The Highest Yielding Cash Products

Many of us including myself have decided to raise cash during these volatile markets. I have put together a few pointers for the best cash management:

• Spread your money around
  • It's safe to put up to $100,000 in a single FDIC-insured bank account. To protect yourself, spread your cash around several institutions, not all of which need be banks. Many people learned his the hard way from the collapse of IndyMac.

• Use short term CDs
  • Keep CD maturities short so you can roll it over at a better rate, when the Federal Reserve raises short term interest rates. These rates are likely to start heading higher by year's end as the Fed is now becoming increasingly concerned about rising inflation and the falling dollar.

• Use an online bank as these FDIC insured accounts still pay above average CD and savings rates.

Using these tips I have searched for the best yielding short term CDs and savings rates, which are shown below.

Remember that in the short term, cash can indeed be king. But in the long term, cash is almost sure to lose purchasing power because of inflation.

Comments

[Chuck Kasparov:]

E-Trade is also pretty nice. Their savings account is 3.30%. What I like is that I can swiftly move everything to my eTrade brokerage account and then use the cash to instantly trade. When waiting on the sidelines I can then move everything instantly back to my savings account.

Disclosure: I have an eTrade account.

2008 Jul 30 06:12 AM

[corrado:]

I confirm what Netcash said on E*Trade, very valuable especially if you are a non resident alien .... i won't say why but those who are have certainly a big smile on their faces while reading this...

Corrado
littlegiftideas.com
Great brands - up to 80% off retail

2008 Jul 30 06:43 AM

[ubsmsgs:]

Come on, Corrado, let the rest of us in on it.....Maybe we'll choose to become alien!

2008 Jul 30 10:12 AM

[balor123:]

This is one area where stagflation sucks - virtually no matter where you keep your money it loses purchasing power and the only safe places are those that don't appreciate over the long term, bubbles aside.

That aside, there is no mention of high-yield checking accounts. I have one that is yielding 5.01% currently and there are some in this country yielding up to 7%! You have to be very diligent in meeting these requirements and spread your money around several banks to maximize return, but for a few thousand dollars a year, isn't it worth the trouble?

Aug 27 12:32 PM