[Wilson]

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?

[Jennifer]

Not sure if this is helpful, but Ally bank has a penalty-free 11 month CD at 4.75% APY. No minimum deposit.

[Matthew]

It’s rarely worth it for the work and organisation you have to do… I personally don’t keep much in cash.

[Melissa]

Seems to be a lot of work especially when interest rates keep changing. Maybe put some in an ibond and or CD for a year.

[Bill]

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.

[Author]

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