Anyone have a high interest savings account?

[georgina]

Ally is running a promotion right now for new funds deposited with them (good for both existing and new clients). Up to $500 max bonus ($50K new funds), you get 1% of the funds deposited in addition to the 2.25% Ally's savings accounts pay currently. Have to keep funds in there until 1/15/22. This is an annualized 6.25% (at minimum, since Ally increases their rates according to the market) on the deposit amount. Check out the DoC blog post HERE. Offer expires 10/21/22.

T bills/notes could be attractive if you have high state and local income taxes since the interest earned is not taxed for state/local taxes. You'll pay federal taxes though.

I bonds are 9.62% through the end of October, then the rate will reset to ~6.47% in November. This does tie up your money at least for 12 months though, but if held at least 15 months - if purchased by end of October - you'd get an annualized 8.21% return.* Interest is taxed only at the federal level. You pay a 3 month interest penalty if redeemed before 5 years, hence the 15 months in the calculations.

* from this article https://seekingalpha.com/article/4546408-i-bonds-what-next

Thanks for the Ally bonus info. Going to take advantage of that with some of my cash stash. Probably won't leave it there after the bonus, I really do like Marcus and when I went to withdraw the rate had gone up another 0.2% recently. But short-term bonuses are great.

I bonds are interesting. I bought a few in mid 2000, each $5000 bond is worth about $18,700 now (13.39% interest currently). Got lucky there. Had DS get one with some extra cash in 2011, and it is only worth $6400 because of the zero base rate and lower overall interest.

 

[platamama]

13.39% interest currently

WOWEE

 

[DCLMP]

I’m so glad wisbugs find my post so funny. They just must be at a loss for words.

 

[DisneyMomJen]

Bask bank online has a 3.05% account. I opened an account there a few months ago. The past few weeks the interest rate was 2.75. Just checked now and it went to 3.05

 

[Eastern]

Synchrony savings is 2.45%

 

[_19disnA]

"High interest" savings accounts is really a misleading name for them. How much you have to invest, how long you plan to keep the money invested and how likely you are to need the money prior to maturity will help determine where to put your money along with your personal financial situation. There are many websites that compare current offerings from banks, financial firms and various savings accounts. That is where I would start. LOTS of investment options are also available understanding that markets can go up as well as down.

 

[barkley]

i think i'm the only person in the world who fears using anything but a brick and mortar institution w/in driving proximity to my home.

 

[georgina]

WOWEE

It will go down some in November, but there is a 3.6% fixed base rate so it will always be that much higher than the ones that have been much lower or 0 base since 2009.

 

[georgina]

i think i'm the only person in the world who fears using anything but a brick and mortar institution w/in driving proximity to my home.

The funds are FDIC insured. Besides the higher interest (no branches to maintain), they are very convenient. I transfer money from online savings to my PNC checking account and the money is there the next day.

 

[georgina]

"High interest" savings accounts is really a misleading name for them. How much you have to invest, how long you plan to keep the money invested and how likely you are to need the money prior to maturity will help determine where to put your money along with your personal financial situation. There are many websites that compare current offerings from banks, financial firms and various savings accounts. That is where I would start. LOTS of investment options are also available understanding that markets can go up as well as down.

For the most part what we are talking about are FDIC insured online savings accounts, not investments. Things like Ally, Discover, Capital One have been mentioned. American Express has one, as does Marcus by Goldman Sachs. Many have no minimum deposits or length of time, no monthly fees, and no market risk. The interest fluctuates with the fed rate, but almost always higher than a brick and mortar bank.

 

[_19disnA]

Not much to go on based on the OP's initial post. How much do they have, how long will it be invested all matter. If they are asking in an online forum for investment advice, have no idea what other investment options they have already considered.

 

[DCLMP]

i think i'm the only person in the world who fears using anything but a brick and mortar institution w/in driving proximity to my home.

No

 

[chicagodisneyguy]

i think i'm the only person in the world who fears using anything but a brick and mortar institution w/in driving proximity to my home.

I think lots of people do. In someways I am like that. It's one thing if you get bad customer service from Comcast or Disney. It's usually more of an annoyance. But if there's an issue with my $$$$, I want the option to go talk to someone face to face.

People with an affinity to brick and mortar banks must still be the majority considering the number of banks still around. There's a Chase in Chicago on just about every corner.

 

[barkley]

The funds are FDIC insured. Besides the higher interest (no branches to maintain), they are very convenient. I transfer money from online savings to my PNC checking account and the money is there the next day.

my local i can get instant transfers online as well as by calling or by stopping in. the interest rates my brick and mortar credit union pays are competitive if not better than the big online guys for traditional savings and cd's (and don't require me to set up other accounts to qualify for). i appreciate as well that my credit union offers a pretty uncommon product- an add on cd. i locked in a not too bad looking rate a handful of years ago but now that rate is nowhere to be found so i've benefited from being able to add funds along the way at that higher rate.

I think lots of people do. In someways I am like that. It's one thing if you get bad customer service from Comcast or Disney. It's usually more of an annoyance. But if there's an issue with my $$$$, I want the option to go talk to someone face to face.

absolutely.

 

[DCLMP]

I think lots of people do. In someways I am like that. It's one thing if you get bad customer service from Comcast or Disney. It's usually more of an annoyance. But if there's an issue with my $$$$, I want the option to go talk to someone face to face.

People with an affinity to brick and mortar banks must still be the majority considering the number of banks still around. There's a Chase in Chicago on just about every corner.

If you could dial and get a real person without having to push ten buttons or repeat yourself 20 times with voice activation it might be ok.

 

[georgina]

my local i can get instant transfers online as well as by calling or by stopping in. the interest rates my brick and mortar credit union pays are competitive if not better than the big online guys for traditional savings and cd's (and don't require me to set up other accounts to qualify for). i appreciate as well that my credit union offers a pretty uncommon product- an add on cd. i locked in a not too bad looking rate a handful of years ago but now that rate is nowhere to be found so i've benefited from being able to add funds along the way at that higher rate.

All fine if that is what you prefer. You specifically used the word 'fear' when it sounds more like you are happy where you are. I have a brick & mortar bank checking account but have no problem with online savings for higher earnings. I have investments with Vanguard which has no local offices also. I am used to doing financial transactions online.

 

[disney-inspired]

All fine if that is what you prefer. You specifically used the word 'fear' when it sounds more like you are happy where you are. I have a brick & mortar bank checking account but have no problem with online savings for higher earnings. I have investments with Vanguard which has no local offices also. I am used to doing financial transactions online.

The only reason I haven't left Chase is because my account was grandfathered back from Washington Mutual and the amount of ATMS they have is really convenient when I travel.

 

[georgina]

I've banked with Ally for over 10 years and have never paid a fee for having an account there. Like all savings accounts, there is a penalty if you withdraw over 6 times in a statement cycle. Read the terms from Ally's website directly to get it straight from the horse's mouth.

Was just looking at my Marcus account before I withdrew funds for the Ally bonus, and saw this -

Due to a change in federal law, you are now free to make more than 6 withdrawals or transfers in a month. At this time, there is no limit to the number of transfers or withdrawals you can make

 

[jkips]

It takes a modicum more work but I will echo what the previous poster said about buying t-bills. I do it through my brokerage account at Schwab and the transaction costs are minimal - no commission and t-bills are as liquid as any financial instrument out there with bid/ask spreads that are super tight. For those of us living in high tax states like California we also benefit from not having to pay state taxes on the interest income. If you are already having to balance your cash between your savings and your checking account buying and selling t-bills instead of moving money into and out of savings isn’t much different.

 

[dhardawa]

I have my sinking funds through Capital One - current APY is 2.20% which is nice for my short term savings.

Hmm…. My Capital One is at 0.30%.