High Yield Savings Account

[Anonymalous]

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@Citylights18 wrote:

I guess the question is do you have money parked at a brokerage account?

If you do and can earn 5% there I'd do that over treasuries. Then a good buying opportunity appears on a stock that you want you're poised to take direct advantage of it.

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With brokerages, watch out for the base position. For instance, Fidelity will put any money I don't have invested in SPAXX, which isn't bad. But Schwab will just let the cash sit there, unless you manually buy into SNVXX or something. Which isn't hard, but it is another step. But yes, having the money already in your investment account, whether in cash or a close equivalent, makes it a lot easier to invest opportunitistically. Though the academic literature is very clear that that investing now is better than tomorrow. So while I do it too, it's a wiser move to just invest in accordance with my assest allocation plan as soon as the money is available.

[oorhett]

I use Fidelity Money market (SPAXX) already mentioned it is currently at about 5% I also use UFB 5.25% (Division of AXOS) which was already mentioned. You may want to consider taking advantage of Checking or Saving account Sign Up Bonuses (SUBs) US Bank currently has an $800 bonus, PNC has a $400 Bonus, Sofi and Axos both have $300. I am sure there are others, I heard Chase currently has one up to $1000 but can't find it anywhere maybe invite only. 

[Anonymalous]

Speaking of bonuses, brokerage bonuses may also be worth a look. The big dollar amounts that get advertised -- like $2000 -- typically require a huge amount of cash to be moved over, so the APR earned is pretty marginal. Which is fine if you were planning on moving a retirement account over anyway, but I don't think it's worth chasing. But Fidelity, Schwab, and occasional fintechs regularly run smaller bonuses ($100 or so) with very low deposit requirements (often $100 or less), which may be really attractive to people just starting to look into investing.

[rgninja]

I didn't realize I had additional responses to my question. I work for an investment company, so even though I am not involved in brokerage with the company, I am required to have my investment accounts at my employer, Merrill Lynch or Charles Schwab. I had someone try to open a fraudulent account at Charles Schwab a few years ago, so I would have to go into a branch to open an account with them. I did open an account with Merrill Lynch and purchased a few stocks to hold in the account.