High interest rates were nice while they lasted

[disneysteve]

i should probably move our cash out of our capital one money markets earning 4.25% but it's hard to tie it up when it's sink funds and taxes fund and stuff I see myself spending in 6 months. It's where i park our property taxes paid out every 6 months or auto insurance and life insurance once a year.

The Vanguard settlement fund is paying 5.27%. You can move money in and out of that just the same as with your Cap One account. I just took 5K out of ours the other day.

Really no reason to use a high yield savings account now with the brokerage money markets paying 1% more.

[MonkeyMama]

The Vanguard settlement fund is paying 5.27%. You can move money in and out of that just the same as with your Cap One account. I just took 5K out of ours the other day.

Really no reason to use a high yield savings account now with the brokerage money markets paying 1% more.

Agreed. We are using our Vanguard cash to pay my son's rent right now. We take the money out every month. Heck, the money usually shows up in our checking account the same day when I transfer. It is not 'tied up'.

[skives]

Can someone help me understand how to read this from Fidelity? These are secondary agency bonds available from Fidelity. What is the interest rate and can they be sold if I want out of them?

[LivingAlmostLarge]

I don't have a vanguard account. What is the settlement fund for Schwab? I find everything takes so long to move around

[LivingAlmostLarge]

I also really like dumping $1k into sink and property tax each month

[disneysteve]

Can someone help me understand how to read this from Fidelity? These are secondary agency bonds available from Fidelity. What is the interest rate and can they be sold if I want out of them?

Without getting into every bit of detail, which honestly I don't fully understand myself, here's a quick summary.

Look at the first bond. Description tells you what it is and who issued it. Coupon is what the rate was at the time of issue. Maturity date obviously is when the bond matures. Next call date only applies if the bond is callable, which this one isn't. Then you have the ratings from Moody's and S&P. Bid and Ask I can't fully explain but the rate you want to pay attention to is Yield to Worst (YTW) as that's the lowest rate you can earn if you hold the bond until maturity. In this case, since the bond isn't callable, YTW is the same as YTM (Yield to Maturity). The Ask column also shows the price ($82.159 per $100 of bonds) meaning you'd pay $821.59 for a $1,000 bond as they are sold in $1,000 increments. At maturity, you'd get $1,000 with the difference being your earnings. Looks like there's a minimum purchase of 5 bonds or 5 x $821.59.

[skives]

Without getting into every bit of detail, which honestly I don't fully understand myself, here's a quick summary.

Look at the first bond. Description tells you what it is and who issued it. Coupon is what the rate was at the time of issue. Maturity date obviously is when the bond matures. Next call date only applies if the bond is callable, which this one isn't. Then you have the ratings from Moody's and S&P. Bid and Ask I can't fully explain but the rate you want to pay attention to is Yield to Worst (YTW) as that's the lowest rate you can earn if you hold the bond until maturity. In this case, since the bond isn't callable, YTW is the same as YTM (Yield to Maturity). The Ask column also shows the price ($82.159 per $100 of bonds) meaning you'd pay $821.59 for a $1,000 bond as they are sold in $1,000 increments. At maturity, you'd get $1,000 with the difference being your earnings. Looks like there's a minimum purchase of 5 bonds or 5 x $82.159.

Thanks

[disneysteve]

I don't have a vanguard account. What is the settlement fund for Schwab? I find everything takes so long to move around

Unlike Vanguard where the settlement fund pays 5.27%, the settlement fund at Schwab only pays 0.45% last time I checked. However, they do have a money market fund that is much better. SWVXX is paying 5.17% currently. Not quite as high as VG but still better than the 4.25% you're getting now.

[disneysteve]

Can someone help me understand how to read this from Fidelity? These are secondary agency bonds available from Fidelity. What is the interest rate and can they be sold if I want out of them?

I just noticed I didn't answer this part of your question. Yes, you can sell them but keep in mind that you may make or lose money on the transaction depending on what has happened to interest rates since your purchase.