Over the past year I’ve been opening and changing savings accounts while rates increase. Wondering if the extra amount is really worth all the time.
Let’s say you have $50,000 that you’re moving around chasing yield. A 0.5% increase is only $250 extra over a full year. How much are people keeping in savings that are also playing this game? Is it worth it?
Maybe when there’s an additional bonus?
Ladder t bills or use federal money market funds instead?
If you are in one of the big banks, it’s absolutely worth it that first time to find a HYSA or money market fund. After that? I think the people switching more often are generally chasing sign up bonuses not rates. If you can get $250 on a $10k balance, that is a lot more value than $250 while tying up $50k.
As for who keeps that much cash? If you spend $100k, $50k could be your emergency fund. Or if you are retired, you might have 2 years in cash/cds.