02-04-2023, 04:51 AM
Best suggestions on where to hold cash for two weeks?
<!-- SC_OFF --><div class="md"><p>I use Schwab as my broker and primary checking account. My paycheck is direct deposited every two weeks. On payday I'll pay bills, make investments, and have between $500-$1000 left over that normally sits in my checking account for two weeks until the next payday. Each payday that cash is used to pay off what's spent on my charge card that I use for daily purchases. Then rinse and repeat every two weeks.</p> <p>My checking account has an APY of 0.45%. I have a HYSA at 3.3% APY with a different bank (AmEx Bank) where my emergency fund is, but the 3 business days to transfer money between banks makes the cash not very liquid.</p> <p>Schwab has a money market account (SWVXX) with a current 7 Day Yield of 4.29%, so that's one option I've considered. Or, the more risky move is put it into an S&P 500 mutual fund for two weeks between paychecks.</p> <p>I know a two week cycle isn't going to net a huge profit, but I look at it as that's money sitting around for two weeks not doing anything, might as well make a few dollars off of it.</p> <p>What are some things that other people do with their cash between pay periods? Or am I overthinking this and should just leave it as cash in the bank?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Well_Sorted8173"> /u/Well_Sorted8173 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/10souhf/best_suggestions_on_where_to_hold_cash_for_two/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/10souhf/best_suggestions_on_where_to_hold_cash_for_two/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>I use Schwab as my broker and primary checking account. My paycheck is direct deposited every two weeks. On payday I'll pay bills, make investments, and have between $500-$1000 left over that normally sits in my checking account for two weeks until the next payday. Each payday that cash is used to pay off what's spent on my charge card that I use for daily purchases. Then rinse and repeat every two weeks.</p> <p>My checking account has an APY of 0.45%. I have a HYSA at 3.3% APY with a different bank (AmEx Bank) where my emergency fund is, but the 3 business days to transfer money between banks makes the cash not very liquid.</p> <p>Schwab has a money market account (SWVXX) with a current 7 Day Yield of 4.29%, so that's one option I've considered. Or, the more risky move is put it into an S&P 500 mutual fund for two weeks between paychecks.</p> <p>I know a two week cycle isn't going to net a huge profit, but I look at it as that's money sitting around for two weeks not doing anything, might as well make a few dollars off of it.</p> <p>What are some things that other people do with their cash between pay periods? Or am I overthinking this and should just leave it as cash in the bank?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Well_Sorted8173"> /u/Well_Sorted8173 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/10souhf/best_suggestions_on_where_to_hold_cash_for_two/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/10souhf/best_suggestions_on_where_to_hold_cash_for_two/">[comments]</a></span>