If FDIC insured online bank accounts aren't safe can Treasury bills be much safer?I'm looking to put some money in an investment vehicle other than stocks and I'm not really interested in bonds or CDs. I want to be able to get at my money almost instantly so I'm thinking FDIC insured online savings account or maybe MMF? How are online banks like emigrantdirect.com and ingdirect.com in terms of getting at your money quickly?
Dave, ACH transfers generally take 3 days. However, if the online bank offers checking account privileges --which some do, such as GMAC-- then the transfer could be "instant".Use www.bankrate.com to check for best rates and pay attention to the account minimums they impose to earn interest, and the other "gotcha's" that make some offers not the appealing offer it initially seemed. In short, do your due diligence. In truth, no financial institution --our government included-- won't renege on its guarantees. But think about the conditions under which that would happen, e.g., nuclear war. How important will it be to have "instant access" to your money in those conditions? A gun and a sack of potatoes will become currency. I'm not a "survivalist", but I do intend to survive. Right now, we live in uncertain times with our "Dear Leader" wanting to launch 2-4 more of his vanity wars. But going to cash -- actually, going to gold-- is a long ways off as yet. So, as unappetizing as it might be, continuing to engage "normal markets" by investing in stocks, bonds, etc. is the prudent bet. But keep an eye on the exit door. Best wishes, Charlie
FDIC insured banks ae backed by the gummint, but they are one step removed. Either pick a bank that you have confidence will not fail, or put your money elsewhere. I think T bills would be fine, but you could also do something like the Vanguard MMF that invests only in T bills - more liquid than directly holding the bills.
I've been with ING for a couple years now. Sucking money out by ACH to say TreasuryDirect happens with no lagtime, but transfers to-from a vanilla checking acct take a day or two. Once you transfer money to ING, there's a waiting period before you can transfer it out again, something like seven days, empirically.
Thanks to all who answered my query.Except for three REITs I'm trying to sell (at a high enough price) I'll probably hold onto most of my stocks, but henceforth I'm planing to put new money in a safer place. Vanguard's MMF might be one way to go if it's FDIC insured (we've already got ROTHs and an IRA there) and I'll be going back to Bankrate.com for a starting checking/savings account. I'm hoping I can flit funds from one competing bank to another and keep up with inflation while I wait to see what happens.Desert (an old Y2Ker) Dave(Instead of potatoes, consider hitting the supermarket on that day with a credit card. Buy only food that doesn't require refrigeration. Don't forget the bottled water and candles.)
Vanguard's MMF might be one way to go if it's FDIC insured*************************It is not insured. What I was suggesting was a MMF that is exclusive invested in treasury bills.
What I was suggesting was a MMF that is exclusive invested in treasury billsYou might take a look at Fidelity U.S. Treasury MMF (FDLXX).OxBeaux
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