Pay attention to your cash accounts

[QuarterMillionMan]

When I say to make sure your cash is working for you, I don't necessarily mean investing it in stocks. Just moving it from an account paying 0.1% or0.45% to an account earning 5+% is a significant improvement. Or buy a CD or bond to lock in rates while they're still high. The Fed has said they expect to start lowering rates later this year. If you don't anticipate needing the cash, buying a 1 year or 2 or 3 year CD/Bond paying around 5% is going to look pretty sweet 6-9 months from now.

1 - 3 years is a long time. But yes 5% is nice. At any rate my $26,000 in cash at Merrill is in a Roth IRA so I cannot pull it out. I will wait for the next crash and buy at a discount let's say NVDA or TSLA.

[jenn_jenn]

Great reminder!

Just last week I finally invested our HSA account. Had it sitting in cash up until now since we’d never treated it like an investment/retirement account before.

I was doing our taxes today and, when collecting all our online tax forms. was embarrassed to realize we had $4k in one of our Fidelity accounts just sitting there in cash. Not a lot of money, and was earning 2.X% in interest, so could have been worse, but I just felt so unorganized to have unaccounted for $4k of cash. Left it sitting for now but might transfer over to our HYSA account.

We recently reduced our emergency fund and so in my head this just felt like a little extra padding.

[Jluke]

CapitalOne just lowered their rate on the performance account from 4.35 to 4.25.

[disneysteve]

CapitalOne just lowered their rate on the performance account from 4.35 to 4.25.

Interesting. I wonder what prompted that. The latest inflation data has people thinking the Fed won’t start dropping rates as soon as anticipated so why would CapOne make that move now?

[QuarterMillionMan]

I noticed that I'm low on cash on hand (about $1500) so transferred $5000 back into Chase which I'll need to go in-person to get it. I wish they could FedEx overnight like when I buy foreign currencies from them. Initiate it online, they take the money out, next day I get a knock on my door with an Express envelope with the money. Under $1000 the fee is $20 but over $1000 free which I would get for the free shipping.

[disneysteve]

I noticed that I'm low on cash on hand (about $1500) so transferred $5000 back into Chase which I'll need to go in-person to get it. I wish they could FedEx overnight like when I buy foreign currencies from them. Initiate it online, they take the money out, next day I get a knock on my door with an Express envelope with the money. Under $1000 the fee is $20 but over $1000 free which I would get for the free shipping.

That would be cool. I don't mind driving through an ATM now and then when I need cash but it's a pain when I need to go into the branch because I need small bills. I try and only do that 2 or 3 times a year.

[QuarterMillionMan]

Yup since I have to go inside I’ll write on a piece of paper something like this $500 in single $1 bills, $500 in $5 bills, $1000 in $10 bills, $1000 in $20 bills, $1000 in $50 bills, and $1000 in $100 bills.

[disneysteve]

Yup since I have to go inside I’ll write on a piece of paper something like this $500 in single $1 bills, $500 in $5 bills, $1000 in $10 bills, $1000 in $20 bills, $1000 in $50 bills, and $1000 in $100 bills.

Do you wear a ski mask when you go in and pass that note to the teller?

[QuarterMillionMan]

Funny, I get that sense that as soon as the teller sees that note her foot is on the alert button. But as she reads it relaxes her foot.

[LivingAlmostLarge]

I struggle that captial one doesn't pay enough either on our all cash sitting there. But I add $1k a month to property taxes and $1k to sink funds. And then it gets tapped every 6 months or something and then it gets built up. And the little cash emergency flow fund. So i do try to run lean but I don't know how to run leaner.

[QuarterMillionMan]

This is Wells Fargos foreign' currency cash ordering policy where you can order online and have it delivered to yourself.

Wells Fargo account holders can order foreign currency cash online, at a branch, or at 1-800-626-9430 and have delivery within 2-7 business days.

We do not buy back all currencies, and buy-back rates differ from rates for ordering cash. We do not buy back coins. Foreign currency cash is intended for travel-related purposes only. Wells Fargo does not recommend foreign currency cash as an investment product.

[srblanco7]

CapitalOne just lowered their rate on the performance account from 4.35 to 4.25.

I think Ally just took it a step further from 4.25% to 4.2%. I can not fathom why as it seems interest rates will remain higher for longer based on recent inflation data.

[disneysteve]

I think Ally just took it a step further from 4.25% to 4.2%. I can not fathom why as it seems interest rates will remain higher for longer based on recent inflation data.

I wonder why places are already lowering rates when the Fed hasn’t changed anything yet. I guess they’re expecting a rate cut soon and want to stay ahead of it. Oh well. Vanguard is still at 5.27%.