New Savings and Checking Options

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Cosmo Kramer
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Joined: Tue Sep 24, 2019 3:55 pm

New Savings and Checking Options

Post by Cosmo Kramer »

I want to find a place to park my emergency fund, and I am noticing with all of these online savings accounts popping up that I better hop on board. I also would like to switch to a better checking account as I cannot stand TD bank. I spent some time on nerdwallet and read up on the reviews and options. I was wondering what your thoughts were...

-I want to be able to have more than one savings account (I plan to keep my 6-month emergency fund in one savings account and the fund I am using to save to buy my car out in cash in another)
- I am looking at CIT because they are offering 2.1% right now if I move a minimum 100$ per month into the savings account
- Betterment's new online everyday savings account has also piqued my interest
- As far as checking accounts go, I like what I am seeing at Radius, while also intrigued by Betterment's checking account coming out soon

Anybody have any suggestions? Having a physical bank is not important to me. I want to simply protect my savings against losing its spending power due to inflation while also being in an FDIC insured institution. As far as the checking account is concerned I want an easy and quick account with no minimums or fees.
bloom2708
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Re: New Savings and Checking Options

Post by bloom2708 »

Ally and Capital One 360 are options.

Rates are mostly under 2% now most places.

It is still handy to have a local brick and mortar bank for some services.
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retired@50
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Re: New Savings and Checking Options

Post by retired@50 »

Depending on where you live, you might qualify for a credit union checking account. The insurance is NCUA instead of FDIC, but I would imagine that doesn't matter too much. My checking account offers interest of 2% on balances between 0 - $25,000 if I have at least one automatic deposit or withdrawal each month AND spend $300 from the account. These are relatively easy requirements to meet, so I've earned the interest every month since I opened the account.
The account also offers access to the credit union ATM nationwide network of over 25,000 ATMs, plus will reimburse for other banks ATM fees.
To find an account in your area, look for "high yield checking account" in your state. Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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RickBoglehead
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Re: New Savings and Checking Options

Post by RickBoglehead »

Rates have been falling. Picking a bank for high checking or savings rates has the risk that they drop the rates.

I often laugh when someone switches banks for rates. The difference between 2.1% and 2% on $100,000 compounded daily is $102.06. How many are moving 6 figures vs $20,000 and getting $20.41 more a year?
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Nyarlathotep
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Re: New Savings and Checking Options

Post by Nyarlathotep »

Capital One has a bonus offer right now that makes it an excellent choice. Open a 360 Performance Savings account and fund it with $10,000 to get a $200 bonus, or fund it with $100k to get a $1,000 bonus. The 1.9% interest rate is very competitive, as well, so there's really no downside to moving some cash here to get the bonus money.

(NOTE: Based on the wording in the email offer I was sent, you might have to be an existing Capital One customer to receive the bonus.)
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Wiggums
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Re: New Savings and Checking Options

Post by Wiggums »

RickBoglehead wrote: Sat Oct 19, 2019 4:33 pm Rates have been falling. Picking a bank for high checking or savings rates has the risk that they drop the rates.

I often laugh when someone switches banks for rates. The difference between 2.1% and 2% on $100,000 compounded daily is $102.06. How many are moving 6 figures vs $20,000 and getting $20.41 more a year?
You make a very good point. Moving from .01% to 3% was nice while it lasted this year.
"I started with nothing and I still have most of it left."
Jags4186
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Re: New Savings and Checking Options

Post by Jags4186 »

Charles Schwab for checking—especially if they have offices nearby as they can do everything a bank can do but handle cash. Cap1 360 is running an up to $1000 savings bonus promotion right now and 1.9%.

The goal with the savings accounts isn’t to switch to go from 1.9% to 2%, the goal is to snag a $200+ bonus when switching. As long as you don’t keep much more than $50k in cash you can easily get 8% on your money when factoring in bonuses.
HEDGEFUNDIE
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Re: New Savings and Checking Options

Post by HEDGEFUNDIE »

RickBoglehead wrote: Sat Oct 19, 2019 4:33 pm Rates have been falling. Picking a bank for high checking or savings rates has the risk that they drop the rates.

I often laugh when someone switches banks for rates. The difference between 2.1% and 2% on $100,000 compounded daily is $102.06. How many are moving 6 figures vs $20,000 and getting $20.41 more a year?
My wife and I are earning $2400/yr in interest with our Orion CU 4% accounts.

Still laughing?
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whodidntante
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Re: New Savings and Checking Options

Post by whodidntante »

RickBoglehead wrote: Sat Oct 19, 2019 4:33 pm Rates have been falling. Picking a bank for high checking or savings rates has the risk that they drop the rates.

I often laugh when someone switches banks for rates. The difference between 2.1% and 2% on $100,000 compounded daily is $102.06. How many are moving 6 figures vs $20,000 and getting $20.41 more a year?
I find bank bonuses are a lot more lucrative than interest. You can earn them by opening new checking accounts and savings accounts and meeting the offer terms. The Simple Finance (BBVA) $500 bonus is pretty sweet for a savings account. The base interest is also competitive at 2.15%. I had to scare up some money to do it because I don't normally keep cash. The "protected goals" feature of the account may also meet the OP's desire to create buckets.

https://www.doctorofcredit.com/best-ban ... t-bonuses/
HEDGEFUNDIE
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Re: New Savings and Checking Options

Post by HEDGEFUNDIE »

whodidntante wrote: Sat Oct 19, 2019 5:50 pm
RickBoglehead wrote: Sat Oct 19, 2019 4:33 pm Rates have been falling. Picking a bank for high checking or savings rates has the risk that they drop the rates.

I often laugh when someone switches banks for rates. The difference between 2.1% and 2% on $100,000 compounded daily is $102.06. How many are moving 6 figures vs $20,000 and getting $20.41 more a year?
I find bank bonuses are a lot more lucrative than interest. You can earn them by opening new checking accounts and savings accounts and meeting the offer terms. The Simple Finance (BBVA) $500 bonus is pretty sweet for a savings account. The base interest is also competitive at 2.15%. I had to scare up some money to do it because I don't normally keep cash. The "protected goals" feature of the account may also meet the OP's desire to create buckets.

https://www.doctorofcredit.com/best-ban ... t-bonuses/
Two that I have used to great effect

Bank of the West $250 bonus for 3 months direct deposit of $1000 each month
Wells Fargo $400 bonus for 3 months direct deposit of $3000 each month

I will make close to $4k this year through rate and bonus chasing.
delrinson
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Re: New Savings and Checking Options

Post by delrinson »

Redneck Bank still at 2.4%… Always seems to have the best consistent rate… Only for the first $50,000 though.
7eight9
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Re: New Savings and Checking Options

Post by 7eight9 »

delrinson wrote: Sat Oct 19, 2019 7:14 pm Redneck Bank still at 2.4%… Always seems to have the best consistent rate… Only for the first $50,000 though.
Unfortunately that rate will only be for a couple more days. Dropping to 2.25% on 10.22.19. https://redneck.bank/accounts/mega-money-market

Still a very competative rate.
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aristotelian
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Re: New Savings and Checking Options

Post by aristotelian »

Simple Finance looks very compelling. $250 on $10K deposit with 2.15% interest and only 3 month holding period. https://www.simple.com/offer-v1
bjames310
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Re: New Savings and Checking Options

Post by bjames310 »

I can’t find the capital one bonus anywhere. Anyone have a link?
7eight9
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Re: New Savings and Checking Options

Post by 7eight9 »

bjames310 wrote: Sat Oct 19, 2019 8:08 pm I can’t find the capital one bonus anywhere. Anyone have a link?
From Doctor of Credit (good resource for finding bank bonuses) --- https://www.doctorofcredit.com/capital- ... 00-150000/
I guess it all could be much worse. | They could be warming up my hearse.
lakpr
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Re: New Savings and Checking Options

Post by lakpr »

Just read in another thread that PSECU (Pennsylvania State Employees Credit Union) is offering a 3.25% 3 year CD. You need to donate some $ to the Pennsylvania Recreation and Parks Society (PRPS) to become a member. Just about the best rate there is, that does not have any adfitional requirements (set it and forget it)

In case of emergency, break the CD, penalty is 180 days of interest whether earned or unearned. But hopefully you won't need to really use this emergency fund for the next 3 years.

You could also use HedgeFundie's recommendation of Orion FCU if you are ok with meeting debit card spending requirements. As he noted, it is potentially $2400 interest per year ($30k per person, 4% per year = $1200, for a married couple that is $2400)
bjames310
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Re: New Savings and Checking Options

Post by bjames310 »

7eight9 wrote: Sat Oct 19, 2019 8:14 pm
bjames310 wrote: Sat Oct 19, 2019 8:08 pm I can’t find the capital one bonus anywhere. Anyone have a link?
From Doctor of Credit (good resource for finding bank bonuses) --- https://www.doctorofcredit.com/capital- ... 00-150000/
Thanks! 150k though for the $1000 bonus
Dandy
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Re: New Savings and Checking Options

Post by Dandy »

I would recommend Alliant Credit Union. Decent rates, and good ratings on depositaccounts.com. Often when you look at the customer ratings for banks and credit unions you get a wake up call especially on not getting acceptable service, difficulty in getting your money out without a hassle, hidden fees, etc.
Tdubs
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Re: New Savings and Checking Options

Post by Tdubs »

HEDGEFUNDIE wrote: Sat Oct 19, 2019 5:44 pm
RickBoglehead wrote: Sat Oct 19, 2019 4:33 pm Rates have been falling. Picking a bank for high checking or savings rates has the risk that they drop the rates.

I often laugh when someone switches banks for rates. The difference between 2.1% and 2% on $100,000 compounded daily is $102.06. How many are moving 6 figures vs $20,000 and getting $20.41 more a year?
My wife and I are earning $2400/yr in interest with our Orion CU 4% accounts.

Still laughing?
Intrigued with their checking account. $30k is a nice amount to earn 4%. Seems like a more lucrative version of Redneck, though rates on every other account they offer is lousy. Do you spread your money over multiple institutions?
IowaFarmWife
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Re: New Savings and Checking Options

Post by IowaFarmWife »

BankFirst in Nebraska and Iowa offers 2.5% interest on checking accounts if you have direct deposit, agree to paperless statements, and make 10 debit card purchases per month.
"A nickel ain't worth a dime anymore." Yogi Berra's financial wisdom.
stoptothink
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Re: New Savings and Checking Options

Post by stoptothink »

aristotelian wrote: Sat Oct 19, 2019 7:59 pm Simple Finance looks very compelling. $250 on $10K deposit with 2.15% interest and only 3 month holding period. https://www.simple.com/offer-v1
We'll see, I just opened one up. I'm pretty much out of credit card churning opportunities so this will be my first bank bonus.
invest4
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Re: New Savings and Checking Options

Post by invest4 »

As suggested by bloom2708 , there is some utility to having a local bank account. You may easily avail yourself to some services including something that may require an in person visit / signature (notary for example)...convenience.

I think Capital One 360 is solid. Credit unions have their charms (particularly when it comes to better than average deposit rates from time to time). However, in my experience, I have also some of them to be a bit clunky / slow or having other restrictions due to their size.
HEDGEFUNDIE
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Re: New Savings and Checking Options

Post by HEDGEFUNDIE »

Tdubs wrote: Sun Oct 20, 2019 6:46 am
HEDGEFUNDIE wrote: Sat Oct 19, 2019 5:44 pm
RickBoglehead wrote: Sat Oct 19, 2019 4:33 pm Rates have been falling. Picking a bank for high checking or savings rates has the risk that they drop the rates.

I often laugh when someone switches banks for rates. The difference between 2.1% and 2% on $100,000 compounded daily is $102.06. How many are moving 6 figures vs $20,000 and getting $20.41 more a year?
My wife and I are earning $2400/yr in interest with our Orion CU 4% accounts.

Still laughing?
Intrigued with their checking account. $30k is a nice amount to earn 4%. Seems like a more lucrative version of Redneck, though rates on every other account they offer is lousy. Do you spread your money over multiple institutions?
Orion is our primary account for daily cash flow. We also have one of our paychecks go into First Republic where we have our mortgage.
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