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Skittles_the_Unicorn t1_je7hfgi wrote

Keep in mind that T Bills are exempt from State and local income taxes.


JMMD7 t1_je7gu3y wrote

CD, HYSA or Bonds/Tbills. Whatever will give you the most for you money. You can find the rates for everything online. I find CD's to be easier, just break the money up into 250K chunks so it's covered under FDIC. You can also find banks that will do that for you.


satinkzo t1_je7hukj wrote

Ally no penalty cd would be my choice if I were making decision today. Open a joint account and it covers 500k at least.


nope-absolutely-not t1_je7xhvl wrote

Without knowing your income and state of residence, it's hard to answer this question with precision. My suggestion is to use a Tax-Equivalent Yield calculator to compare net yields from different instruments suited to your circumstances. A Treasury Bill may be more valuable if you're in a high income tax state compared to a CD, even if the APY on the CD is higher. Also in-state municipal bonds are potentially tax-free if that's an option.


Future-Telephone t1_je7vfqm wrote

I got lucky about three weeks ago with a 5.3% bond, but they're not paying as much now so CDs are the more profitably thing to buy right now since bonds are down.


Bad_DNA t1_je7ibd4 wrote

Nothing wrong with a series of CDs and a HYSA. Split it all up to keep individual accounts under $250k.


neverempty t1_je7t60m wrote

Read the fine print about what fees you might pay if you need the money before the CD expiration date. They will often take most of the earned interest and sometimes a fee on top of that. I learned this the hard way.


NWJames1 t1_je848w2 wrote

I agreed with comments that T bill are the safest and exempt from state and local income taxes. Note there will be US debt ceiling discussion some where in July and later. I really doubt US government will stop paying its debts (T bills and others), but we will just monitor the event at that time. If you decide put into CD or brokered CD, make sure to keep within $250K per bank. Even if a bank fails, FDIC is insured.


singh0501 t1_je84y0c wrote

If I have a joint bank account with my wife, is the FDIC insured for $500K?


NWJames1 t1_je85lc0 wrote

check with that bank for their CD. I think you need to make the CD is equal or less than $250K per bank


singh0501 t1_je9s48n wrote

It’s actually just a high yields saving account. But I will check


Hacimnosp t1_je876f0 wrote

I would recommend just putting it in a high yield savings account. You can add more at any time or with draw at anytime with no penalties. The rates are about the same as most 6 month CDs. Also once the CD date ends your often times asked to with draw or sign up for a new CD. If you with draw but are planning not using it all at once you start losing out on interest again. I’ve found this to be the best way to make hassle free, FDIC insured passive income that’s quickly accessible. I park my emergency fund here and extra money until I can a solid investing opportunity.


LuvIsMyReligion t1_je88lkv wrote

"The rates are about the same as most 6 month CDs" where if you don't mind sharing?


[deleted] t1_je89cwo wrote



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thefly21 t1_je8ckob wrote

Discover bank 6 month cd - 3.4%. Online savings - 3.6%

Of course, a 12 month cd is 4.5%, but the savings account makes more sense at 3.6 than a 6 month cd at 3.4. Also, rates for online savings can change ( you aren’t locked into your rate). Lately rates have been going up - if you open an online savings at 3.6, there is a good chance the rate will increase while your money is in it over the next few months (the way rates are currently)


CelticsWin7 t1_je7jv56 wrote

Fidelity offers a 6 month CD at 5.10% rate.

That's $22,950 in interest on $900,000 over 6 months.