The Best High Yield Savings Account

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esteen
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Joined: Thu May 23, 2019 12:31 am

The Best High Yield Savings Account

Post by esteen » Thu May 30, 2019 12:26 pm

In the Investing forum someone recently posted the news that Wealthfront is offering 2.51% APY savings account, FDIC insured up to $1M, as the race for high yield savings offerings continues. I posted a question there but upon reflection it really belongs in this forum:

I'm in the process of moving a good chunk of my emergency fund from a (virtually) non interest bearing account to a high-yield savings account. Wealthfront is technically the highest, but CitiBank (2.36%), Ally (2.20%), etc. are almost as high and aren't "middlemen" with a shaky financial structure like Wealthfront.

My question is: is there a "gold standard" high yield savings account that BH forum-goers typically recommend?

Thanks all!
-ES

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9-5 Suited
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Re: The Best High Yield Savings Account

Post by 9-5 Suited » Thu May 30, 2019 12:31 pm

I keep about $20K in HYS, so every 0.10% gain in interest rate is about $20 per year. After that realization, I just picked one and stopped switching around. Better things to worry about for 99% of people. Ally, CO360, Redneck Bank, Synchrony ... all pretty darn similar and the leader of the pack changes every now and then.

flyphotoguy
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Re: The Best High Yield Savings Account

Post by flyphotoguy » Thu May 30, 2019 12:36 pm

I've had MySavingsDirect account for a long time, I think it's 2.4% now. The difference vs other HYS is just too small to move my EF out of it.

Jack FFR1846
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Re: The Best High Yield Savings Account

Post by Jack FFR1846 » Thu May 30, 2019 12:37 pm

I keep $50k (their max) in Redneck Bank's 2.5% Megamoney account. I've noticed that when anyone else goes higher, they wait 2 or 3 weeks then match or beat them. I've been happy with them. I use Ally as a backup.
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surfstar
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Re: The Best High Yield Savings Account

Post by surfstar » Thu May 30, 2019 12:39 pm

^+1 (I don't have that much in there though)
All America / Redneck Bank - Mega Money Market Account
2.5%, up to $50k

geospatial
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Re: The Best High Yield Savings Account

Post by geospatial » Thu May 30, 2019 12:40 pm

https://www.depositaccounts.com/blog/ba ... ts-survey/

Ally is often mentioned. Even though they're not the highest rate, they have an easy to use and understand web interface and their ACH transfer limits are high. If I wasn't grandfathered into a 2.5% rate somewhere else, I'd probably also consider the Purepoint Financial 13 month no penalty CD.

FYI, it was noted on depositaccounts that All America is going to drop their rates to 2.4% soon.

Van Down By Da River
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Re: The Best High Yield Savings Account

Post by Van Down By Da River » Thu May 30, 2019 12:44 pm

We use American Express, not the highest interest rate, but we use them for our everyday credit card and are happy with them and didn't want to over-complicate things by opening up a new account with a new bank. And like the last guy said, unless you have a huge amount in there, the 0.1 - 0.2 percentage difference equals literally a few bucks a year, so my 2 cents is to just go with the bank you like

mhalley
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Re: The Best High Yield Savings Account

Post by mhalley » Thu May 30, 2019 12:44 pm

As the yield on mm has increased, I think just putting it in vanguard prime mm is close enough as opposed to trying to chase a couple of bp. It’s up to 2.4% now.

tumbleweedsusan
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Re: The Best High Yield Savings Account

Post by tumbleweedsusan » Thu May 30, 2019 12:50 pm

I switched from Citi (.12%) to Capital One 360 last year.
I love it. The app & website are nicely designed and easy to use. No international exchange fee, Citibank forces you to have $50,000 to get this privilege.

2% for balances over $10,000.

Wish I did it years ago.

greenflamingo
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Re: The Best High Yield Savings Account

Post by greenflamingo » Thu May 30, 2019 12:55 pm

I use AMEX. They're high enough, and have been competitive with the best rates for several years now. I value having my time (compared to chasing rates) and having accounts all linked/verified with one another so I can make a quick transfer more than chasing a few bucks a year.

withrye
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Re: The Best High Yield Savings Account

Post by withrye » Thu May 30, 2019 12:57 pm

A few months back I switched from CapOne360 to SoFi Money.

2.25% on all dollars, and the account acts like checking with a debit card, checks, ATM reimbursement, bill pay, etc. No direct deposit or transaction hoops.

At CapOne 360 I only for 2% in the Money Market account ($10k minimum) and 1% in savings and 0.2% in checking. So it was three accounts for a lower yield and less flexibility regarding moving money between MM and savings to checking.

aristotelian
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Re: The Best High Yield Savings Account

Post by aristotelian » Thu May 30, 2019 1:11 pm

They are pretty much the same. Capital One and BBVA Compass have bonus offers for MM accounts around 2.4%.

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jakehefty17
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Re: The Best High Yield Savings Account

Post by jakehefty17 » Thu May 30, 2019 1:36 pm

Ally is a good all-around option, I used them for a while. They stay competitive and the interface is intuitive. Good rates and customer service.

I just needed a checking account and taxable account though. If I had need for a HYSA and/or CDs, I would definitely consider Ally.
"The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." -Charles Bukowski

patrick
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Re: The Best High Yield Savings Account

Post by patrick » Thu May 30, 2019 1:37 pm

I'd suggest looking at https://www.doctorofcredit.com/high-int ... gs-to-get/ for all of the good options. My current favorite is the Orion rewards checking account, which pays higher than savings (subject to some limits of course).

atdharris
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Re: The Best High Yield Savings Account

Post by atdharris » Thu May 30, 2019 1:40 pm

I use Amex for mine. They aren't the highest, but they have always provided me with the best customer service and a .1% difference is not a huge deal for me to keep moving money to X number of accounts.

MotoTrojan
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Re: The Best High Yield Savings Account

Post by MotoTrojan » Thu May 30, 2019 1:45 pm

Fidelity CMA tied to brokerage. The slightly lower yield is made up by my “checking” account balance accruing it too. Brokerage allows direct deposits to immediately go into SPAXX and I’ll occasionally move to SPRXX for a tad more yield.

Emergency Fund can also be rolled in t-bills to get a tax-adjusted yield closer to 2.6%.

itsgot8
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Re: The Best High Yield Savings Account

Post by itsgot8 » Thu May 30, 2019 1:53 pm

Barclay's and Marcus are good options too, for HYS.

GlennK
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Re: The Best High Yield Savings Account

Post by GlennK » Thu May 30, 2019 2:21 pm

LIve Oak Bank (2.3% currently) generally remains competitive also. Especially their 1 year CDs.

Only point of caution is it took me a while to get signed up with them. Not sure that was normal or not but now that I am signed up online, easy to use web site.

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Ice-9
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Re: The Best High Yield Savings Account

Post by Ice-9 » Thu May 30, 2019 2:30 pm

One that often gets overlooked is FNBODirect.com currently with 2.25% savings and 0.65% checking (with no hoops.)

Back in 2005-6, I was a serious rate chaser for whatever reason. I opened accounts with no less than five different online banks trying to get the best rate. Of those, most have lowered their rates over time, and I have a number of old accounts with nothing in them because the rate is no longer competitive.

For what it's worth, FNBO Direct is the only one of those accounts of mine that has stayed competitive the entire decade+ since I was a rate chaser, and it's where I've gotten used to putting my cash that I want more liquid than Treasury Direct.

mariezzz
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Re: The Best High Yield Savings Account

Post by mariezzz » Thu May 30, 2019 2:45 pm

There are threads about this at least weekly. I'd suggest doing a few searches to find them.

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Phineas J. Whoopee
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Re: The Best High Yield Savings Account

Post by Phineas J. Whoopee » Thu May 30, 2019 2:48 pm

Echoing geospatial upthread, the US gold standard -- if I may use the expression -- for looking such things up is Deposit Accounts.

If by best you mean the one that consistently has a higher APY than all the others, without restrictions, there ain't none. You deposits your money and you takes your choice.

PJW

retiredflyboy
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Re: The Best High Yield Savings Account

Post by retiredflyboy » Thu May 30, 2019 4:06 pm

I use Goldman (Marcus) Sachs and Ally bank.
Facts are stubborn things. Everything works until it doesn’t.

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greg24
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Re: The Best High Yield Savings Account

Post by greg24 » Thu May 30, 2019 4:12 pm

Vanguard Prime Money Market.

Topic Author
esteen
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Joined: Thu May 23, 2019 12:31 am

Re: The Best High Yield Savings Account

Post by esteen » Thu May 30, 2019 11:40 pm

Thanks for all the replies everyone, this is super helpful. I see there is no clear "Top 5" but a lot of players that have varying levels of yield, accessibility, user interface highlights, and 'staying power'. I'll just have to choose one that is a decent marriage of all aspects and stick to it.

-ES

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Sandtrap
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Re: The Best High Yield Savings Account

Post by Sandtrap » Thu May 30, 2019 11:42 pm

mhalley wrote:
Thu May 30, 2019 12:44 pm
As the yield on mm has increased, I think just putting it in vanguard prime mm is close enough as opposed to trying to chase a couple of bp. It’s up to 2.4% now.
+1
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Kmzizzle
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Re: The Best High Yield Savings Account

Post by Kmzizzle » Fri May 31, 2019 12:23 am

VUSXX

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