[leetcrew]

my guess is this is not a common use case among their customers. why do you want a savings account anyway?

[oplav]

I keep my emergency fund in a high interest savings account. I don't know what Schwab's rates are, but if you don't care about that yield and have other accounts with Schwab, maybe the simplicity is worth it.

[leetcrew]

why not just grab some shares of a bond fund? even with the best savings accounts you are slowly burning your money.

[halbritt]

Maybe try I-bonds? Better Rates than high interest savings.

The downside is that you can only invest 10k at a time and you’re illiquid for six months.

[halbritt]

Why is this getting downvoted? Current return on I-bonds is 2.52%, higher than any high-yield savings that I know of. It compounds semi-annually, tracks inflation, and there are no penalties for withdrawal. Seems perfect for an emergency fund and less hassle than a CD ladder. I'm not shilling an investment product, it's available direct from the US treasury:

https://www.treasurydirect.gov/indiv/research/indepth/ibonds...

[oplav]

It's not a bad idea. I've thought about migrating to I-Bonds. I've kept it in a savings account for the liquidity, but if you are okay with having a less liquid emergency fund, go for it.

[anarazel]

Because "emergency fund" and "illiquid for six months" aren't a great combination?

[halbritt]

Illiquid in the sense that it takes a few days to liquidate. One can always get back their original investment with no penalties.

[oplav]

Is that correct? According to the TreasuryDirect website, you can't redeem a bond within the first year. If a bond is less than 5 years old, you pay a 3 month interest penalty.

https://www.treasurydirect.gov/indiv/research/indepth/ibonds...