InCreditWeTrust wrote:Yeah I don't disagree with you, I think Discover Savings is definitely a solid choice. Good customer service and trust also go a long way and outweighs a measly .05 difference. Not to mention Discover is a US company and is more reputable and has been around longer than some of these new banks offering 1%+. However, some people's main goal is to find the highest yield savings account, and there are some banks that offer like 1.05% some even more with stipulations.
You may want to look into investing in a mutual fund, if you feel that you have excess in your savings account. Well managed mutual funds are generally safe investments and a good ROI.
The stipulations can be pretty extreme. Some banks advertise 2% or more, but only pay that rate on up to maybe $10k in balances...and even then, only if you have direct deposit, a minimum balance, use their debit card 5 times a month, etc.
I favor index ETFs over traditional mutual funds as my "autopilot" investments, but be sure whatever money you put into either is truly excess to your liquid needs and that you understand the risks.
Context matters a lot if you're going to call mutual funds "generally safe investments [with] a good ROI"...even if you're diversified, if you buy at a market peak, it could potentially take 10, 20 (or more) years to break even in terms of inflation-adjusted purchasing power. I've held some investments for a decade, and most for 5+ years, but I'm very unusual in that respect. That's not typical investor behavior.