Which High-Yield Online Savings Account Should I Open?

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radiowave
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Re: Which High-Yield Online Savings Account Should I Open?

Post by radiowave »

INTRESIS wrote:Anyone else?
+1 on Ally

I'll also put a vote in for Discover. I really like the clean web/iPhone interface and had a need a couple times to call their help line and they were very efficient and pleasant. The only thing I don't like and this is true for most other online HYSA that have associated rewards credit cards is there is a separate log in for savings or credit care. I think Capital One has a fix for that. I don't have an Ally card so someone may want to comment if there is a separate log in for card vs. savings/checking.
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INTRESIS
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Re: Which High-Yield Online Savings Account Should I Open?

Post by INTRESIS »

Why are the reviews for online bank accounts so negative?
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SmileyFace
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Re: Which High-Yield Online Savings Account Should I Open?

Post by SmileyFace »

INTRESIS wrote:Why are the reviews for online bank accounts so negative?
I believe because the only people who take the time to write the reviews are the ones with the bad experiences.
I have accounts at Gsbank (online savings at 1.2%) and sychrony bank (1.15%) and haven't had problems with either. I guess I should go write a review :)
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INTRESIS
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Re: Which High-Yield Online Savings Account Should I Open?

Post by INTRESIS »

DaftInvestor wrote:
INTRESIS wrote:Why are the reviews for online bank accounts so negative?
I believe because the only people who take the time to write the reviews are the ones with the bad experiences.
I have accounts at Gsbank (online savings at 1.2%) and sychrony bank (1.15%) and haven't had problems with either. I guess I should go write a review :)
Whoa GS Bank is at 1.2% now? I might just have to go with them.
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VictoriaF
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Re: Which High-Yield Online Savings Account Should I Open?

Post by VictoriaF »

DaftInvestor wrote:
INTRESIS wrote:Why are the reviews for online bank accounts so negative?
I believe because the only people who take the time to write the reviews are the ones with the bad experiences.
I have accounts at Gsbank (online savings at 1.2%) and sychrony bank (1.15%) and haven't had problems with either. I guess I should go write a review :)
On one hand, you are absolutely right: outrage is a more potent driver for action than satisfaction.

On the other hand, in the financial matters, occasional disasters far outweigh long periods of stability. Your online bank may have good rates, an excellent user interface and responsive personnel. But if they lock your account just when you need the funds, or impose exorbitant compounded fees that you have accidentally triggered, or mismanage IRA transactions and generate a tax record nightmare--the consequences may be dire.

For a long time I was procrastinating with opening an online bank account. Finally, I took a plunge and opened it with Ally. Several Bogleheads I respect have been successfully using it for many years. So far, I have been happy with Ally. Nevertheless, I keep some emergency cash in a local credit union and could survive an Ally lockout if it had ever happened.

Victoria
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SmileyFace
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Re: Which High-Yield Online Savings Account Should I Open?

Post by SmileyFace »

VictoriaF wrote:
DaftInvestor wrote:
INTRESIS wrote:Why are the reviews for online bank accounts so negative?
I believe because the only people who take the time to write the reviews are the ones with the bad experiences.
I have accounts at Gsbank (online savings at 1.2%) and sychrony bank (1.15%) and haven't had problems with either. I guess I should go write a review :)
On one hand, you are absolutely right: outrage is a more potent driver for action than satisfaction.

On the other hand, in the financial matters, occasional disasters far outweigh long periods of stability. Your online bank may have good rates, an excellent user interface and responsive personnel. But if they lock your account just when you need the funds, or impose exorbitant compounded fees that you have accidentally triggered, or mismanage IRA transactions and generate a tax record nightmare--the consequences may be dire.

For a long time I was procrastinating with opening an online bank account. Finally, I took a plunge and opened it with Ally. Several Bogleheads I respect have been successfully using it for many years. So far, I have been happy with Ally. Nevertheless, I keep some emergency cash in a local credit union and could survive an Ally lockout if it had ever happened.

Victoria
I think a lot of folks here chose Ally because they want an online checking account as well as savings which some of the higher interest rate options don't provide. Last time I looked at ratings Ally didn't do any better than GS or Synchrony but I'm not sure where the OP is looking - and since I was only looking at savings and Ally is always a step lower than others - to me the choice was obvious - go for the best rate.
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INTRESIS
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Re: Which High-Yield Online Savings Account Should I Open?

Post by INTRESIS »

DaftInvestor wrote:
VictoriaF wrote:
DaftInvestor wrote:
INTRESIS wrote:Why are the reviews for online bank accounts so negative?
I believe because the only people who take the time to write the reviews are the ones with the bad experiences.
I have accounts at Gsbank (online savings at 1.2%) and sychrony bank (1.15%) and haven't had problems with either. I guess I should go write a review :)
On one hand, you are absolutely right: outrage is a more potent driver for action than satisfaction.

On the other hand, in the financial matters, occasional disasters far outweigh long periods of stability. Your online bank may have good rates, an excellent user interface and responsive personnel. But if they lock your account just when you need the funds, or impose exorbitant compounded fees that you have accidentally triggered, or mismanage IRA transactions and generate a tax record nightmare--the consequences may be dire.

For a long time I was procrastinating with opening an online bank account. Finally, I took a plunge and opened it with Ally. Several Bogleheads I respect have been successfully using it for many years. So far, I have been happy with Ally. Nevertheless, I keep some emergency cash in a local credit union and could survive an Ally lockout if it had ever happened.

Victoria
I think a lot of folks here chose Ally because they want an online checking account as well as savings which some of the higher interest rate options don't provide. Last time I looked at ratings Ally didn't do any better than GS or Synchrony but I'm not sure where the OP is looking - and since I was only looking at savings and Ally is always a step lower than others - to me the choice was obvious - go for the best rate.
GS Bank doesn't offer a checking account?
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INTRESIS
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Re: Which High-Yield Online Savings Account Should I Open?

Post by INTRESIS »

Any more info on GS Bank?
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SmileyFace
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Re: Which High-Yield Online Savings Account Should I Open?

Post by SmileyFace »

Gsbank doesn't have checking - title of your post and your initial question was about a high yield online savings account - you would link this account to a standard checking and use their 1day transfers to move money back and forth. Here's one recent review:

https://www.nerdwallet.com/blog/banking ... nk-review/
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INTRESIS
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Re: Which High-Yield Online Savings Account Should I Open?

Post by INTRESIS »

Which has the highest yield and also has a checking account?
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Dendritic Tree
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Re: Which High-Yield Online Savings Account Should I Open?

Post by Dendritic Tree »

I've had online savings accounts with SFGI Direct, Synchrony, and now Ally. Strongly prefer Ally of the three because of their better online interface. The other two banks had difficulty synchronizing with my main financial hub (USAA), and that I cannot abide. I use my USAA page/app to keep track of all my outlying accounts and investments. The better ease of use and interoperability with Ally were worth a handful of basis points to me.
brito11
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Re: Which High-Yield Online Savings Account Should I Open?

Post by brito11 »

Discover, Ally, and Alliant all have checking accounts along with their high interest savings accounts. Discover has 10 cent cash back on up to 1000 transactions a month. Ally has .1% at balances below 15000 and .6% at balances above 15000. Alliant has .65% if you have estatements and monthly deposit.

I would recommend one of the three above as they do not limit the number of bank-to-bank links, which makes them great as a hub account.
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Abe
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Re: Which High-Yield Online Savings Account Should I Open?

Post by Abe »

Vanguard Prime Money Market (VMMXX) SEC yield is 1.05%
Slow and steady wins the race.
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SmileyFace
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Re: Which High-Yield Online Savings Account Should I Open?

Post by SmileyFace »

Abe wrote:Vanguard Prime Money Market (VMMXX) SEC yield is 1.05%
Would there a be reason to use this MM when Online savings accounts pay more? (Barclays 1.15%, Synchrony 1.15%, GSbank 1.2%).
Carl53
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Re: Which High-Yield Online Savings Account Should I Open?

Post by Carl53 »

I use Prime MM to hold some funds that might otherwise be in a short term bond fund or otherwise available for reinvestment. For an online savings account, have been using Redneck Bank MegaMoney Account (1.5% for up to $35k) for about five years and also have a Cap360 Savings (1.0%) for other amounts.
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Abe
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Re: Which High-Yield Online Savings Account Should I Open?

Post by Abe »

DaftInvestor wrote:
Abe wrote:Vanguard Prime Money Market (VMMXX) SEC yield is 1.05%
Would there a be reason to use this MM when Online savings accounts pay more? (Barclays 1.15%, Synchrony 1.15%, GSbank 1.2%).
Well I guess it depends. In my case, I've pretty much funded several online savings accounts to the maximum FDIC coverage. I just don't want to open any more savings accounts, so I've been using VMMXX. I know it is not FDIC insured, but I consider it to be just about as safe, and it is convenient for me to use.
Slow and steady wins the race.
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INTRESIS
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Re: Which High-Yield Online Savings Account Should I Open?

Post by INTRESIS »

I was leaning towards Ally, but now, I have no idea.
jbuzolich
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Re: Which High-Yield Online Savings Account Should I Open?

Post by jbuzolich »

Another +1 for Ally. For me their rates are better than a lot of other places but their website and speed of transfers put them in front for me. Increasingly I'm having any deposit streams just go straight to Ally savings other than our regular paychecks needed for household bills. Couple weeks ago I linked Ally savings to our Vanguard account so I could do straight transfers. I really appreciate the interface on managing, redeeming, or creating new CDs.
*3!4!/5!
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Re: Which High-Yield Online Savings Account Should I Open?

Post by *3!4!/5! »

INTRESIS wrote:I was leaning towards Ally, but now, I have no idea.
Have you had your cash stuffed in a mattress for the last two months since you started this thread.

What I've noticed is that you have repeatedly written very brief questions, and many people have spent time giving detailed responses. Perhaps you should write a lengthy detailed question articulating exactly what you need/want, and enable people to give brief responses.
rickhuizinga
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Re: Which High-Yield Online Savings Account Should I Open?

Post by rickhuizinga »

Redneck/All America Bank just increased the rate on their Mega Money Market Checking account to 1.50%. Although this is a checking account, it is limited to 6 debits per month. Additional debits incur a $5 fee.

I personally just moved my checking account from Aspiration (1% interest) here. I make all of my purchases via credit card, so the only debits from the account will be credit card payments - well below 6 debits per month.

Aspiration had a very nice app. Redneck/All America Bank's is just a shell for their mobile website.
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Kenster1
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Re: Which High-Yield Online Savings Account Should I Open?

Post by Kenster1 »

brito11 wrote:Discover, Ally, and Alliant all have checking accounts along with their high interest savings accounts. Discover has 10 cent cash back on up to 1000 transactions a month. Ally has .1% at balances below 15000 and .6% at balances above 15000. Alliant has .65% if you have estatements and monthly deposit.

I would recommend one of the three above as they do not limit the number of bank-to-bank links, which makes them great as a hub account.
One of the issues I had with Alliant Credit Union during a Friday evening (after 7pm) was that my online login account was locked out and when I called to try to have it reset, the Rep said that they couldn't do it and that I would have to call back the next day during daytime hours and someone would be able to unlock/reset the login. The evening rep said they didn't have the ability to reset the online login.

I was surprised with that limitation - not sure if that was just an anomaly or if that's really the case across the board for them.
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Kenster1
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Re: Which High-Yield Online Savings Account Should I Open?

Post by Kenster1 »

jbuzolich wrote:Another +1 for Ally. For me their rates are better than a lot of other places but their website and speed of transfers put them in front for me. Increasingly I'm having any deposit streams just go straight to Ally savings other than our regular paychecks needed for household bills. Couple weeks ago I linked Ally savings to our Vanguard account so I could do straight transfers. I really appreciate the interface on managing, redeeming, or creating new CDs.
Nice to know!

And for the OP - Ally has been pretty good for a lot of folks who want both online checking & savings account in one place, including very competitive CD rates. See this thread about the recent CD action:

Ally no penalty 11 month CD rate increased to 1.50% this morning
viewtopic.php?f=2&t=221553

The Savings interest rate at Ally is quite competitive and is up there with the top tier group - though not the highest in that group. I'm sure within time they may inch their Savings rate up a bit. So it's up to you to weigh the convenience of having everything in one spot for Checking plus top tier Savings Account rates or to open a separate Savings account elsewhere and link that to your Checking account (which could be at Ally).

This latter option would be the case if you really don't mind a different Savings account location in exchange for a razor thin increase in the APY rates. Part of that can depend on how much one keeps in liquid Savings account...because those with substantial cash tend to hold quite a bit in things like CDs.

I mean the difference between $10k at 1.05% and 1.20% is a whopping $15 and then less than that after accounting for taxes.

These other stand-alone Savings accounts include Synchrony Online (1.15%), Barclays Online (1.15%) and Goldman Sachs Online (1.20%)
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Milo
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Re: Which High-Yield Online Savings Account Should I Open?

Post by Milo »

The Ally 11 month No Penalty CD also offers a second tier of 1.25% with a minimum of $5,000 for those interested. Isn't this CD basically a savings account after the initial 6 days?
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