Reader Question: Higher Interest Rates on Cash Without Internet Access or Cell Phone? - My Money Blog

Here’s a scholar question that I recovered absorbing regarding “low-tech” retirees:

Hi – my 82 year-old father-in-law does not ain a compartment telephone oregon a computer. He has precise small “visibility” connected the net due to the fact that helium was a self-employed craftsman for the past 40 years. But helium has wealth to invest, and it is sitting successful a near-zero savings account. For the reasons listed above, helium cannot suffice for immoderate of the high-yield savings accounts that are retired there. Their methods of identifying customers necessitate a compartment telephone and immoderate benignant of documentable net presence. Maybe helium is an utmost example, but I americium guessing determination are others successful akin situations. Any thoughts connected however specified a idiosyncratic tin get a higher yield? Thanks.

I americium empathetic to this occupation arsenic I americium often helping older relatives navigate modern beingness without net access. I’m besides a instrumentality of low-tech arsenic a backup signifier of resilience and exigency preparedness. What would hap if the powerfulness went down for an extended period? What would hap if you passed distant abruptly and cipher could fig retired your passwords?

This question specifically addresses debased involvement rates connected cash. It is not an mishap that NONE of the 3 biggest banks by subdivision size (Bank of America, Chase, and Wells Fargo) connection a decent involvement complaint connected their basal checking and savings accounts. (Even Citibank lone offers their high-yield Accelerate savings relationship successful states wherever they person nary carnal branches.) If they made it casual to motion up for a “high-yield savings account”, they would suffer galore millions successful nett arsenic each the offline folks would happily power implicit their deposits earning 0.01% APY. My 94yo great-aunt volition dilute her crockery soap until it comes backmost connected merchantability astatine the section market store. You tin stake she would locomotion close into her section subdivision to motion up for a savings relationship paying 3% APY alternatively of 0.02% APY!

My archetypal thought is that I would unfastened an relationship with Fidelity Investments, arsenic they person coagulated past arsenic a accepted broker with a fully-staffed lawsuit work telephone line. Fidelity would inactive tally conscionable good if determination was lone snail-mail envelopes and rotary phones. This Fidelity Core Positions page is simply a useful bookmark to spot the existent involvement rates (screenshot beneath taken 11/18/2022) connected the assorted options for your halfway presumption (default for uninvested cash). As you tin see, the rates are rather competitory with online banks. Money marketplace funds are not FDIC-insured, but they are precise adjacent (and adjacent person aft caller regulations). I personally don’t suffer a spot of slumber connected my Fidelity wealth marketplace funds and I besides snail message them ample checks each twelvemonth for my Solo 401k plan.

In addition, Fidelity has a decent subdivision network (“Investor Centers”) astatine large metro areas nationwide. Finally, Fidelity offers a coagulated inventory for brokered CDs and entree to Treasury bills and bonds if you were consenting to fastener up your wealth for a higher rate.

Why don’t I see Vanguard? While Vanguard wealth marketplace funds are fantabulous and usually wage adjacent higher involvement rates than Fidelity wealth marketplace funds, I person heard acold excessively galore customer complaints astir hour-long clasp times for telephone lawsuit service. Vanguard besides does not person a carnal subdivision network. I effort my champion to lone usage Vanguard for elemental scale money transactions and thing complicated. Meanwhile, TD Ameritrade and Schwab bash person immoderate wealth marketplace options and carnal branches, but you indispensable marque each transaction manually portion the default is simply a bittersweet currency expanse programme paying little than 0.50% APY. This is wherefore I’d prime Fidelity implicit the others. (No, Fidelity did not wage maine to accidental immoderate of this. Unfortunately…)

Another enactment would beryllium a section recognition national that is looking for indebtedness maturation (which requires deposit growth) and frankincense is offering precocious involvement rates. You would privation to find 1 that has a carnal subdivision successful your area, and the champion assets for this is DepositAccounts.com which allows you to hunt by zip code. Make definite to uncheck the “Web Only” container and cheque the “Local Branches” box.

This volition hopefully fto you find a carnal subdivision adjacent that volition connection a decent rate. Oftentimes, the bully rates lone amusement up successful certificates of deposit (which let them to lucifer maturities) but you could simply ladder adjacent 1-year CDs implicit clip to support a coagulated complaint with decent liquidity. Many of the military-affiliated recognition unions person a larger subdivision web and a past of competitory products, and immoderate of them tin beryllium joined without subject status. Good luck and acknowledgment for helping others!