that I have been perfectly satisfied with. I believe that the interest earned is competitive for this type of account. I will occasionally shift money out of this account and into my checking for purchases etc. and it is really quite easy to do. Although it does take a couple business days for the transfer to occur. The problem with wanting maximum interest is that this comes at the expense of either risk of losing money, or the loss of flexibility and ease of accessibility (CD's etc.). The situation that works best for me:
-Have some cash on hand(mattress money).
-Online savings account which can be accessed within a few days and is earning a little interest
-Other monies in long term savings (retirement, 401k IRA)
Another option for emergency only money would be to utilize a Roth IRA with low cost index funds. this would give you opportunity for good returns (not without risk though) and if you had need for the money in a financial emergency you could withdraw from your principal contributions without penalty.
Sorry for being so longwinded and I guess it really depends on your needs and priorities.
JT

Regular savings/money market account is currently paying .60 or less. My curiosity was sparked when I saw the online banks (ex. Synchrony) are paying 2.0% on long term (48 mo) CD's. I would be willing to give up some access to get the much higher rate, but the thought of sending money off to places unknown/unseen makes me very nervous.

Keep our 3-6 month emergency fund in a premium money market account, same bank that has our mortgage. Our additional savings, which I deem as long-term, is currently structured in a 1-yr laddered CD. With the Fed slowly increasing interest rates, the experts say you do not want to be tied up in long-term CD's right now, because CD's will pay out better rates as the interest rates keep going up.

I keep a savings account/emergency fund in a dividend paying mutual fund. I have had it since 98 or so, it has never gone up/down a dollar for the stock price. But it pays me a nice dividend each month. Price range in the $3.50-4.50 range. It does take me a day or two to get what I need , but that helps them impulse buys also. However I can't tell what the % rate would be,I have been happy with it.

Check out muni bonds...Stock ticker MVF, pays 5.5% tax free on dividends. pretty safe bet.

Tell me more of this sticker MVF. I have several minis and 5.5% is a very good rate.

Way too little a return to mess with.

You can set up Synchrony savings and cd accounts easy on line and maybe one call. I don't remember what they pay but it's lots better than mm accounts in Fidelity and Vanguard.
You might want to look at MYGA accounts instead of CD's. Pays more and is basically the same thing long as you don't need the money early.