Where should I save my money?

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thethinker
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Where should I save my money?

Post by thethinker » Fri Jul 28, 2017 2:40 pm

My wife and I are saving up some money to make a big purchase so I need a safe place to put this money. I need 0 risk and I realize that means nearly 0% in returns. A friend told me Ally bank is the best place as I can get a little over 1% return on a CD and there is no penalty for early withdraw. Does anyone know if this really is the best place, or if there is maybe a better option? I expect to be putting away a chunk at a time for about 3 years, maybe 4.

Any advice would be much appreciated.

Indexboss
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Re: Where should I save my money?

Post by Indexboss » Fri Jul 28, 2017 2:45 pm

Ally's 1.5 percent no penalty CD is a good deal (25K minimum). Capital one 360 has a MM account that was offerring a $200 bonus, started off at 1.00% for accounts more than 10K, they raised the rate to %1.10. Not sure if they still have the bonus. The MM account is a little more flexible and you can add funds to it. Some longer term CD's are offering around 2%.

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simplesimon
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Re: Where should I save my money?

Post by simplesimon » Fri Jul 28, 2017 2:47 pm

Ally's no penalty CD is 11-months and yields 1.50% for balances over $25k. That's the best you can do for 11-months unless you commit to a longer term.

Ally's 5-year CD has a 2.25% yield.

Check out https://www.depositaccounts.com/cd/ which aggregates online CD rates. You'll see that Ally is pretty competitive, but you could do very slightly better elsewhere if you really wanted to.

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willthrill81
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Re: Where should I save my money?

Post by willthrill81 » Fri Jul 28, 2017 3:31 pm

A still risk-free option that will require some legwork on your part is to use the savings to open up bank accounts (i.e. checking, savings, and/or money market) for sign-up bonuses. A lot of us opened Capital One 360 money market accounts with $10k and got a $200 bonus, which is equivalent to a 2% interest rate, only your money isn't tied up there for a year, so the effective rate is much higher.
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tennisplyr
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Re: Where should I save my money?

Post by tennisplyr » Fri Jul 28, 2017 4:16 pm

I'm keeping safe money in Ally savings for 1.15%.....no minimum, completely liquid, FDIC insured. There are others like this.
Those who move forward with a happy spirit will find that things always work out.

amateurnovice
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Re: Where should I save my money?

Post by amateurnovice » Fri Jul 28, 2017 6:14 pm

My Synchrony Bank savings is currently 1.2%. Better than a CD because you can always add to it periodically. Dump in the lump sum and keep contributing. I've used Ally as well in the past but I find Synchrony stays ahead on rates. Rather use a savings account than a CD any day, especially if the savings account pays more.

pascalwager
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Re: Where should I save my money?

Post by pascalwager » Fri Jul 28, 2017 7:36 pm

amateurnovice wrote:My Synchrony Bank savings is currently 1.2%. Better than a CD because you can always add to it periodically. Dump in the lump sum and keep contributing. I've used Ally as well in the past but I find Synchrony stays ahead on rates. Rather use a savings account than a CD any day, especially if the savings account pays more.
+1. Been at Synchrony a few years now. HY Savings account works well for me.
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FiveK
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Re: Where should I save my money?

Post by FiveK » Fri Jul 28, 2017 7:37 pm

The Best Online Savings Accounts (updated monthly) is another decent internet resource for this question.

student
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Re: Where should I save my money?

Post by student » Fri Jul 28, 2017 8:17 pm

GS Bank has 1.9% for 3-year CDs.

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