The Lowdown on High Yield Savings and High Yield CDs.
I just had a reminder this morning why I invest as much as I safely can in stocks.
We will probably need to use a certain portion of our savings in 2 to 4 years for some upcoming costs. I believe that $13,000 we've put aside is making about .10% APY in our regular savings at Carolina First--pathetic! (Carolina First was recently purchased by TD Ameritrade.) We could make 1.10% if we kept $10,000 minimum balance in a high yield account with that bank, but I want more flexibility than that. Whatever I do needs to be FDIC insured so the principal will not be lost.
I have a high yield acct with Schwab that requires no minimum but gives .55% APY so that sounds like a better option, but still shockingly low for a yield. I'm considering Schwab CD's which have no extra fees and are FDIC insured, but I don't even start to see a .85% APR unless I get a 2 year CD which doesn't appear to reinvest interest or compound it. Evidently APY and APR are not the same.
Does anyone know of a better high yield than I've found that doesn't require a $10,000 minimum that is FDIC insured? Even a $5000 minimum would be okay.
If it weren't for my desire to have this portion of our savings have zero volatility, I think could make a better return buying undervalued, improperly indentified Depression Glassware and reselling it on e-Bay with proper provenance and pricing closer to actual value.
My husband's first savings account gave him 5.95% interest. Any indication on whether interest rates will rise anytime soon?