Barclays Savings Rate Drops to 1.9% (October 9, 2019)

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obafgkm
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Barclays Savings Rate Drops to 1.9% (October 9, 2019)

Post by obafgkm » Wed Oct 09, 2019 4:11 pm

Barclays savings rate is now 1.9%, as of today, October 9, 2019.

student
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Re: Barclays Savings Rate Drops to 1.9% (October 9, 2019)

Post by student » Wed Oct 09, 2019 4:26 pm

Same as Marcus.

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Re: Barclays Savings Rate Drops to 1.9% (October 9, 2019)

Post by neilpilot » Wed Oct 09, 2019 4:38 pm

student wrote:
Wed Oct 09, 2019 4:26 pm
Same as Marcus.
....and Capital One

index2max
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Re: Barclays Savings Rate Drops to 1.9% (October 9, 2019)

Post by index2max » Thu Oct 10, 2019 12:28 pm

Both my credit unions have held the rates they pay on their high-interest checking accounts above 2%... one at 2.02% and the other a 3.5% :D

At a Bank you are just a customer with a dollar sign over your head. They have no mercy nickel and diming with silly fees.

At a credit union, you are not a customer, but a member in a cooperative where it is one man, one vote.

Considering credit unions in the US don’t pay corporate tax because they are non-profits, that means that by default they can afford to pass down more savings to their members then a bank with an equivalent amount of assets in the form of higher interest rates on deposits and lower borrowing rates on loans.

Wish I made the switch sooner!

batpot
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Re: Barclays Savings Rate Drops to 1.9% (October 9, 2019)

Post by batpot » Thu Oct 10, 2019 12:46 pm

DOC still seems to have most up to date info:
https://www.doctorofcredit.com/high-int ... gs-to-get/

Highly doubt the ones offering greater than 2.3% will stay there for long, though Brio and Vio have been at the top for a few months now.

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greg24
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Re: Barclays Savings Rate Drops to 1.9% (October 9, 2019)

Post by greg24 » Thu Oct 10, 2019 1:13 pm

Vanguard Prime Money Market 1.97%

batpot
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Re: Barclays Savings Rate Drops to 1.9% (October 9, 2019)

Post by batpot » Tue Oct 15, 2019 7:09 pm

batpot wrote:
Thu Oct 10, 2019 12:46 pm
DOC still seems to have most up to date info:
https://www.doctorofcredit.com/high-int ... gs-to-get/

Highly doubt the ones offering greater than 2.3% will stay there for long, though Brio and Vio have been at the top for a few months now.
Ha, not any more.
And they changed mid month...annoying for anyone holding funds with them.

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Kevin M
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Re: Barclays Savings Rate Drops to 1.9% (October 9, 2019)

Post by Kevin M » Tue Oct 15, 2019 7:18 pm

greg24 wrote:
Thu Oct 10, 2019 1:13 pm
Vanguard Prime Money Market 1.97%
SEC yield now down to 1.96%, but you want to look at compound yield if comparing to APY at a bank or credit union. At 1.96% SEC yield, compound yield is 1.98%.

Kevin
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Re: Barclays Savings Rate Drops to 1.9% (October 9, 2019)

Post by Kevin M » Tue Oct 15, 2019 7:26 pm

index2max wrote:
Thu Oct 10, 2019 12:28 pm
Both my credit unions have held the rates they pay on their high-interest checking accounts above 2%... one at 2.02% and the other a 3.5% :D
Are these reward checking accounts (RCAs)? If so, what are the balance caps? I have an RCA at a bank earning 3.33%, but balance cap is $25K.
index2max wrote:
Thu Oct 10, 2019 12:28 pm
At a Bank you are just a customer with a dollar sign over your head. They have no mercy nickel and diming with silly fees.

At a credit union, you are not a customer, but a member in a cooperative where it is one man, one vote.

Considering credit unions in the US don’t pay corporate tax because they are non-profits, that means that by default they can afford to pass down more savings to their members then a bank with an equivalent amount of assets in the form of higher interest rates on deposits and lower borrowing rates on loans.

Wish I made the switch sooner!
I have a savings account at a local B&M bank paying 2.50% APY until July 2020. Some credit unions have good rates, some have horrible rates, and some are in between. Ditto for banks. I have accounts at many banks and credit unions, and none of them consistently has the best rates. Many offered a great CD rate at some point in the past (otherwise I wouldn't have opened an account), but don't offer any competitive rates now.

Kevin
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Re: Barclays Savings Rate Drops to 1.9% (October 9, 2019)

Post by batpot » Tue Oct 15, 2019 7:27 pm

Kevin M wrote:
Tue Oct 15, 2019 7:18 pm
greg24 wrote:
Thu Oct 10, 2019 1:13 pm
Vanguard Prime Money Market 1.97%
SEC yield now down to 1.96%, but you want to look at compound yield if comparing to APY at a bank or credit union. At 1.96% SEC yield, compound yield is 1.98%.

Kevin
You can beat that easily with an FDIC insured bank; why is this even on the table?

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Re: Barclays Savings Rate Drops to 1.9% (October 9, 2019)

Post by Kevin M » Tue Oct 15, 2019 7:46 pm

batpot wrote:
Tue Oct 15, 2019 7:27 pm
Kevin M wrote:
Tue Oct 15, 2019 7:18 pm
greg24 wrote:
Thu Oct 10, 2019 1:13 pm
Vanguard Prime Money Market 1.97%
SEC yield now down to 1.96%, but you want to look at compound yield if comparing to APY at a bank or credit union. At 1.96% SEC yield, compound yield is 1.98%.

Kevin
You can beat that easily with an FDIC insured bank; why is this even on the table?
Because this thread is about Barclays bank dropping their rate to 1.90% APY, and 1.98% > 1.90%.

Because some people don't like to keep switching banks to get the highest rate. Yes, I see three banks offering 2.40% at DepositAccounts, but I don't already have accounts at any of those banks. I do happen to have a savings account at a local bank earning 2.50% APY, but that's no longer available, and was a local deal when it was, so it doesn't do anyone else here any good.

Because some banks have low ACH limits, so if you want to move large amounts, you must initiate the transactions from a brokerage or another bank (with a higher ACH limit). Not a problem with a Vanguard money market fund.

Because you might have an IRA at Vanguard, and it's inconvenient to do IRA transfers just to get a higher yield on cash.

Kevin
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Re: Barclays Savings Rate Drops to 1.9% (October 9, 2019)

Post by index2max » Tue Oct 29, 2019 6:33 pm

Kevin M wrote:
Tue Oct 15, 2019 7:26 pm
index2max wrote:
Thu Oct 10, 2019 12:28 pm
Both my credit unions have held the rates they pay on their high-interest checking accounts above 2%... one at 2.02% and the other a 3.5% :D
Are these reward checking accounts (RCAs)? If so, what are the balance caps? I have an RCA at a bank earning 3.33%, but balance cap is $25K.
Yes, they are reward-based checking accounts.

Credit union #1 pays 2% annual interest. I must maintain a minimum balance of $2,000 or else pay a $20 monthly fee. I must also make 12 purchases per month combined on my credit and/or debit card with them. Each purchase can be as small as one penny. They don't care. Their high-rate checking account pays 2% annual interest up to $20,000.

Credit union #2 has a few tiers of high-rate checking accounts. I chose the highest tier. It pays 3.5% annual interest up to $15,000. They require me to make 20 transactions per month. Again, each purchase can be as small as one penny. I must also have at least one direct deposit of $250 each month.

Naturally both the credit unions require I enroll in electronic statements and log into my account once per month so my checking accounts are "active".

I know some banks can pay a higher yield on my money, but I don't trust big banks anymore. I like the cooperative spirit of credit unions more and sacrifice nothing on service or ATM access compared to my old Mega Bank.
Kevin M wrote:
Tue Oct 15, 2019 7:26 pm
index2max wrote:
Thu Oct 10, 2019 12:28 pm
At a Bank you are just a customer with a dollar sign over your head. They have no mercy nickel and diming with silly fees.

At a credit union, you are not a customer, but a member in a cooperative where it is one man, one vote.

Considering credit unions in the US don’t pay corporate tax because they are non-profits, that means that by default they can afford to pass down more savings to their members then a bank with an equivalent amount of assets in the form of higher interest rates on deposits and lower borrowing rates on loans.

Wish I made the switch sooner!
I have a savings account at a local B&M bank paying 2.50% APY until July 2020. Some credit unions have good rates, some have horrible rates, and some are in between. Ditto for banks. I have accounts at many banks and credit unions, and none of them consistently has the best rates. Many offered a great CD rate at some point in the past (otherwise I wouldn't have opened an account), but don't offer any competitive rates now.

Kevin
What does "B&M" bank mean?

Yes, you're right. Some credit unions pay close to nothing in interest for savings or checking accounts. Even on certificates of deposit!

I've noticed midsize local banks pay comparable interest rates compared to the best credit unions. Mega banks tend to pay next to nothing. Guess they figure their plethora of branches and name recognition will bring in customers who don't shop around.

NCUA insurance has the same max as FDIC insurance ($250k), so it obviously comes down to personal preference for which to choose.

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Re: Barclays Savings Rate Drops to 1.9% (October 9, 2019)

Post by Kevin M » Tue Oct 29, 2019 6:58 pm

index2max wrote:
Tue Oct 29, 2019 6:33 pm
Kevin M wrote:
Tue Oct 15, 2019 7:26 pm
index2max wrote:
Thu Oct 10, 2019 12:28 pm
Both my credit unions have held the rates they pay on their high-interest checking accounts above 2%... one at 2.02% and the other a 3.5% :D
Are these reward checking accounts (RCAs)? If so, what are the balance caps? I have an RCA at a bank earning 3.33%, but balance cap is $25K.
Yes, they are reward-based checking accounts.

Credit union #1 pays 2% annual interest. I must maintain a minimum balance of $2,000 or else pay a $20 monthly fee. I must also make 12 purchases per month combined on my credit and/or debit card with them. Each purchase can be as small as one penny. They don't care. Their high-rate checking account pays 2% annual interest up to $20,000.
Two percent is not very good for an RCA (reward checking account)--you can earn 2% in an Ally no-penalty CD for 11 months, and do a penalty free withdrawal after six days. No balance cap, and no hoops to jump through.
index2max wrote:
Tue Oct 29, 2019 6:33 pm
Credit union #2 has a few tiers of high-rate checking accounts. I chose the highest tier. It pays 3.5% annual interest up to $15,000. They require me to make 20 transactions per month. Again, each purchase can be as small as one penny. I must also have at least one direct deposit of $250 each month.
The 3.5% rate is good, but the $15K balance cap is kind of low, and 20 purchases is nuts--most RCAs require 10-12 purchases per month.

So, between your two RCAs, assuming you keep the balances at the max, you are doing 32 purchases to earn a blended rate of 2.64% on $35K.

For comparison, I earn 3.33% APY on up to $25K in my RCA, with 10 purchases required (I also do small purchases only), and one ACH deposit or withdrawal of any amount.
index2max wrote:
Tue Oct 29, 2019 6:33 pm
Kevin M wrote:
Tue Oct 15, 2019 7:26 pm
index2max wrote:
Thu Oct 10, 2019 12:28 pm
At a Bank you are just a customer with a dollar sign over your head. They have no mercy nickel and diming with silly fees.

At a credit union, you are not a customer, but a member in a cooperative where it is one man, one vote.

Considering credit unions in the US don’t pay corporate tax because they are non-profits, that means that by default they can afford to pass down more savings to their members then a bank with an equivalent amount of assets in the form of higher interest rates on deposits and lower borrowing rates on loans.

Wish I made the switch sooner!
I have a savings account at a local B&M bank paying 2.50% APY until July 2020. Some credit unions have good rates, some have horrible rates, and some are in between. Ditto for banks. I have accounts at many banks and credit unions, and none of them consistently has the best rates. Many offered a great CD rate at some point in the past (otherwise I wouldn't have opened an account), but don't offer any competitive rates now.

Kevin
What does "B&M" bank mean?
Brick and Mortar. As compared to an online bank, like Ally.
NCUA insurance has the same max as FDIC insurance ($250k), so it obviously comes down to personal preference for which to choose.
Not a personal preference for me. I'm agnostic as to whether a bank or credit union wants to pay me the most to borrow my money. Of course I want my deposits insured by FDIC or NCUA -- that's a given.

Kevin
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Re: Barclays Savings Rate Drops to 1.9% (October 9, 2019)

Post by index2max » Tue Oct 29, 2019 7:10 pm

Kevin M wrote:
Tue Oct 29, 2019 6:58 pm
index2max wrote:
Tue Oct 29, 2019 6:33 pm
Kevin M wrote:
Tue Oct 15, 2019 7:26 pm
index2max wrote:
Thu Oct 10, 2019 12:28 pm
Both my credit unions have held the rates they pay on their high-interest checking accounts above 2%... one at 2.02% and the other a 3.5% :D
Are these reward checking accounts (RCAs)? If so, what are the balance caps? I have an RCA at a bank earning 3.33%, but balance cap is $25K.
Yes, they are reward-based checking accounts.

Credit union #1 pays 2% annual interest. I must maintain a minimum balance of $2,000 or else pay a $20 monthly fee. I must also make 12 purchases per month combined on my credit and/or debit card with them. Each purchase can be as small as one penny. They don't care. Their high-rate checking account pays 2% annual interest up to $20,000.
Two percent is not very good for an RCA (reward checking account)--you can earn 2% in an Ally no-penalty CD for 11 months, and do a penalty free withdrawal after six days. No balance cap, and no hoops to jump through.
index2max wrote:
Tue Oct 29, 2019 6:33 pm
Credit union #2 has a few tiers of high-rate checking accounts. I chose the highest tier. It pays 3.5% annual interest up to $15,000. They require me to make 20 transactions per month. Again, each purchase can be as small as one penny. I must also have at least one direct deposit of $250 each month.
The 3.5% rate is good, but the $15K balance cap is kind of low, and 20 purchases is nuts--most RCAs require 10-12 purchases per month.

So, between your two RCAs, assuming you keep the balances at the max, you are doing 32 purchases to earn a blended rate of 2.64% on $35K.

For comparison, I earn 3.33% APY on up to $25K in my RCA, with 10 purchases required (I also do small purchases only), and one ACH deposit or withdrawal of any amount.
index2max wrote:
Tue Oct 29, 2019 6:33 pm
Kevin M wrote:
Tue Oct 15, 2019 7:26 pm
index2max wrote:
Thu Oct 10, 2019 12:28 pm
At a Bank you are just a customer with a dollar sign over your head. They have no mercy nickel and diming with silly fees.

At a credit union, you are not a customer, but a member in a cooperative where it is one man, one vote.

Considering credit unions in the US don’t pay corporate tax because they are non-profits, that means that by default they can afford to pass down more savings to their members then a bank with an equivalent amount of assets in the form of higher interest rates on deposits and lower borrowing rates on loans.

Wish I made the switch sooner!
I have a savings account at a local B&M bank paying 2.50% APY until July 2020. Some credit unions have good rates, some have horrible rates, and some are in between. Ditto for banks. I have accounts at many banks and credit unions, and none of them consistently has the best rates. Many offered a great CD rate at some point in the past (otherwise I wouldn't have opened an account), but don't offer any competitive rates now.

Kevin
What does "B&M" bank mean?
Brick and Mortar. As compared to an online bank, like Ally.
NCUA insurance has the same max as FDIC insurance ($250k), so it obviously comes down to personal preference for which to choose.
Not a personal preference for me. I'm agnostic as to whether a bank or credit union wants to pay me the most to borrow my money. Of course I want my deposits insured by FDIC or NCUA -- that's a given.

Kevin
Credit union #1 became my main financial institution because it's located close by to me. I use their credit card (1.5% cashback) for any purchases that only get me 1% cashback on my other card. So I wind up exceeding their 12 transaction count each month with no conscious effort anymore. It's a brick and mortar one, which is nice because I sometimes do business at the branches there in person.

Getting 20 penny transactions done with credit union #2 requires about 20 minutes of my time each month. Nice work if you can get it. I'm just glad they haven't been lowering their annual interest rate on my $15,000 considering the Federal Reserve has lowered interest rates. Goldman Sachs didn't hesitate lowering them even before the Fed made their rate-cut announcement earlier this year. Then again, I wouldn't touch Goldman Sachs with a 10-foot pole myself.

You're absolutely right, I could be getting higher interest rates elsewhere. Online-only bank savings accounts have the advantage of requiring no effort, but I prefer to spread my money around credit unions. Should my emergency savings become 2x or 3x greater, I'll probably start looking around for online-only credit unions to stash those extra funds in.

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