High Yield Savings Account vs. Money Market Mutual Fund

Рет қаралды 66,967

Rob CPA | Personal Finance & Tax Planning

Күн бұрын

Пікірлер: 93

@TJDawgs72 4 ай бұрын

I just moved a considerable amount of cash (at least I consider it considerable) from a standard savings account I was earning only 0.1% APY from into a Money Market Prime account with a 4.75% APY. I'm gonna go from earning approximately $35 a year to earning about $2,400 a year...it's a no brainer! My only gripe is, I'm angry at myself for not doing this a few years back...missed out on a decent chunk of change. Thanks for the video...

@Nexus9 4 ай бұрын

Same boat, been banking with my regional bank(5/3) since I was born, got upto 60K in saving making not 1, not .1 but .01% int. Just sticking it in my schwab sweep account is making .5% interest. If only I did this sooner. :/

@innocentlife2346 18 күн бұрын

Don't feel bad I'm angry with myself as well, Had 7K sitting around in wells-fargo bank🏦🏧 for over 3 yrs, if not more. 😮a regular savings account, no dividends added on making any money 💰 back on what I invested 😮 I'm going tomorrow morning on withdrawing all my money on and closing the account I've been to Wells Fargo since 1995. I never even got any help from this bank, for any personal loans, car loans, never benefited anything from wells-fargo bank really 🤦to tell the truth. 🤦I mostly benefit more from my credit union. 🏌️🎤

@lennoxmutterick6434 11 күн бұрын

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

@Ingridlourd02 11 күн бұрын

Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks

@lennoxmutterick6434 11 күн бұрын

@@Ingridlourd02 However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.

@Ingridlourd02 11 күн бұрын

@@lennoxmutterick6434 Oh please I’d love that. Thanks!

@lennoxmutterick6434 11 күн бұрын

@@Ingridlourd02 Clementina Abate Russo is her name

@lennoxmutterick6434 11 күн бұрын

Lookup with her name on the webpage.

@christianndasilva1843 6 ай бұрын

You made way more sense to me than all the other people on KZfaq using dumb unnecessary editing and graphics. Thanks!

@rob_cpa 6 ай бұрын

Thank you very much.

@defendingthefaith.7889 4 ай бұрын

Capital one does not have a balance you have to keep in a high yield that pays 4.3 percent. Not penalty for withdrawals.

@innocentlife2346 18 күн бұрын

I learned more from Rob Cop, than the Customer Svc Rep at my bank 🏦 🏧 😔 she informed me that she wasn't really educated towards the money mutual accounts, IRA accounts.. I'm saying to myself like, what 🤦 Why are you even working at a bank institution, if you not educated on how all the different accounts works for customers... Smh

@takeshii Жыл бұрын

I'd still leave it in there even after they go back down because chances are they will still beat the 0.01% youd get at your regular bank.

@rob_cpa Жыл бұрын

Thank you for your response.

@grahamfinance Ай бұрын

Sofi has 4.6% with direct deposit into a checking or saving account with them. FDIC insured. No balance requirement

@rob_cpa 15 күн бұрын

That's really good! Recently, I've been seeing 5%+

@R26Roman 8 күн бұрын

Isn't sofi only insured by FDIC from the transfers that it makes not from the account itself?

@pcdihealth Ай бұрын

Thank you so much for sharing the information..

@CherylLouise 4 ай бұрын

There’s SIPC insurance for investment products

@luisgarabito8805 Жыл бұрын

CIT bank requires a balance of $5000 or more to qualify for that nice 5.05 percent APY but if you go below it goes to .25%

@rob_cpa 11 ай бұрын

Thank you for the clarrification.

@coffeegrindgossip 10 ай бұрын

Thank you so much for this information, and you're 👉 right, most people are scared to open a new bank account. I'm a former bank teller, I've seen it all.

@rob_cpa 10 ай бұрын

You're so welcome!

@dapetik 8 ай бұрын

Good video and thanks for the information. Needed to watch it in 2x the speed 🤣

@rob_cpa 7 ай бұрын

Glad it was helpful!

@draconian45 Жыл бұрын

Thank you. This was very helpful.

@rob_cpa Жыл бұрын

Glad it was helpful!

@Roy-xe9is Ай бұрын

If depositing money into a MMA today, and the FED cut rates twice this year as expected, what can I expect? Thank you for this channel. New subscriber.

@OffGridandOutdoors 3 ай бұрын

I think it depends on where your money is. If I've got uninvested cash in a brokerage account, I'm not moving it to A HYSA, I'm investing in a MM Fund. Conversely, the rest of my money is at Wealthfront cash. Wealthfront, whoot whoot, once And done.

@MrGus.1 24 күн бұрын

My Fidelity advisor just advised me to buy a single premium, 3 yr. annunity. The interest rate sounded pretty good. I thought it would fit into my portfolio "safety net" well, but then I found out he made a big fat commission on it. Was that a conflict of interests?

@razeenshepard 7 ай бұрын

Thank You for the information. It was exactly what I was looking for.

@rob_cpa 7 ай бұрын

Glad it was helpful!

@vikjhaveri109 7 ай бұрын

Thank you so much for this video! Is it better to open a high yield savings account or keep it uninvested in a brokerage account like Vanguard or Fidelity that also gives around 5% annual?

@Hayesboy96 7 ай бұрын

My only thought is whether that brokerage account is FDIC insured

@rob_cpa 7 ай бұрын

Good question. Agree with the response on the FDIC insured. If the rates are similar, keeping it in a brokerage account is fine, but you want to have a good balance of cash and investments - not too much in cash as you could earn a better return elsewhere.

@michaeldavis3188 Жыл бұрын

Why not go with the CIT High Yield? It's 5.05% and FDIC insured. The best from the money market mutual fund is 5.24 and is not FDIC insured. Why risk 100% to gain the additional .19%? Anyway, great content and video Rob!

@rob_cpa Жыл бұрын

Thank you for the response. CIT does have a nice rate. The banks are constantly increasing their interest savings rates, which is nice, but tough to keep up with videos.

@michaeldavis3188 Жыл бұрын

You da man, keep up the great content buddy!@@rob_cpa

@exgamer07 11 ай бұрын

The risk of a treasury money market is the same as FDIC. You are relying on the US government to pay its obligations. If the government cannot cover treasury bill obligations it most certainly is not covering your FDIC insurance claim either.

@michaeldavis3188 10 ай бұрын

One is FDIC insured, the other is not. Once a bank is FDIC insured it is a backing for your money. This makes it much safer up to 250,000.00. While money market funds aren't FDIC-insured, investments held in brokerage accounts (including money market funds) may be insured by SIPC. Unlike FDIC coverage, SIPC coverage doesn't insure the value of your investment-it protects you in the event your broker fails.

@exgamer07 10 ай бұрын

@@michaeldavis3188 Both covers your claim in the event your loss is due to institution fail. Neither covers due to market fluctuations. FDIC will not reimburse you for loss of purchasing power of cash due to inflation. SIPC will not simply cover your loss due to decline of security share price.

@lseh4720 11 ай бұрын

Where should LLC’s open bank accounts? Ally Bank doesn’t allow LLC’s. BofA requires $6,000 minimum daily balance. With 5 properties, they’re pretty much getting $30,000 of our money without paying us any interest. Recommendations for LLC’s?

@rob_cpa 10 ай бұрын

Check out Mercury Bank: mercury.com/ or Brex - they have higher interest rates for small businesses. You can also check out Oak Street Bank. Personally, I like Chase because of its ease of use, but you can always have two different banks for your business.

@andrewhack7698 17 күн бұрын

Good video thanks for the advise

@rob_cpa 15 күн бұрын

Any time!

@sherilyncortez1906 22 күн бұрын

Hi. Can I move money from a Traditional IRA to a Money Market Account without paying taxes?

@choski76 10 күн бұрын

Good question. I think you owe taxes for selling equities. Come back to the thread with your answer please

@kimr.9906 3 ай бұрын

I always got confused with MM accts. There are many types too. So what's the difference between MM mutual funds vs MM IRA acct?

@hiramngure8125 18 күн бұрын

I am a Kenyan but would like to invest in money market mutual funds. Is there a way I can do that?

@uaeio 3 ай бұрын

You didn’t address taxation of interest/dividends. Money market mutual fund by fidelity ,SPAAX, calls its interest a dividend, but it is not qualified dividend… very misleading

@dawnsmith370 9 ай бұрын

So I am new to this. So for example an SPAXX, are you reported and taxed on dividends if you select to have them reinvested? I currently have a high yield savings paying 4% but wanting to move over to fidelity to either cd’s , money market or mutual funds to earn a better return. I am also in the middle of transferring my Wells Fargo ira in which I am paying them $300 plus per month to do nothing over to fidelity and maybe putting that in mutual funds. So many options for someone raw

@asphaltandtacos 4 ай бұрын

You will pay taxes regardless of what you choose to do with the dividends.

@user-fz9sd4gl9v 9 ай бұрын

a money market mutual fund account has an exp ratio which will eat into the returns

@AnthonyLopez-di5vv 5 ай бұрын

Depending on where you look, the yield already factors in exp ratio. That’s how fidelity does it

@moki888 4 ай бұрын

I have been angsting over how to move my savings account from low interest rate bank for over a year now. Is Zelle safe? Cash app? Or do I need to wire transfer, which is pretty expensive way to go IMO.

@rgrobinsonxoxo Ай бұрын

I’ve never had issues with zelle and it’s how I transfer my money between banks , I’d opt for that over cash app if it’s a large sum of money imo

@TheMachomaniac 4 ай бұрын

I put 16 grand in a mutual fund at Fidelity 8 years ago and today its around 21 grand. I just learned about HYSA. Should I leave that cash where it is or move it to a HSYA?

@johny3133 3 ай бұрын

What is a % of taxes you paid each year for these account?

@WallStreetIceCream 6 ай бұрын

have any recomedations for money market account?

@rob_cpa 6 ай бұрын

Here is a side by side comparison: www.forbes.com/advisor/l/high-yield-savings-accounts/?gad_source=1&gclid=CjwKCAiA_OetBhAtEiwAPTeQZylQ-kgGSju48VMBnINkvVqOETUavnbZ2iHWWM8CG0jciF3qe0qGyBoCO4oQAvD_BwE&gclsrc=aw.ds

@dejiakinbode5715 6 ай бұрын

Great content

@johny3133 3 ай бұрын

You forgot to mention taxes on these accounts they all different

@Toke-YT 4 ай бұрын

So my high yield savings account has 5% interest rate so monthly interest would be .41% every month, yes… so with the money market mutual, which seven day run is 4.7% , is that 4.7% monthly, or is that over the year?

@justjoe732 2 ай бұрын

over the year

@20891 9 ай бұрын

Thanks so much

@rob_cpa 9 ай бұрын

You're welcome!

@Floyd_Steel 3 ай бұрын

Do you have to pay tax on a HYSA like you have to on a MMMF

@I_Died_2_Weeks_Ago 2 ай бұрын

Federal, yes, but MMA may have tax benefits depending on the percentage of government bonds the account holds and the state you live in.

@dabig_guy2204 7 ай бұрын

Money accounts

@lalagummybearcarrot 8 ай бұрын

What about factoring expense ratio of money market. If its like .5 do you deduct it from 5 percent you're making?

@Galworld761 5 ай бұрын

It is net. Performance or NAV is net of fees.

@johnlupo3919 2 ай бұрын

STOP SAYING "SO"!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

@johnlupo3919 2 ай бұрын

STOP SAYING "UM"!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

@YourwivestataBBBCH 9 ай бұрын

I just opened up a money market account with ticker SWVXX, when does it pay dividends? Is it quarterly? Thanks in advance.

@rob_cpa 9 ай бұрын

They typically payout dividends each month, but you should double check with Schwab.

@YourwivestataBBBCH 9 ай бұрын

@@rob_cpa thanks, and I just saw that I got $108 added to my SWVXX account. This was probably the 5.24% interest on $25,255 that I invested.

@MarcoAlmeida-yj5og 5 ай бұрын

From my research, it pays out at the 15th of each month (or the next business day if that day falls on a non-business day)except in December which would be the last business day of the month.

@silviebordeaux5799 Ай бұрын

How does SIPC work if you have your money in Vanguard Money Market Fund? Should I keep in bank instead? Thank you