High Yield Savings Account

A place to discuss anything... except credit cards!
14 posts
Nixon
Centurion Member
Centurion Member
 
Posts: 1071
Joined: Mon Nov 03, 2014 11:12 am
Location: Great Southwest

Re: High Yield Savings Account

Postby Nixon » Mon Jun 01, 2015 11:49 pm

whit wrote:
Vermonster wrote:People that use the stock market for a "savings account" tend to look more at dividend based stocks. That way you are not as focused on the changing value of the stock, but more on what the stock can make for you.

For me CD's used to be a great way to lock money up so I didn't try and spend it. When I started banking a 6 month CD was earning 7% APY, now though you have to invest $10,000 at 120 months just to hit 1%.


When you started banking the rate to borrow was probably a lot higher too.

Sorry it's just a bit of a pet peeve of mine whenever folks go on about what used to be, but only remember the good and not the bad, in this case, mortgage rates of 9-15%.

Social security also wasn't so heavily relied on while we're on the subject, pensions used to be fat and not non-existent. 401k was a supplement alongside, savings, and

Health care used to be so good..now you're lucky if you're in a company that has it. A lot will minimize the amount of hours you work per week to 37ish..as full time.


Yep. Except for our grandfathered "Legacy FT" employees who work between 41.5-42.5hrs, most positions are now 29hrs and below and graduate to ~37hrs as a goofy way of "Full Time", Fortunately Supervisory positions like mine are still "Legacy FT" and you can cover the whole family for basically a pittance ($100/mo, used to be $25/mo)
Image


Vermonster
Centurion Member
Centurion Member
 
Posts: 725
Joined: Mon Oct 01, 2012 11:09 pm
Location: NJ

Re: High Yield Savings Account

Postby Vermonster » Tue Jun 02, 2015 7:34 am

whit wrote:When you started banking the rate to borrow was probably a lot higher too.

Sorry it's just a bit of a pet peeve of mine whenever folks go on about what used to be, but only remember the good and not the bad, in this case, mortgage rates of 9-15%.

Social security also wasn't so heavily relied on while we're on the subject, pensions used to be fat and not non-existent. 401k was a supplement alongside, savings, and

Health care used to be so good..now you're lucky if you're in a company that has it. A lot will minimize the amount of hours you work per week to 37ish..as full time.


I had just turned 18, so there was no bad to remember. I worked for my dad building houses and deposited cash into my bank every friday. My options then were a checking account at 0%, a savings at something like 1%, or a CD at 7%. Mortgages, SS, 401k, and Healthcare are irrelevant in the scope of saving money as an 18 year old.

As I was saying, a CD was my choice because I was young and needed that extra help to save my money. I wasn't really talking about how amazing CDs were, just simply pointing out that while they used to be a good option, now they offer less than some savings accounts.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

kdm31091
Centurion Member
Centurion Member
 
Posts: 1009
Joined: Sat Feb 21, 2015 3:35 pm
Location: Claymont, DE

Re: High Yield Savings Account

Postby kdm31091 » Tue Jun 02, 2015 8:05 am

obxfisherman wrote:
kdm31091 wrote:
darkguy2 wrote:What savings accounts do you guys use? Currently I have mine though Barclay. My main is 1% APR and my second is a dream account that gives 1.05%, but caps deposits to $1K a month. It also offers bonuses if you deposit funds 6 months in a row and do not take them out for 6 months. If I do both it bumps the APR to 1.1%. The only downside to using an online savings account is that it takes 3-5 days to transfer funds to my checking account.


I think "high yield savings accounts" are a total misnomer. Even the highest yield ones I have seen are far less than 2%. That is definitely NOT a large yield especially if you're putting a lot of money into it.

Savings accounts need to either be abolished completely, or renamed. To act as if someone could actually use it to "save" as in grow a reasonable amount of money is ridiculous. At that 1.05%, you will be lucky to earn a dollar or two a month in interest (or less depending how much you're putting in)


I've always wanted to ask someone like you this question because I like your thinking regarding savings accounts. Now if savings accounts are a bad place to grow money due to interest rates, what do you do with all of your money? Do you put it all into taxable investment accounts that you take out when needed or do you have some other avenue that you use to get a better return? I have often wondered if the stock market would be a good "savings account" to get the best growth possible…of course you could lose it all also, but the risk is worth the rewards perhaps.


I think investing can be smart definitely. I wouldn't count on using it as a "savings account" per se but you definitely don't want to dump all your money into something making 0.75-1% or less!

I have a savings account with a very small amount in it. As someone else said, it's really just to keep it separated from checking. It's psychological more than anything since it makes only pennies in interest per month. It can make sense to keep a small amount in one just so it is readily available but certainly you should look into other options as well.

rockyrock
Centurion Member
Centurion Member
 
Posts: 801
Joined: Thu Mar 21, 2013 6:06 am
Location: Ventura, CA

Re: High Yield Savings Account

Postby rockyrock » Fri Jun 05, 2015 8:24 am

Vermonster wrote:
whit wrote:When you started banking the rate to borrow was probably a lot higher too.

Sorry it's just a bit of a pet peeve of mine whenever folks go on about what used to be, but only remember the good and not the bad, in this case, mortgage rates of 9-15%.

Social security also wasn't so heavily relied on while we're on the subject, pensions used to be fat and not non-existent. 401k was a supplement alongside, savings, and

Health care used to be so good..now you're lucky if you're in a company that has it. A lot will minimize the amount of hours you work per week to 37ish..as full time.


I had just turned 18, so there was no bad to remember. I worked for my dad building houses and deposited cash into my bank every friday. My options then were a checking account at 0%, a savings at something like 1%, or a CD at 7%. Mortgages, SS, 401k, and Healthcare are irrelevant in the scope of saving money as an 18 year old.

As I was saying, a CD was my choice because I was young and needed that extra help to save my money. I wasn't really talking about how amazing CDs were, just simply pointing out that while they used to be a good option, now they offer less than some savings accounts.


I agree, when I opened my first savings account I was only 8 and I was getting >6%! I didn't know or care about mortgage rates or how much it cost to borrow money.
American Express (2005): Premier Rewards Gold & Blue Cash Preferred
Chase: Freedom & UA Club USAA: Signature Visa & American Express
Discover it Bank of Hawaii Hawaiian Airlines WEMC Synchrony Sam's MC
Navy FCU Platinum Visa Citi Double Cash & AT&T Access MC



Return to “The Lounge”

Who is online

Users browsing this forum: No registered users and 0 guests