Changing savings account in search for higher yield

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Changing savings account in search for higher yield

Postby Kitkat76 » Fri Jul 26, 2013 11:01 pm

After seeing another paltry interest deposit this month in my bank of america savings account, I am taking my money elsewhere. I've read some poor online reviews on Ally and Capital One 360 mostly with regard to customer service and fund access (the latter being somewhat disconcerting). I'm also curious about American Express high yield savings currently offering 0.85% on savings. Does anyone have any experience with the aforementioned banks or have any other suggestions?
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Re: Changing savings account in search for higher yield

Postby JustBill » Fri Jul 26, 2013 11:22 pm

I came to Capital One 360 via their purchase of ING Direct since we were depositors there. Absolutely no complaints about account access, fund transfer efficiency, or ease of their website. This surprises me because I expected a bad experience. Now, if they'd just get rid of Alec Baldwin as a spokesperson.
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Re: Changing savings account in search for higher yield

Postby joe8d » Fri Jul 26, 2013 11:33 pm

Ally has excellent customer service.
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Re: Changing savings account in search for higher yield

Postby Lee Saage » Fri Jul 26, 2013 11:36 pm

We have Amex high-yield savings and it's been fine. Easy funds transfer to and from the bank. There was a brief hiccup with Mint (if that is an issue) when Amex changed its online security protocol but was fixed in about a week. That in no way affected use of the account, just Mint's ability to include it in aggregations.
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Re: Changing savings account in search for higher yield

Postby chicagobear » Sat Jul 27, 2013 9:25 am

I've been using American Express and Barclays US, both of which have been fine.
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Re: Changing savings account in search for higher yield

Postby Dandy » Sat Jul 27, 2013 9:39 am

My two daughters and my wife and I use Ally Bank for several years and have no problems. We have mostly CDs but one daughter also has Ally Checking. I also use Discover Bank CDs, Savings and Money Market with no problems. I would set up the ability to transfer money from the online bank to a local bank branch checking to make sure there is a quick and easy way to get your money out. Even though I haven't used Capital One or Amex I would not be overly concerned.
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Re: Changing savings account in search for higher yield

Postby rixer » Sat Jul 27, 2013 9:52 am

GE Capital Bank is paying .90% for savings accounts now.
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Re: Changing savings account in search for higher yield

Postby sephage » Sat Jul 27, 2013 9:59 am

I've been using the amex savings account for my emergency fund for about two years. I figure that way the money is losing less to inflation than it would be in many other accounts, such as money markets (where if been keeping emergency funds for a decade or more until the rates got so low). No issues whatsoever with amex during that timeframe. They had some minor access issues around the time of a large system upgrade for a few days, but transactions could still be done via phone during that time if needed. Anyway, I've been happy with it so far.
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Re: Changing savings account in search for higher yield

Postby M_to_the_G » Sat Jul 27, 2013 3:16 pm

Changing banks and credit card companies always seemed to me to be more hassle than it was worth. Not sure if my thinking is right there, though. But constantly going through them to get a few tenths of a percentage more in savings or more rewards on a card just turns me off. I've got my agency's credit union. I do everything there. From what I can tell, the rates are fair. The service is good. And all my info is right there on one website, nicely laid out: checking, savings, money market, credit card. I easily move money among them when I need to, etc. Meh...
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Re: Changing savings account in search for higher yield

Postby ieee488 » Sat Jul 27, 2013 3:42 pm

My 1.05% APY through the internet banking division of NY Community Bank is hard to beat.
I can withdraw and deposit money at my local branch once the account is opened.
Last edited by ieee488 on Sat Jul 27, 2013 8:15 pm, edited 1 time in total.
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Re: Changing savings account in search for higher yield

Postby Dandy » Sat Jul 27, 2013 4:01 pm

Changing credit cards - I have avoided it both for hassle and possible impact on credit ratings.

I used to avoid changing banks but when you have relatively large dollars involved getting 20 or 30 basis points can make a difference especially on a longer term CD. A 30 basis point difference on a $50k 5 yr CD is $750. If you have a large CD ladder a little shopping can really pay off. I ask myself is it worth $750 for maybe a 1/2 hour of my time? The answer is usually yes. Always do the math to balance out inertia/hassle vs gain.

People (incl me) will drive out of our way to save $5 on gas but often won't drive the same distance to save $5 on a $400 TV set purchase. Banks depend on our inertia and encourage the hassle by us having convenient direct deposit, automatic payments, on line bill pay etc.
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Re: Changing savings account in search for higher yield

Postby Munir » Sat Jul 27, 2013 4:07 pm

Barclay's Savings Account 0.9%. Great service.
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Re: Changing savings account in search for higher yield

Postby Default User BR » Sun Jul 28, 2013 10:56 am

M_to_the_G wrote:Changing banks and credit card companies always seemed to me to be more hassle than it was worth.

I disagree with the second part. You don't need to "change" credit card companies. You just get a new one and start using it instead of the old one. Of course, if you have auto-payments set up you'd have to change those. With bank accounts you actually have to transfer money to get most of the benefit.


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Re: Changing savings account in search for higher yield

Postby Default User BR » Sun Jul 28, 2013 10:58 am

Dandy wrote:Changing credit cards - I have avoided it both for hassle and possible impact on credit ratings.

What hassle? Also, any impact on your credit score would be temporary due to the credit report pull, after that the new card will actually help. Besides, why do you care about it? Are you buying a house?


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Re: Changing savings account in search for higher yield

Postby pennstater2005 » Sun Jul 28, 2013 11:12 am

I just set up an Ally account online with no issues whatsoever. The checks/debit cards came within 7 days. Our first mobile check deposit was held 7-10 days but that is the norm. Our first bank to bank transfer was completed within 2 business days. They have live chat which I love if an issue were to arise. I still have my local credit union as my main bank however. Ally was is just a backup in case my credit union has an issue and my card won't work (happened recently).
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Re: Changing savings account in search for higher yield

Postby Kitkat76 » Mon Jul 29, 2013 8:30 pm

I actually decided on a Ally money market account. FDIC insured, 0.84% interest with free ATM fund access, and free checks. The only downside I can see is the lack of bill pay since it is a money market account. I'll keep my Bank of America checking for bill pay for now.
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Re: Changing savings account in search for higher yield

Postby magellan » Mon Jul 29, 2013 8:42 pm

Kitkat76 wrote:I actually decided on a Ally money market account. FDIC insured, 0.84% interest with free ATM fund access, and free checks. The only downside I can see is the lack of bill pay since it is a money market account. I'll keep my Bank of America checking for bill pay for now.

Maybe you could add a free Ally checking account for online bill pay. I have Ally checking and savings (which I think also pays .84%) and they work great together. Online transfers between savings and checking are instantaneous, so you wouldn't need to keep a lot of extra cash in there. Ally checking pays .4% interest under $15k or .75% over 15k.

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Re: Changing savings account in search for higher yield

Postby Kevin M » Mon Jul 29, 2013 10:25 pm

Ally has been great, both service and quick ACH transfers, which I do frequently. I too have savings and checking, but rarely need to use checking. I don't do web bill pay; I just have all my bills paid directly and automatically from my credit card or bank account.

Have you considered a reward checking account? You can earn 3%-4% on up to $20K or $10K. I use that as my main checking account, and will be switching from one that pays about 1.6% on up to $10K to one that pays 3% on up to $20K this week. That's about $50/month instead of about $13/month. Some folks don't like to mess around with the requirements (mostly the 12 to 15 card purchases you must make each month), but I don't find it burdensome at all.

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Re: Changing savings account in search for higher yield

Postby FedGuy » Mon Jul 29, 2013 11:51 pm

M_to_the_G wrote:Changing banks and credit card companies always seemed to me to be more hassle than it was worth. Not sure if my thinking is right there, though. But constantly going through them to get a few tenths of a percentage more in savings or more rewards on a card just turns me off.


Agreed. Whenever I switch accounts to chase a higher rate, the rate invariably drops a short time later (case in point: my Adirondack Bank HSA). If one of those accounts guaranteed the interest rate for, say, a year, I'd almost definitely switch, but I'm not going to bother when the rate could fall in a matter of weeks.
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Re: Changing savings account in search for higher yield

Postby jayjayc » Tue Jul 30, 2013 1:14 am

Another vote for Barclays US and their 0.9%. I can see how switching a checking account can be a pain, but switching a savings account isn't bad at all.
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Re: Changing savings account in search for higher yield

Postby xyz12 » Tue Jul 30, 2013 2:01 am

JustBill wrote:I came to Capital One 360 via their purchase of ING Direct since we were depositors there. Absolutely no complaints about account access, fund transfer efficiency, or ease of their website. This surprises me because I expected a bad experience. Now, if they'd just get rid of Alec Baldwin as a spokesperson.


I echo JustBill's post. I was with ING Direct for 10 years and became a CapitalOne 360 customer via the purchase. After dreading all the assumed "changes" that would be happening, I've been pleasantly surprised so far. Nothing has changed. Same great customer service, same clean website and still a fairly competitive interest rate (0.75% as of 7/30/13). I make considerable amount of transfers every month and I've never had an issue.
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