High Yield Savings
FDIC-insured cash accounts for emergency funds and short horizons.
Yields on savings accounts move with the federal funds rate and can change at any time.
Yields on savings accounts move with the federal funds rate and can change at any time.
Cash you may need within 12 months generally does not belong in the market.
Key concepts to master
- 01.Total cost of ownership, including fund fees and platform fees
- 02.Liquidity: when, and on what terms, you can get your money back
- 03.Tax treatment and which account type this belongs in
- 04.How this exposure overlaps with what you already own
Common mistakes
- ×Sizing a position based on recent performance rather than a written plan
- ×Confusing infrequent valuation with genuine stability
- ×Ignoring the tax drag of frequent trading in taxable accounts