TIAA Direct Offering a 1.25% APY Online Savings Account
Many investors keep a chunk of their funds in "safe" investments, generally defined as things that have little or no prospect of losing you part of your principal. This might be an emergency fund, a dedicated portion of one's portfolio, or merely a parking place for funds that you hope to profitably invest in the future. Whatever the reason, such funds have become a bit of a problem because the very low interest rate environment makes it tough to even break even against the ravages of inflation. Among a number of options is a savings or checking account, although at most banks you will receive an annual yield well under 1%. However, savings and checking accounts have a certain appeal for at least a portion of your safe money as they are backed by the FDIC and generally offer pretty much instant liquidity with no penalties for doing so.
TIAA Direct, a banking subsidiary of TIAA-CREF, is currently offering a 1.25% APR yield on savings accounts with as little as $25 on deposit:
http://tiaadirect.com/banking/bank/savings/index.html Although this rate can change at any time, it is one of the highest (if not the highest) on offer at the moment. As long as this rate lasts, it appears to be an attractive option for investors wanting a highly liquid spot to park funds. Of course, if the bank lowers their rate you can always go elsewhere.
Disclosure: I have no interest whatsoever in TIAA Direct and do not receive referral fees.
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