More Options For Money Growth

credit8502020 · ‎02-05-2021

Hi All,

I'm aware of HYSAs that are at DCU (6.17%), Service CU (5% & 3%), but am looking for more alternatives with rates as high as or close to these percentages. Many of the accounts are at at or lower than 1%. I need other places to place funds.

I'm considering no penalty CDs and high dividend stocks as well so if you have great experience with and advice regarding these, please chime in.

Thanks!

Anonymous · ‎02-05-2021

@credit8502020 wrote:
Hi All,

I'm aware of HYSAs that are at DCU (6.17%), Service CU (5% & 3%), but am looking for more alternatives with rates as high as or close to these percentages. Many of the accounts are at at or lower than 1%. I need other places to place funds.

I'm considering no penalty CDs and high dividend stocks as well so if you have great experience with and advice regarding these, please chime in.

Thanks!

I guess it depends how much work you want to put in. Currently I am putting a lot of funds into Paramount Bank checking, which pays only 0.85% but with no maximum balance, so convenience over great rates on small amounts!

FICOlearner123 · ‎02-05-2021

@Anonymous any idea how long .85 rate has been on offer, thats a pretty high rate I have seen for checking account

Goal Cards

Anonymous · ‎02-05-2021

@FICOlearner123 wrote:
@Anonymous any idea how long .85 rate has been on offer, thats a pretty high rate I have seen for checking account

No, I started recently. Somewhere I saw that a long time ago it was 1.75% and has got reduced as rates went down. Maybe 0.85% since Nov?

credit8502020 · ‎02-05-2021

@Anonymous wrote:
@credit8502020 wrote:
Hi All,

I'm aware of HYSAs that are at DCU (6.17%), Service CU (5% & 3%), but am looking for more alternatives with rates as high as or close to these percentages. Many of the accounts are at at or lower than 1%. I need other places to place funds.

I'm considering no penalty CDs and high dividend stocks as well so if you have great experience with and advice regarding these, please chime in.

Thanks!
I guess it depends how much work you want to put in. Currently I am putting a lot of funds into Paramount Bank checking, which pays only 0.85% but with no maximum balance, so convenience over great rates on small amounts!

@Anonymous Thank you for your feedback. How do you like Paramount Bank overall? Interface? Ease of transferring funds in and out of the account, etc. Also, did you open the account online?

Anonymous · ‎02-06-2021

@credit8502020 wrote:
@Anonymous Thank you for your feedback. How do you like Paramount Bank overall? Interface? Ease of transferring funds in and out of the account, etc. Also, did you open the account online?

The good thing is the rate! The interface is certainly nothing special, a very basic website, but it does what is needed. The ACH limits for stuff initiated there are low, but no problem ACHing large amounts in and out starting from another bank.

I opened it online, the major negative is that will send your account number only via US mail, so you have to wait for that (that mail also includes signature cards for you to sign).

One nice feature I haven't seen on other banks is that it shows the accrued interest being earned daily, before it posts to the account. So not actually that useful, but interesting.

credit8502020 · ‎02-06-2021

@Anonymous wrote:
@credit8502020 wrote:
@Anonymous Thank you for your feedback. How do you like Paramount Bank overall? Interface? Ease of transferring funds in and out of the account, etc. Also, did you open the account online?
The good thing is the rate! The interface is certainly nothing special, a very basic website, but it does what is needed. The ACH limits for stuff initiated there are low, but no problem ACHing large amounts in and out starting from another bank.

I opened it online, the major negative is that will send your account number only via US mail, so you have to wait for that (that mail also includes signature cards for you to sign).

One nice feature I haven't seen on other banks is that it shows the accrued interest being earned daily, before it posts to the account. So not actually that useful, but interesting.

@Anonymous Thank you for sharing those specific details.

iced · ‎02-08-2021

@credit8502020 wrote:
Hi All,

I'm aware of HYSAs that are at DCU (6.17%), Service CU (5% & 3%), but am looking for more alternatives with rates as high as or close to these percentages. Many of the accounts are at at or lower than 1%. I need other places to place funds.

I'm considering no penalty CDs and high dividend stocks as well so if you have great experience with and advice regarding these, please chime in.

Thanks!

You mention dividend stocks so my guess is you're looking for income rather than growth.

All income-generating cash I want to store goes into dividend stocks, paying between 3-10% depending on the individual stock. The REIT stocks I'm in pay a higher dividend (8-10%) but are taxed at income rates. My non-REIT positions only pay 3-7% but benefit from long-term capital gains tax treatment. I've been using this approach for several years and built up positions to the point I'm generating 5 figures a year in dividend income.

By comparison, my interest income fell from over $1,000 in 2019 to under $400 in 2020 due to interest rates being slashed (and it's taxed at income, but shrug on such small amounts). There's just not much blood to squeeze out of those stones without jumping through annoying hoops, conditions, and limits to get some of the HYSA rates.

credit8502020 · ‎02-08-2021

@iced wrote:
@credit8502020 wrote:
Hi All,

I'm aware of HYSAs that are at DCU (6.17%), Service CU (5% & 3%), but am looking for more alternatives with rates as high as or close to these percentages. Many of the accounts are at at or lower than 1%. I need other places to place funds.

I'm considering no penalty CDs and high dividend stocks as well so if you have great experience with and advice regarding these, please chime in.

Thanks!
You mention dividend stocks so my guess is you're looking for income rather than growth.

All income-generating cash I want to store goes into dividend stocks, paying between 3-10% depending on the individual stock. The REIT stocks I'm in pay a higher dividend (8-10%) but are taxed at income rates. My non-REIT positions only pay 3-7% but benefit from long-term capital gains tax treatment. I've been using this approach for several years and built up positions to the point I'm generating 5 figures a year in dividend income.

By comparison, my interest income fell from over $1,000 in 2019 to under $400 in 2020 due to interest rates being slashed (and it's taxed at income, but shrug on such small amounts). There's just not much blood to squeeze out of those stones without jumping through annoying hoops, conditions, and limits to get some of the HYSA rates.

@iced Thank you for your feedback! I'm really glad you talked about REITs being taxed at income rates, capital gains, etc. I'm in the middle of learning more about the tax details of REITs vs other dividend stocks.

A few questions:

What's your strategy for determining how much you will invest in REITs vs other dividend stocks?

By non-REIT positions, are you referring to regular dividend stocks?

Also area there any resources that you use or would suggest that help identify the REIT & dividend stock strategies, etc.?

Thanks again! I'm looking forward to investing funds in REITs and dividend stocks and want to make sure I'm ready to do it in the most effective way possible.

bigfoot98 · ‎02-08-2021

For savings I use:

Service

DCU

Affinity FCU

PenFed

Alliant (ACH hub)

Investments

Vanguard mutual funds (retirement) VWUSX VMGRX VWIGX and probably the index funds soon

Fidelity mutual funds (taxable and retirement), they also seem to have a deal with Morgan Stanley to waive the load on class a shares so I may go in on CPOAX MSSMX and MSEGX but I am still looking into it. I am also starting to buy some dividend stocks here as well

Webull, all stocks mainly dividend but some startups as well