Short term CD rates have hovered around 2%. They are not completely liquid but if you are saving for the medium term, they are a valid investment vehicle.

Marcus recently had a 'high interest savings' program where the base rate was 2%, you got a short-term bonus of another percent for signing up. (So effectively 3%). With limits and early withdrawal penalties, though.

I think the program's ended, but it was nice when it was available.

CDs / money market are essentially risk free. I don't understand why people expect a rate of return above inflation without taking any risk. This is a fundamental component of capitalism, and most people have no understanding of it.

No, rates were going up in lockstep with fed tightening and peaked late last year. I was finding 6-12 mo. CDs with nearly 3% coupon. Then everything fell apart back in the Spring and it has continued its downward trajectory until the yield curve inverted and now we're looking at all kinds of fucked up rates and short term CDs are like 1.9% but some of those banks are, well, you'd be crazy to do business with some of those names.

I watch corporate bonds and the same thing is going on. It's a giant shit show right now. Things are gradually heading in an ominous direction and I did reallocate my investments some just in case. The problem is, you can't rely on bonds anymore, either. So I'm in MM funds at the moment, and those have shitty returns and high fees.

The next defensive stage downward for me is precious metals hidden at home. I hate to even imagine doing that, but I won't pay negative rates on savings when gold and silver are available.

Have been getting 1% monthly uncapped for almost 8 years now on my checking account.

That’s over 12% APY. I think you’re either getting scammed or full of it.

Sorry, I should have been a lot more clear when I wrote this post last night.

1% compounded monthly is what I intended to say, as opposed to compounded continuously or yearly.

You mean 1 percent annual return compounded monthly?

Or 1/12th of a percent monthly return compounded monthly?

1% APY compounded monthly, which is roughly below inflation. And it's taxed of course.

Isn't your second statement the same as the first? 1200 dollar balance returns $1 per month, or $12 per year?

Technically (1 + (x/12))^12 != (1 + x)

In this case where x = 1% (or .01) they're so close it almost doesn't matter. For x = 10% it's a lot clearer.

That said, it's also not equal to (1 + y) ^ 12, where y is whatever value is needed to have (1 + y) ^ 12 = 1 + x.

That is an exception, not the rule. If you have Chase, Citi, BofA, etc. it’s been like .01% for 10 years.

If you're willing to move your funds to another institution, check out https://www.depositaccounts.com to see how much you could be earning with your money.

Consumer banks barely pay anything. It’s awful. I moved all my long term cash to online banks and investment accounts.

I understand where you are coming from, but my bank has something like 100B USD in assets under management, so I think such a plan is available to millions of people

Where are you getting 1% monthly? I’m getting like 2% yearly from Ally.

Where? Even with something like Lending Club, overall ROI bounces between 7-10% depending on default rates.

If you're getting 12% annually on anything, count me in.