Parking temporary cash safely and earning higher interest

We typically carry significant cash in our checking account. The banks are still offering only 0.1% on these balance. I am planning to move these sums to treasury and buy bills, which provides significant safety and as high as 4.75% rate. For those, who want quick access to their money can choose 7 day bills, they offer 4.5%.

IBKR pays a much higher rates closer to 4%. Initially I thought of moving the money to IBKR, but instead opted to move it to Treasury, given the higher safety.

@Kingran - You may want to consider Ally Bank. I have been using them for a number of years now. They have the best rates, are FDIC insured, you can do banking with them on-line and through their app, and transferring funds from one account to another is generally free (up to x number of transactions / month).

I recommend that you check them out for parking cash that you want to be safe and readily accessible.


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Thanks. Still treasuries give you slightly higher yield and more importantly I can go much higher balance.

We purchased 52 week bill on today’s auction for $95.15172 for $100 par and resulting yield is 5.095%. Compare that to .01% A simple change means you earn 10’s of thousands in interest.


You can mark the beginning of deposit flights to this post. I am one month ahead of deposit flight started around March 1st.

h/t Jim Bianco:

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