What to do with a payout

[heygrey]

Are there any HYSA with promotional rates that are closer to the CD? I was looking at options to park some cash in August and there were some good 3 month promo rates if I opened a new account. I would be hesitant to tie up the money in a CD.

[mainelyfoolish]

Do you anticipate needing the full amount of what you’re putting aside at the 6 (or 9) month mark, or do you think you’d need it in portions over several months? If you put the money in a CD, you have to remove it all at once, so you’d be earning no interest or going back to a HYSA after the CD term is up if you aren’t using all the money immediately. I’m not sure the difference between the two options will result in a significantly different result, depending of course on how high the real numbers are.

If you do go for a CD, open one with no early withdrawal penalty. I have no experience or relationship with this bank, but a quick internet search gave me Marcus by Goldman Sachs offering 7, 11, or 13 month no-penalty CDs at 4.5% APY.

[midwestmama]

I would go for the CD only if you are 99.9% sure you won't need to take an early withdrawal. If there's even a small chance you might need it, I would plan to put the $ in a HYSA.

[brooke77]

I would look into a HYSA. Check out all the promotions. Some have pretty good rates and promotions where you get extra money if you deposit $xxx amount within the first 60 days.

[sadlebred]

Well, so much for keeping up with inflation in a HYSA. The Fed cut rates by half a percent. That's a huge drop.

[sadlebred]

*poof*

[sparty04]

When I checked a few days ago, my capital one 360 savings rate was pretty much the same as a cd with them. Kicking myself for not opening a cd a few months ago

[chpmnk1015]

TD bank was doing a 6 month CD at 5%.. we have a few staggered.. even if you only did some in there..