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Savings account rates are terrible compared with alternative investments though, even cash-storage investments.

I’m not aware of anything with that risk / liquidity profile which pays better? In fact theoretically there shouldn’t be anything.

Well, that sort of depends on how you value FDIC insurance.

Not any higher than SIPC

- High yield savings accounts

- CDs

- Money market accounts

All pay much higher than a typical megabank savings account and are equally as safe.

Sorry i meant better than high yield savings.

Bond ETFs are right now around 2% yield with slightly higher risk than a savings account

Could you give some examples, adjusting for risk?

No penalty CDs are strictly better than savings accounts. I was able to lock my emergency savings into a 1.6% CD the day the Fed announced rates cuts.

Why are they strictly better? You remove interest rate risk at the expense of yield. They currently pay less than high interest savings.

Whenever I looked at them last year, they were always slightly higher yield than the online savings accounts. Perhaps it was just a promotional rate.

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