"American Express has one that pays a 3.3% dividend monthly. You can move money in and out at any time, and it's insured up to $250,000 by the FDIC. So if for any reason Amex were to go out of business, which I find highly doubtful since it's been one of Warren Buffett's longest holdings, you would get your money back eventually."
"As opposed to a CD, which can be great, typically if you get a five-year CD yielding four or four and a quarter, you need to hold it. If you try to liquidate it early, you'll probably pay a principal penalty if you don't hold it to maturity. Now there are high yield money markets that we really like."
High yield savings accounts and money market funds provide attractive alternatives to traditional CDs for parking cash safely. These accounts offer FDIC insurance up to $250,000, competitive yields around 3.3% monthly, and complete liquidity without early withdrawal penalties. American Express and PNC are highlighted as quality providers offering flexible access to funds while maintaining safety. Quontic Bank offers even higher yields with low minimum deposits. Unlike CDs that lock funds for specific periods with potential penalties, these accounts allow unrestricted money movement. While yields may decline if interest rates fall, these accounts still significantly outperform standard checking or passbook savings accounts.
Read at 24/7 Wall St.
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