Savings Account APR Increase?

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darkguy2
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Savings Account APR Increase?

Postby darkguy2 » Sun Feb 28, 2016 5:50 pm

Anyone know when savings accounts will be increasing their APR? Loan rates are going up now that the Fed is increasing rates, but I have not seen an increase on my Barclays savings account from 1.05%. Would be nice to be able to stash my emergency fund and savings in an account that allows it to grow faster than the inflation rate.
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

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Vattené
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Re: Savings Account APR Increase?

Postby Vattené » Mon Feb 29, 2016 9:56 am

I haven't done extensive research by any means, but I have been paying attention to savings account options recently and also haven't noticed rates going up. Funny how when they're lending out the money the rates are more quick to follow Fed increases.
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JonE
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Re: Savings Account APR Increase?

Postby JonE » Mon Feb 29, 2016 12:30 pm

Vattené wrote:I haven't done extensive research by any means, but I have been paying attention to savings account options recently and also haven't noticed rates going up. Funny how when they're lending out the money the rates are more quick to follow Fed increases.


Chase, Wells Fargo, BofA and the other big banks won't be raising anything, as they'll be pocketing the profits themselves from the interest rate hikes on credit cards. I am moving to Ally (was planning to even before this bit of news) and they are already at a pretty good 1.00% but I haven't heard anything on any hikes in the near future.
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4ktvs
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Re: Savings Account APR Increase?

Postby 4ktvs » Mon Feb 29, 2016 10:12 pm

Not likely with the fear of a sub zero interest rate incoming. That and the banks need to pocket the small interest rate bump so they can hand out even more sub prime loans.

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Dcyphrz
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Re: Savings Account APR Increase?

Postby Dcyphrz » Mon Feb 29, 2016 10:54 pm

darkguy2 wrote:Would be nice to be able to stash my emergency fund and savings in an account that allows it to grow faster than the inflation rate.

You probably already heard of these but they're worth mentioning. The US treasury sells a Series I savings bond whose interest rate is composed of a fixed rate and an inflation rate. It's meant to keep pace with (not outpace) inflation.
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kdm31091
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Re: Savings Account APR Increase?

Postby kdm31091 » Tue Mar 01, 2016 8:33 am

Unfortunately, the system is much slower to work in our favor than it is to work against us most of the time.

I wouldn't expect drastic (if any) increases in savings rates anytime soon if at all.

Bluemountain
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Re: Savings Account APR Increase?

Postby Bluemountain » Tue Mar 01, 2016 9:14 am

Many people here would probably cringe at the thought of prepaid, but I get a solid 5% APR on up to 5K with my PayPal Prepaid MasterCard....could open more for family, etc. if you wanted to do slightly more.
Cards opened in the last six months:
AMEX Gold Delta Skymiles - $2,000
Capital One Quicksilver $300 ($500 in 4 months)
Capital One Platinum $500 ($750 in 5 months)
Barclaycard $2,000
PayPal Credit (doesn't report) $600
Citi Double Cashback: $ 1200
18 years old. 640 FICO (AAoC & Inq's)

darkguy2
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Re: Savings Account APR Increase?

Postby darkguy2 » Tue Mar 01, 2016 5:46 pm

Dcyphrz wrote:You probably already heard of these but they're worth mentioning. The US treasury sells a Series I savings bond whose interest rate is composed of a fixed rate and an inflation rate. It's meant to keep pace with (not outpace) inflation.


Yeah bonds are nice, but I need it to be more liquid since it is for a emergency fund.

That PayPal one looks interesting, but I usually stay away from that company on principle.
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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Dcyphrz
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Re: Savings Account APR Increase?

Postby Dcyphrz » Wed Mar 02, 2016 1:10 pm

Bluemountain wrote:... I get a solid 5% APR on up to 5K with my PayPal Prepaid MasterCard....

Is your card the one that you open a savings account with The Bancorp Bank, link the MC to the savings, etc.? This is disclosure #7 at the bottom of this page: https://www.paypal-prepaid.com/

The Savings Account is made available to Cardholders through The Bancorp Bank; Member FDIC. To participate in the Savings Account program, Cardholder must (1) establish a PayPal Account at http://www.paypal.com, or link this prepaid card to your existing PayPal Account and (2) consent to and continue receiving communications from us in electronic form. If Cardholder is subject to Internal Revenue Service backup withholding at the time of the request to open a Savings Account, the request will be declined. Interest is calculated on the Average Daily Balance(s) of the Savings Account and is paid quarterly.

If the Average Daily Balance is $5,000.00 or less, the interest rate paid on the entire balance will be 4.91% with an Annual Percentage Yield (APY) of 5.00%.
If the Average Daily Balance is more than $5,000.00, the interest rate paid on the portion of the Average Daily Balance which exceeds $5,000.00 will be 0.49% with an APY of 0.50%, and the interest paid on the portion of the Average Daily Balance which is $5,000.00 or less will be 4.91%. The APY for this tier will range from 5.00% to 0.72%, depending on the balance in the account.

The interest rates and APYs of each tier may change. The APYs were accurate as of June 22, 2015. These are promotional rates and may change without notice pursuant to applicable law. No minimum balance necessary to open Savings Account or obtain the yield(s). Because Savings Account funds are withdrawn through the Card Account (maximum 6 such transfers per calendar month), Card Account transaction fees could reduce the interest earned on the Savings Account. Card Account and Savings Account funds are FDIC-insured through The Bancorp Bank, Member FDIC upon verification of Cardholder's identity. For purposes of FDIC coverage limit, all funds held on deposit by the Cardholder at The Bancorp Bank will be aggregated up to the coverage limit, currently $250,000.00.


It's an interesting program but I can't sort out where the 5% (minus the fees) comes from and how they can afford to pay that. I haven't earned a 5% APY since 2007 or 2008. Not knocking it, just wish I knew more about it. :)
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CarefulBuilder14
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Re: Savings Account APR Increase?

Postby CarefulBuilder14 » Wed Mar 02, 2016 2:35 pm

You can target savings account promotions. Discover only pays me 0.95%, but I got $100 for opening it and funding it with $10k. For $10k for the first year, that's effectively 1.95%.
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