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#21
04-06-2007, 11:03 AM
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Re: High Yield Savings accounts revisited
[ QUOTE ]
Assuming a 33% federal rate and a 9.3% CA tax rate you have an effective tax rate of 42.3%. [/ QUOTE ] Almost correct. The state taxes paid are deductible against your federal returns (again, subject to AMT limits), so at the 33% federal bracket, and 9.3% California bracket, the effective rate on 1099 interest income would be 39.1%. So the pre-tax equivalent rate of investing in the Vanguard California tax-free MMF would be 3.54% / [1-.39138] = 5.82%. Again, 5.82% is likely to be better than you can get at any online savings account. 
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#22
04-06-2007, 02:00 PM
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Re: High Yield Savings accounts revisited
I just read that Everbank is offering 6.01% for the first three months.
I don't know if its worthwhile chasing these teaser rates, since you probably lose some interest while your money is in transit between accounts.
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#23
04-06-2007, 06:45 PM
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Re: High Yield Savings accounts revisited
[ QUOTE ]
I just read that Everbank is offering 6.01% for the first three months. I don't know if its worthwhile chasing these teaser rates, since you probably lose some interest while your money is in transit between accounts. [/ QUOTE ] Well, at 6%, you're basically making .5%/mo. Transferring money from one e-savings account to another takes about a week. So if you kept it in the new account for the year, your effective rate would be more like 5.87% Of course, if you transfer every few months, 4 times per year, I suppose your effective APY would be like 5.45-5.50% instead of 6%. I'm in HSBC right now, and their standard rate is 5.05%, which goes into effect on May 1, so I'll probably chase another intro-rate.
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#25
04-07-2007, 12:23 AM
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Re: High Yield Savings accounts revisited
higher yield means higher risk. so always beware. though unlikely you will lose your money the risk is there. even in ones supposededly insured by the fed reserve. you may get your money if the bank fails but may take a long time and dont get interest whike you are waiting.
try emailing and getting results from an online bank if it gets in trouble. remember neteller. memories are short.
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#26
04-09-2007, 03:09 PM
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Re: High Yield Savings accounts revisited
[ QUOTE ]
higher yield means higher risk. so always beware. though unlikely you will lose your money the risk is there. even in ones supposededly insured by the fed reserve. you may get your money if the bank fails but may take a long time and dont get interest whike you are waiting. try emailing and getting results from an online bank if it gets in trouble. remember neteller. memories are short. [/ QUOTE ] HSA bank is so big. I would say its safer than putting our $ in a local B&M Bank.
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#27
04-13-2007, 09:48 PM
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Re: High Yield Savings accounts revisited
[ QUOTE ]
[ QUOTE ] higher yield means higher risk. so always beware. though unlikely you will lose your money the risk is there. even in ones supposededly insured by the fed reserve. you may get your money if the bank fails but may take a long time and dont get interest whike you are waiting. try emailing and getting results from an online bank if it gets in trouble. remember neteller. memories are short. [/ QUOTE ] HSA bank is so big. I would say its safer than putting our $ in a local B&M Bank. [/ QUOTE ] What's HSA Bank? HSBC?
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