Best Places to Park Floating Money
If you have a ton of cash to float for 15 months due to 0% APR offers, you might want to put it into places that earn good interest.
+----------------------+-----------+--------------------------------------------------------+
| Item | Interest | Conditions |
+----------------------+-----------+--------------------------------------------------------+
| Insight Prepaid Card | 5% APY | 1. Must transfer money from the prepaid card into |
| | | the built-in savings account. |
| | | 2. The savings account has a maximum balance of $5,000,|
| | | but the accrued interest allows it to exceed the |
| | | limit and earn additional interest. |
| | | 3. Multiple accounts are allowed by applying for |
| | | additonal cards and using different usernames. |
| | | 4. Interest is compounded daily and paid quarterly. |
+----------------------+-----------+--------------------------------------------------------+
| Northpointe Bank | 5% APY | For each month, |
| Ultimate Account | | 1. Interest rate applies to the first $10,000 only |
| | | 2. Receive $100 in direct deposits or $100 in external |
| | | withdrawals |
| | | 3. Make 15 debit card purchases |
| | | 4. Enroll in e-statements |
+----------------------+-----------+--------------------------------------------------------+
| Lake Michigan Credit | 3% APY | For each month, |
| Union | | 1. Interest rate applies to the first $15,000 only |
| | | 2. Receive 1 direct deposit |
| | | 3. Make 10 debit card purchases |
| | | 4. Log into online banking 4 times. |
| | | 5. Enroll in e-statetments |
+----------------------+-----------+--------------------------------------------------------+
| I Savings Bonds | 1.96% APY | 1. You cannot withdraw for 1 year |
| | (05/01/17 | 2. If withdrawn before 5 years, a penalty of the last 3|
| | to | months of interest applies |
| | 10/31/17) | |
+----------------------+-----------+--------------------------------------------------------+
| Vanguard Short-Term | 1.92% | 1. Open a Vanguard brokerage account |
| Investment-Grade Fund|Yield (ttm)| 2. Minimum $3,000 investment |
| Investor Shares |(06/18/17) | 3. 0.20% expense ratio |
| (VFSTX) | | |
+----------------------+-----------+--------------------------------------------------------+
| Ally Bank No Penalty | 1.50% APY | 1. Minimum $25,000 deposit |
| CD |(11 months)| 2. Early withdrawal penalty of 90 days interest applies|
+----------------------+-----------+--------------------------------------------------------+
| Self-Help Federal | 1.31% APY | 1. Minimum $500 deposit |
| Credit Union Money | | |
| Market Savings | | |
+----------------------+-----------+--------------------------------------------------------+
I opted to park my floating cash into several Insight accounts as well as a Northpointe Bank Ultimate Account. The Ultimate Account is useful since I can make transfers in and out for regular usage. For the balances that couldn't fit into those accounts, I put into LMCU's Max Checking, although they don't allow external transfers. You'll have to do an ACH pull or write a check if you want to transfer your money.
+----------------------+-----------+--------------------------------------------------------+
| Item | Interest | Conditions |
+----------------------+-----------+--------------------------------------------------------+
| Insight Prepaid Card | 5% APY | 1. Must transfer money from the prepaid card into |
| | | the built-in savings account. |
| | | 2. The savings account has a maximum balance of $5,000,|
| | | but the accrued interest allows it to exceed the |
| | | limit and earn additional interest. |
| | | 3. Multiple accounts are allowed by applying for |
| | | additonal cards and using different usernames. |
| | | 4. Interest is compounded daily and paid quarterly. |
+----------------------+-----------+--------------------------------------------------------+
| Northpointe Bank | 5% APY | For each month, |
| Ultimate Account | | 1. Interest rate applies to the first $10,000 only |
| | | 2. Receive $100 in direct deposits or $100 in external |
| | | withdrawals |
| | | 3. Make 15 debit card purchases |
| | | 4. Enroll in e-statements |
+----------------------+-----------+--------------------------------------------------------+
| Lake Michigan Credit | 3% APY | For each month, |
| Union | | 1. Interest rate applies to the first $15,000 only |
| | | 2. Receive 1 direct deposit |
| | | 3. Make 10 debit card purchases |
| | | 4. Log into online banking 4 times. |
| | | 5. Enroll in e-statetments |
+----------------------+-----------+--------------------------------------------------------+
| I Savings Bonds | 1.96% APY | 1. You cannot withdraw for 1 year |
| | (05/01/17 | 2. If withdrawn before 5 years, a penalty of the last 3|
| | to | months of interest applies |
| | 10/31/17) | |
+----------------------+-----------+--------------------------------------------------------+
| Vanguard Short-Term | 1.92% | 1. Open a Vanguard brokerage account |
| Investment-Grade Fund|Yield (ttm)| 2. Minimum $3,000 investment |
| Investor Shares |(06/18/17) | 3. 0.20% expense ratio |
| (VFSTX) | | |
+----------------------+-----------+--------------------------------------------------------+
| Ally Bank No Penalty | 1.50% APY | 1. Minimum $25,000 deposit |
| CD |(11 months)| 2. Early withdrawal penalty of 90 days interest applies|
+----------------------+-----------+--------------------------------------------------------+
| Self-Help Federal | 1.31% APY | 1. Minimum $500 deposit |
| Credit Union Money | | |
| Market Savings | | |
+----------------------+-----------+--------------------------------------------------------+
I opted to park my floating cash into several Insight accounts as well as a Northpointe Bank Ultimate Account. The Ultimate Account is useful since I can make transfers in and out for regular usage. For the balances that couldn't fit into those accounts, I put into LMCU's Max Checking, although they don't allow external transfers. You'll have to do an ACH pull or write a check if you want to transfer your money.
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