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re: AMEX HYSA - 4/9/24 just dropped for first time from 4.35% to 4.3%

Posted on 5/11/24 at 12:18 am to
Posted by Rize
Spring Texas
Member since Sep 2011
15834 posts
Posted on 5/11/24 at 12:18 am to
quote:

USFR is still paying almost 5.5%. Just use that.


I’m going to max out the FDIC portion on both of my HYSA’s by June and will need a place to park some extra cash. Is there a chance that USFR will lose money? I think I’m getting 4.25% on my capital one and 5.05% on my other one. I’m ok if the HYSA’s go to .001 interest but don’t want to get into anything that I could lose money on.
Posted by SquatchDawg
Cohutta Wilderness
Member since Sep 2012
14259 posts
Posted on 5/11/24 at 6:55 am to
SPAXX is at a 7 day yield of 4.95% in my Fidelity MM and if something happens I can move it to just about anything.
Posted by Big Scrub TX
Member since Dec 2013
33577 posts
Posted on 5/11/24 at 5:09 pm to
quote:

I’m going to max out the FDIC portion on both of my HYSA’s by June and will need a place to park some extra cash. Is there a chance that USFR will lose money? I think I’m getting 4.25% on my capital one and 5.05% on my other one. I’m ok if the HYSA’s go to .001 interest but don’t want to get into anything that I could lose money on.
I don't see how it can lose money. It's unlevered exposure to US Treasury notes. I suppose I can imagine an extremely remote scenario in which the ETF just trades to a big discount. However, if Treasury ETFs are trading at big discounts, then it's certainly possible that money market funds are breaking the buck.
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