Ivy Bank Indexed Savings Account is a high yield savings account which is designed for savers seeking a competitive rate without the hassle of having to frequently move money from bank to bank. The rate resets at the beginning of each calendar month and is indexed to the One-Month Treasury Yield. It’s an FDIC-insured account with a $2,500 minimum.
Direct Link to Ivy Bank Indexed Savings Account
Ivy Bank has been offering a high yield savings account, and I believe they’ve been doing a good job at keeping up with rate increases to match the top rates offered. (Maybe they are a CFG competitor for best simple high yield account?) This indexed account is a specialty product for someone who wants to rates matching the monthly Treasury yield.
This isn’t very different from buying U.S. Treasuries with auto-repurchase set up, if you are okay locking up funds for 30 days. There’s also another similar CD product from Merchants Bank which tracks the U.S. Treasury rates. This Ivy Bank account somehow seems simpler for someone who is more familiar with traditional savings accounts. Another advantage of this account is that the funds are not locked up at all.
One important downside to note: U.S. Treasuries are exempt from state and local taxes while this Ivy Bank account presumably is not exempt.
Personally I haven’t gotten around to doing any of these, and have been using a brokerage money market account which also more-or-less tracks the current Treasury rates since it’s mostly based on Treasury purchases.
Hat tip to andi
GIPHY App Key not set. Please check settings