Where to park down payment money to earn extra $ ?
#personalfinance Is Robinhood gold a safe place to park a $600k cash we are holding for a house down payment in the next 90 days? What other options do I have and what risks to keep in mind. Edit: it's tempting to not earn the 4.15 interest with just a click of the button ( I already have Robinhood gold with my checking account linked to it). I see they provide FDIC insurance in partner banks upto 1.5m so want to understand if there is any actual risk Tc: 580k at current stock price.
I don’t trust RH. I’d park in my E*Trade savings (3.5% APY) but there are others (Marcus).
Does E-trade is in broker account or how do you get the 3.5% ?
They have a high yield savings I believe anyone can open up. I also hold IRA accounts there and only recently noticed they give better rates for savings than my Marcus account did.
Sort term treasuries would be great for this.
Robinhood is an interesting choice. Have you considered Washington Mutual?
I believe betterment is offering 3.75 APY with up to 1m FDIC insured, I think they divide your money across multiple banks behind the scenes.
RobinHood Gold does the same thing with 4.15% APY.
You are right, I didn't know it FDIC insured more than 250k, thanks for the info
Is RH 4.25? I'm getting 4.15 rn. And yes I'm really tempted to add more money into RH, esp cause they're FDIC. I'm planning on keeping about $150k though
You are correct! My bad
Fidelity money market, SPAXX, is 3.96% currently
With an expense ratio of .42%, isn’t it similar to a HYSA now?
Yeah it’s similar to a savings account, but it’s for a brokerage account. This is what mine defaulted to for sweeping cash funds to. There might be better options, I’m open to tips.
VUSXX (vanguard Treasury money market), instead of rolling your own tbills
Amex HYSA is offering around 3.3%
TBills - no state tax on the gains.
Do you mean a etf of tbills? I thought it's difficult to purchase actual tbills and there is a limit of less than 100k per ssn ?
TBills limit is 10 million for individuals I think. Ibonds have a much less limit (10k per ssn). You want to buy from treasury direct or brokerages. Don’t buy ETFs that track treasuries they aren’t fixed income. For your purpose here, you want to make sure your base capital doesn’t erode so hence fixed income funds like TBills