"high yield" savings accounts

[victory88 5,669]

So I have most of my accounts with chase.  I cannot invest it for the time being and would like to park the cash in an account where I can at least get some sort or return.  I'm seeing certain online savings accounts yielding 1.75-2.00%.  Anyone have experience with ally bank, amex savings account, citizens access bank, CIBC?  I'm thinking of moving all my cash into ally bank.  I have heard good things from friends.  Thoughts? Comments? Recommendations?

[baboso 6,057]

Just make sure they are FDIC insured and keep your deposits at any one bank below $250,000, and you have nothing to worry about relative to losing your money.

[T’Boo Ted Marshall 2,740]

Also look at the time frame on those offers.  Usually pretty short.  

[tokamak 6,443]

I have one savings account at Ally and one at Barclay's that I use for various things. They're fine. I like Ally's website and app a little better than Barclay's. Seems like the interest rates move in lockstep, I assume it's a competitive market. Do you have any specific questions?

[Nice Guy Eddie 13,528]

I've used Ally for over 8 years for savings and CDs.  They used to set the standard for high rates but are now usually middle in the pack of online banks.  But I have zero complaints about their website, quick transfers and customer service.    

[DanRydell 799]

I've used Ally for savings for a few years. I've never had any problems.

[Nice Guy Eddie 13,528]

great site to compare online savings accounts.  And its important to know that a bank's savings and money market rate are not the same.

 

https://www.bankrate.com/banking/savings/rates/

after you set your selections, click on the APY column header to resort so that the highest rate is first.   Looks like 2 or 2.05% is the tops right now.   There used to be an online community called Fat Wallet that discussed these topics to death.  But it closed recently.  

[Red Six 131]

3 hours ago, Nice Guy Eddie said:

great site to compare online savings accounts.  And its important to know that a bank's savings and money market rate are not the same.

 

https://www.bankrate.com/banking/savings/rates/

after you set your selections, click on the APY column header to resort so that the highest rate is first.   Looks like 2 or 2.05% is the tops right now.   There used to be an online community called Fat Wallet that discussed these topics to death.  But it closed recently.  

What an awful world in which we live, where Fat Wallet dies, yet Digg continues on.

[bluto 4,943]

Haven't checked in a while but there's sometimes a high yield acct at smaller banks that do 4+% on 25k-ish with various stipulations that aren't too burdensome. Check out R bank, they were the last one I used 

[Firemans4Horn 18,127]

Do you need the money in the next 12 months? If not you can get a higher rate on a CD. 

[tokamak 6,443]

16 hours ago, bluto said:

Haven't checked in a while but there's sometimes a high yield acct at smaller banks that do 4+% on 25k-ish with various stipulations that aren't too burdensome. Check out R bank, they were the last one I used 

"Reward checking account" is the general name for the product you're talking about. I used to fuck with those things a few years back before interest rates went to shit. Usually they're at tiny (literally one branch sometimes) banks and credit unions. They come with stipulations like $10k-$25k limits, and you have to use the debit card 15-20 times a month to get the high interest rate.  It's not a bad deal for someone with the patience to fuck with it (especially now that interest rates are creeping back up), but IMO it's not a great product for someone like the OP who appears to be looking to park a relatively large amount of money that they're not going to be using regularly to generate transactions.

link: https://www.depositaccounts.com/checking/reward-checking-accounts.html

[gurt 751]

1 hour ago, tokamak said:

"Reward checking account" is the general name for the product you're talking about. I used to fuck with those things a few years back before interest rates went to shit. Usually they're at tiny (literally one branch sometimes) banks and credit unions. They come with stipulations like $10k-$25k limits, and you have to use the debit card 15-20 times a month to get the high interest rate.  It's not a bad deal for someone with the patience to fuck with it (especially now that interest rates are creeping back up), but IMO it's not a great product for someone like the OP who appears to be looking to park a relatively large amount of money that they're not going to be using regularly to generate transactions.

link: https://www.depositaccounts.com/checking/reward-checking-accounts.html

Yeah, most of these accounts are offered from my company.  We market to small banks and credit unions.  The APY is usually around 2-3% up to 10-15k, then like .25% from there.  Usually you have to just have 12 POS transactions and login to your account online to qualify, so pretty easy.  

[Guest Lobo]

Check out United Trust Bank.  They're coming to Texas and are making very aggressive plays in terms of not just rates, but other features and they have real time customer service based in Illinois.  

[Reagan1k 3,024]

Has Bitcoin been mentioned as a safe store of value for your savings?

[wild_turkey 3,185]

I got an email from Capital One for a money market account with 1.75% APY. It also says they’ll give a $200 bonus for a deposit of $10,000 or more. I already have a credit card through Capital One so it seems like an easy move to make. Any reason not to do this?

[RD3 64]

I have Cap1 Money Market for our "savings". 1.75% and fully FDIC.

I had savings with them before so I didn't qualify for the bonus but I opened up the Money Market and moved my savings to that. Not really sure why I need to have a savings with them at this point..

[victory88 5,669]

On 8/15/2018 at 3:00 AM, Firemans4Horn said:

Do you need the money in the next 12 months? If not you can get a higher rate on a CD. 

I'm not sure when I will need it.  I'm in the middle of a construction project that may take a year for my practice and also looking to buy a house sometime in the next two years so I don't want to tie the cash up as I may need to pull from it from time to time.  I'm hoping to move the cash into an online savings and at least get some money back.  My chase rate is shit.  Barely earning $30 a month.  

Looks like Ally is at %1.78... CITI and Amex are at %1.75.  I see some higher rates (1.9) with Synchrony, CIBC, and Citizens access but I've never heard of these banks (I'm not in finance or much of an investor).  Leaning towards ally right now only bc I have buddies that have their accounts with them so I feel a bit more comfortable.  I've also read that their interface is easy to work with.  

Edited August 20, 2018 by victory88

[BNB 100]

Thanks for the Ally recs.  My nephew was wanting to know where to invest his money.  I remembered this thread, but could not remember the specifics.

 

 

[wild_turkey 3,185]

On 8/16/2018 at 8:23 AM, wild_turkey said:

I got an email from Capital One for a money market account with 1.75% APY. It also says they’ll give a $200 bonus for a deposit of $10,000 or more. I already have a credit card through Capital One so it seems like an easy move to make. Any reason not to do this?

I ended up putting some money in the Capital One account to try it out. In about 2 weeks they had deposited my $200 bonus and they increased the rate from 1.75% to 1.85% APY.  It was incredibly simple and the bonus makes for a quick return on that first deposit.

[Nice Guy Eddie 13,528]

On 8/15/2018 at 3:00 AM, Firemans4Horn said:

Do you need the money in the next 12 months? If not you can get a higher rate on a CD. 

If the chances are that you won’t need this money anytime soon, look at 5 year CDs.  I know you can think of a million reasons why you might need the money within 5 years but ask yourself if that is likely to happen.    

And you can always get terminate the CD for a fee. Usually for 2-6 months worth of interest which even with the penalty can be better than a savings or money market account  

another great savings strategy is to ladder the CDs.  Say you have 100K you want to save.  Buy 5 CDs at 20k each. A 1-year CD, 2-year, etc thru 5-year. Then every 12months a CD matures and you can decide what to do with that 20+K money.   

[52-80 19,263]

just put all that money in a position shorting Tesla