Highest APY for a Savings Account

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BrenAdams
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Joined: Wed Nov 14, 2012 4:53 pm

Highest APY for a Savings Account

Post by BrenAdams »

I currently have about $40K in an ING online savings account at 0.75% APY, but am looking for a smarter place to hold this emergency fund cash. I am an Illinois resident and I want to avoid having to open an account with myriad rules (e.g. using a debit card X times per month).

My question is whether someone can refer me to the best listing of online rates? Or more specifically, recommend a particular product? From internet research it seems some of the best options are:
- Sallie Mae Money Market: 1.05%
- Smarty Pig: 1.00%
- Ally Money Market: 0.95%
- American Express High-Yield Savings Account: 0.90%

Thanks in advance for any guidance you can provide.
Johm221122
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Re: Highest APY for a Savings Account

Post by Johm221122 »

I bonds
Tax Deffered and able to get cash in a day(after 1 year)
Just slowly buy them, so one year holding period does not affect access to your emergency fund
John
Edit found article that may help you
http://myfamilyfinances.net/2012/09/why ... -the-bank/
" t

I-Bonds are a government-backed security that can be purchased online in various denominations. Interest rates are pegged to the current rate of inflation so that you never risk losing savings to rising prices. Better still, since interest is paid by the federal government, it’s not subject to state income taxes. Federal taxes owed on your bonds can either be deferred until you exercise the bond or paid annually on your tax return."
Last edited by Johm221122 on Thu Nov 15, 2012 10:46 am, edited 1 time in total.
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CyberBob
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Re: Highest APY for a Savings Account

Post by CyberBob »

Last edited by CyberBob on Thu Nov 15, 2012 9:56 am, edited 1 time in total.
Momus
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Re: Highest APY for a Savings Account

Post by Momus »

Ally is the best with less rules, and always consistently rank highest in interest. I use them for 4 years since there were GMAC.
Johm221122
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Re: Highest APY for a Savings Account

Post by Johm221122 »

You may also place cash needs in tax advantaged accounts
http://www.bogleheads.org/wiki/Placing_ ... ed_Account
John
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G-Money
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Re: Highest APY for a Savings Account

Post by G-Money »

Don't assume I know what I'm talking about.
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kenyan
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Re: Highest APY for a Savings Account

Post by kenyan »

I wouldn't spend too much time chasing the highest rate; what is the highest now probably won't be in a few months. I'm currently with Ally, and have admittedly switched a couple of times in the past, but no longer would for a few basis points now that I'm happy with my bank. Keep in mind that 0.2% (better rate) * $40K - taxes is perhaps $50-60 bucks in a year. How much do you value your time and the hassle of switching?

If you want to structure your emergency fund differently (I bonds or whatever else), that's a different story.
Retirement investing is a marathon.
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SSSS
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Re: Highest APY for a Savings Account

Post by SSSS »

You probably don't want to go with the very highest rate. It's very likely to be a temporary gimmick, a new or shady company, or have a lot of strings attached. I'd suggest favoring companies with a long history of high rates and consumer-friendly behavior.
thebogledude
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Re: Highest APY for a Savings Account

Post by thebogledude »

What about CDs as an option. Rates are a little higher, only lose 3 months interest penalty.
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jasonv
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Location: Austin, Texas

Re: Highest APY for a Savings Account

Post by jasonv »

If you are willing to jump through a few hoop, the Mango savings account is an option (effective 4.8%)

http://thefinancebuff.com/mango-prepaid ... n-gem.html
pc95
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Re: Highest APY for a Savings Account

Post by pc95 »

According to the author, only for the first $5k invested for that mango thing - something, but not worth the hassle imo. I like American Express online - they have a very nice interface and easy bank transfers to your other banks.

I bought a 10 yr promo CD and am quite happy with it with a great rate in comparison, although I'm wondering if United States credit rating is going to pot in the next few years due to for-deficit tax revenue not even covering interest. Even a year ago I found rates for 2.5% - now 5 year CDs are not hitting 2.0% even.
And FED is supposedly holding rates this low through 2016?! That's another 4 years......
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tfb
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Re: Highest APY for a Savings Account

Post by tfb »

pc95 wrote:According to the author, only for the first $5k invested for that mango thing - something, but not worth the hassle imo. I like American Express online - they have a very nice interface and easy bank transfers to your other banks.
The OP has $40k at ING Direct earning 0.75% or $300 per year. Moving to American Express earning 0.90% will increase the interest earned by $60. Moving to somewhere earning 1.05% will increase it by $120. Moving $5k to Mango while keeping the rest where it's now will increase it by $200. If the OP is going to make one move, Mango is the most effective. Or make two moves, 1.05% + Mango = double what OP earns now at ING Direct.
Harry Sit has left the forums.
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kenyan
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Re: Highest APY for a Savings Account

Post by kenyan »

Re: Mango, from the OP -
BrenAdams wrote: I want to avoid having to open an account with myriad rules (e.g. using a debit card X times per month).
Retirement investing is a marathon.
pc95
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Re: Highest APY for a Savings Account

Post by pc95 »

Just got a special CD rate offer from DCU: https://www.dcu.org/

1.5% for 8 months (this is about equivalent to a 3 year CD rate at other places). Highest rate I've seen right now is 7 year 2% at penfed.
jonmmonson
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Re: Highest APY for a Savings Account

Post by jonmmonson »

1.24% at TIAA Direct, but they have temporary hold on new accounts.

http://tiaadirect.com/banking/bank/savings/index.html

Check back with them in next few weeks.
investor1
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Re: Highest APY for a Savings Account

Post by investor1 »

That hold has been there for a while now. What leads you to believe it will be gone in a few weeks?
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sperry8
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Re: Highest APY for a Savings Account

Post by sperry8 »

pc95 wrote:Just got a special CD rate offer from DCU: https://www.dcu.org/

1.5% for 8 months (this is about equivalent to a 3 year CD rate at other places). Highest rate I've seen right now is 7 year 2% at penfed.
That is a great rate! Sadly, I'm not eligible for membership as I live in CA. Although it does appear I can join some of the organizations, donate to them and then become a member. Seems like a bit of a hassle for this rate - although it is nice.
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pc95
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Re: Highest APY for a Savings Account

Post by pc95 »

I figured it was about $75 more over 8 months for about an hour of my time as I already have accounts at DCU. Worth it, barely.
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