Need to do something with my bank savings account

[KS Toronado]

since it draws very little money. Buddy has been telling me money markets are the way to go, he claims around
$300 profit every month from a $90,000 investment. Lady at my bank says no, CDs are the only way to go.
Asked how US Savings Bonds interest rate compare to their CDs and got more beating around the bush, she
was determined to get me into CDs like she was getting a commission, I walked out.

So where's the best place to put some presently unneeded money, money markets, CDs, or US Savings Bonds?
The bank's savings acct sure doesn't pay shit. Thanks in advance for useful information.

[OLDMDDEM]

1. Credit Union

I have CDs that pay over 4%.

[CousinIT]

2. Treasury Bonds are earning 5%+ right now. n/t

[claudette]

3. Personally

I prefer Treasury I-bonds for money that you know you won’t need for at least a year. (Because that’s how long you have to wait to cash it in). No taxes need to be paid on the interest until it’s cashed in and there is NO state tax due on the interest. In NY that means a lot to investors

CD’s that offer a high interest rate are good too but the high interest earned adds to your adjusted gross income which means more taxes due.

[AZSkiffyGeek]

4. High-yield savings account?

My wife and I just set one up through Synchrony and get 5% interest.

[Easterncedar]

5. I have CDs for what it's worth, but I'm no wiz

The credit union is now paying just 4 percent for 2-year. My 9-month at the bank pays just over 5. I don’t think it’s terribly low as liquidity and zero risk for these accounts are considerations for me.

[Ocelot II]

6. Credit unions often have better interest rates.

A CD will give you a better return but a money market is liquid. If you think you won't need to dip into the fund for a certain amount of time, get a CD. My credit union offers a 12-month CD for an annual percentage yield of as much as 5%. The interest rates on US savings bonds (I Bonds) is 5.27% right now, compounded semi-annually but rates can be adjusted every 6 months, and you can only buy $10K per year. Also, if you cash in before 5 years you lose 3 months of interest. https://www.treasurydirect.gov/savings-bonds/comparing-ee-and-i-bonds/

[Wonder Why]

7. Treasury bills! Open an account with TreasuryDirect. They ARE the government.

When you buy a Treasury bill, you can do it for as little as 4 weeks or go for 8 weeks. You can auto-renew and, if you do, change your mind to stop it. They pay more than the banks and credit unions.

Understand how they do it because it's a little confusing. If you buy $1,000 T-bill, then you don't pay $1,000 but $1,000 minus the interest rate but you get $1,000 back at the end. If you renew, each time it renews, they send you a check with the interest. If you have direct deposit set up, then they deposit that interest in your bank account each time it renews.

Remember, if a bank or C.U. fails, the government will back your savings but you may lose the interest and it could take some time to get your money. On the other hand, if the government fails, the money is lost no matter if you have it in a bank or C.U., or in Treasuries as they all depend on government money so why go through a third party that skims off some of the interest so they can make money, too?

Treasury Direct
Recent rates have been 5.49%!

Note that treasury bills and bonds are exempt from state (but not federal) taxes.

Note, if you want to go longer term (like CDs are), look at Treasury Bonds, not bills. Same site.

[CousinIT]

14. I'm considering looking into this - the shorter-term ones.

Money in the bank is dead - not doing anything. I'd rather have it earning something, and I heard these bills/bonds are a good deal.

[LonePirate]

8. I picked up a 1 year CD last fall that was paying a little over 5%

I’m seeing 3 month and 6 month CDs that are paying over 5% as well. Those might be worth investigating if you don’t mind paying the taxes and don’t mind having your money locked up for a few more months.

[Hope22]

10. Our Credit Union has the same great rates.

I get the specials and then mark the calendar with the renewal date that way they don’t roll over with a lower rate.

[Fiendish Thingy]

9. If you have $90k in savings, it shouldn't be there

Somebody with $90k should find a good advisor to invest in a balanced, diversified portfolio within one’s risk tolerance. It’s the only way the money will keep up with inflation.

For smaller amounts, say under $25k, high interest savings with a required minimum balance, or laddered (staggered maturity dates) CD’s would be a good choice.

[spooky3]

11. If op is willing to consider stocks, and can accept volatility,

An index fund avoids having to pay an adviser.

[doc03]

12. Last I looked my Vanguard MM was paying

5.25%.

[jimfields33]

13. I'll just say that savings bonds can be a pain to cash.

Banks are not cashing anything with a thousand dollars. You have to fill out a form and send them to Washington DC. CDs are best if you need money fast.