Tip of the Month | December 2022

Cash Alternatives with Rising Rates

Written By: Ryan Rink, CFP®, EA, ChFC®, CLTC®

The Federal Reserve has been implementing interest rate increases throughout 2022. One positive is that we are now starting to see interest rate increases in cash alternatives. Unfortunately, many of the big banks have not yet raised their savings account/money market rates to match what we’ve seen in other cash alternatives. Consider the Schwab Money Market Fund or a High-Yield Savings Account for your short-term cash needs.

Schwab Money Market Funds: The Schwab Value Advantage Money Fund (Ticker: SWVXX) is paying a 7-day yield of 3.78%. This fund is next-day liquid, but not FDIC-insured. The interest rate continues to fluctuate while invested.

 High-Yield Savings Accounts: Many online-only banks are now offering competitive rates in their High-Yield Savings accounts. These accounts are liquid, FDIC-insured and have interest rates around 3.00%. The interest rate continues to fluctuate while invested.

 If you’re interested in any of these cash alternatives, reach out to your Shakespeare Advisor for assistance.

 *Note: All rates above are as of 12/09/2022.