Managing Your Cash: Savings Rates, CDs, Money Market Funds, and FDIC Insurance

Where you park your cash matters more than most people think. Put $10,000 in a big-bank savings account paying 0.04% and you earn about $4 a year. Put the same $10,000 in a money market fund yielding 3.52% and you earn about $352. Same money, same safety for most purposes, nearly 90 times the interest. In this lecture, I walk through today’s actual rates, from bank savings accounts and CDs to money market funds, T-bills, and savings bonds, and show how to pick the right home for every dollar you have. A few things you’ll learn along the way: Why a bank’s “featured” CD can look great, then quietly auto-renew at 0.10% if you miss a 7-day window When a tax-free municipal money fund beats a taxable one. With today’s yields, the muni fund only wins if your federal bracket is above 34.4% Why muni interest still counts for Medicare IRMAA surcharges and Social Security taxation Why a lost debit card can cost you far more than a lost credit card if you wait too long to report it What’s covered: In the news: lawsuits over low brokerage cash sweep rates Representative rates today, and how much shopping around pays Interest rates in perspective: 2010, 2021, 2023, and today’s yield curve Bank rates in Northern Virginia vs. Charles Schwab Money market funds, municipal money funds, and money market ETFs Comparing returns after tax and finding the breakeven tax rate What muni interest does and doesn’t escape Depository vs. nondepository financial institutions FDIC, NCUA, and SIPC: what’s insured and what isn’t Checking, savings, NOW, and money market accounts Debit vs. credit cards and your maximum loss if a card is stolen Cashier’s checks, certified checks, and reconciling your account Building an emergency fund and automating your savings CDs, T-bills, I bonds, and EE bonds Simple vs. compound interest and the effective rate of interest Where each dollar belongs: matching cash to when you’ll need it About me: I’m Tom Robinson, Ph.D., CPA, CFA, CFP®, CAIA, Faculty Director of the Financial Planning and Wealth Management program at George Mason University’s Costello College of Business. This video is for educational purposes only and is not financial, tax, or investment advice. Rates shown were current in mid-September 2026 and change often. Subscribe for more on financial planning and wealth management:    / @proftomfinplan   #PersonalFinance #EmergencyFund #MoneyMarket #FinancialPlanning #CFP