High Yield Savings Account

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darkguy2
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High Yield Savings Account

Postby darkguy2 » Sat May 30, 2015 10:24 pm

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.
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whit
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Re: High Yield Savings Account

Postby whit » Sun May 31, 2015 12:20 am

Shop around more, a local cu offers high yield checking account that has been bumped down to about 1.75 but it's capped at 20k and has conditions of dd, 10 swipes a month..which isn't hard if you use it to buy yourself a cup of coffee or tea at least twice, thrice, a week.

Personally at what they're capping you at its not worth it, you're better off doing a cash bonus offer..it gets 1099 but so does your interest earned on the savings deposit account.

darkguy2
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Re: High Yield Savings Account

Postby darkguy2 » Sun May 31, 2015 3:15 pm

Yea I looked at all of the CUs around me and all of them are 0.75% or lower. I know that the $1K cap is low, but it is a nice bonus on that extra cash since I get 1% no matter what.
Discover IT - $5,700
Chase Freedom - $5,700
Costco Citi - $13,000
Sallie Mae - $4,000
Chase Sapphire Preferred - $6,000
Chase Sapphire Reserve - $19,500
Citi Double Cash - $6,500
Amex BCE - $13,000

FICOs: Discover (777), SallieMae (764), Amex (767), Citi (772)
FAKOs: CK- TU (760), EQ (760)

kdm31091
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Re: High Yield Savings Account

Postby kdm31091 » Sun May 31, 2015 7:20 pm

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)

darkguy2
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Re: High Yield Savings Account

Postby darkguy2 » Sun May 31, 2015 10:07 pm

I know that 1% is not really high yield, but in relation to current rates it is. Unfortunately I also require my capital to be quite liquid while I am in college since I have to pay off living expenses and school costs on a limited income. So 1% is much better than not making anything off it.
Discover IT - $5,700
Chase Freedom - $5,700
Costco Citi - $13,000
Sallie Mae - $4,000
Chase Sapphire Preferred - $6,000
Chase Sapphire Reserve - $19,500
Citi Double Cash - $6,500
Amex BCE - $13,000

FICOs: Discover (777), SallieMae (764), Amex (767), Citi (772)
FAKOs: CK- TU (760), EQ (760)

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obxfisherman
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Re: High Yield Savings Account

Postby obxfisherman » Sun May 31, 2015 10:37 pm

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.
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Vermonster
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Re: High Yield Savings Account

Postby Vermonster » Mon Jun 01, 2015 8:05 am

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%.
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takeshi
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Re: High Yield Savings Account

Postby takeshi » Mon Jun 01, 2015 8:22 am

obxfisherman wrote: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.

Definitely do your own due diligence but I recently started a taxable account with Vanguard. Aiming to eventually have a 3 fund portfolio (Google for more info) but it's currently 1 index fund until we reach the minimum to have it converted into Admiral Shares. Again, I'm not advocating this as a solution for everyone and each needs to figure out what works for the individual.

Not everything ends up in the Vanguard account. We keep a liquid reserve in a couple of savings accounts but they are not high yield as they are with the same bank that we use for our checking.

rockyrock
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Re: High Yield Savings Account

Postby rockyrock » Mon Jun 01, 2015 8:58 am

In this day and age, Savings accounts are just an easy way to separate funds from Checking while still keeping it liquid. I have four savings accounts, three checking accounts and one MM account. I think 1% is the highest yield but it's just an easy way for me to track spending. I have no checks and no ATM/Debit card for my C&MM accounts at my local bank. This is my primary liquid "savings" and I think it's about 0.75%. The other savings accounts are just for show I guess...lol.

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whit
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Re: High Yield Savings Account

Postby whit » Mon Jun 01, 2015 10:24 pm

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.



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