Which High-Yield Online Savings Account Should I Open?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
INTRESIS
Posts: 86
Joined: Sat Nov 15, 2014 12:39 pm

Which High-Yield Online Savings Account Should I Open?

Post by INTRESIS » Thu Apr 27, 2017 9:30 pm

Which High-Yield Online Savings Account Should I Open?

INTRESIS
Posts: 86
Joined: Sat Nov 15, 2014 12:39 pm

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

Post by INTRESIS » Thu Apr 27, 2017 9:33 pm

I'm looking at options including the following: Ally, Synchrony, Discover, Barclays, Alliant, Goldman Sachs, CIT Bank, American Express, and Capital One. I was going to create a poll with these options, but it looks like I cannot post a poll.


happytooth09
Posts: 5
Joined: Thu Apr 27, 2017 9:20 pm

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

Post by happytooth09 » Thu Apr 27, 2017 9:34 pm

I have both Ally and Capital One 360 and like the interface and quickness of Ally the best. The rate is also slightly higher.

User avatar
Hodor
Posts: 224
Joined: Wed Jun 24, 2015 8:27 pm

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

Post by Hodor » Thu Apr 27, 2017 9:36 pm

Are you just looking for a savings account, and not also a checking account at the same bank? If so, then pick the one with the highest interest rate.

INTRESIS
Posts: 86
Joined: Sat Nov 15, 2014 12:39 pm

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

Post by INTRESIS » Thu Apr 27, 2017 9:38 pm

Hodor wrote:Are you just looking for a savings account, and not also a checking account at the same bank? If so, then pick the one with the highest interest rate.
looks like I could have both with Ally Bank.

happytooth09
Posts: 5
Joined: Thu Apr 27, 2017 9:20 pm

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

Post by happytooth09 » Thu Apr 27, 2017 9:41 pm

Ally also offers 0.6% for their checking account if you keep over $15k in it. It drops to 0.1% if you have less. If you have less, then capital one 360 has the better checking account interest rate.

I have an Ally checking account and multiple savings accounts. Transferring between accounts is immediate and to external accounts is 2 days typically.

madbrain
Posts: 4946
Joined: Thu Jun 09, 2011 5:06 pm
Location: San Jose, California

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

Post by madbrain » Thu Apr 27, 2017 9:42 pm

Does it have to be online ?

My credit union, Star One, offers 1.10% rate on savings/money market accounts and has brick and mortar locations as well.

User avatar
Tyrobi
Posts: 689
Joined: Thu Jun 04, 2009 12:29 pm
Location: Florida
Contact:

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

Post by Tyrobi » Thu Apr 27, 2017 9:49 pm

My main online savings account is with Ally (1.05%).

Recently, I also opened a second one with Capital One (1.00%) to easily harvest $200 bonus. The bonus has been transferred into my account. At the moment, the promotion is still running if you want the bonus:

With 360 Money Market, an online and mobile account from Capital One, you’ll earn up to 1.00% Annual Percentage Yield—plus a $200 bonus. To qualify for the $200 bonus, open your very first 360 Money Market account online and deposit at least $10,000 no later than 6/30/2017 11:59 p.m. In order to qualify for the bonus, you must make a deposit from an external account.
Three-fund portfolio | "Simplicity is the master key to financial success." John C. Bogle

INTRESIS
Posts: 86
Joined: Sat Nov 15, 2014 12:39 pm

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

Post by INTRESIS » Thu Apr 27, 2017 11:17 pm

madbrain wrote:Does it have to be online ?

My credit union, Star One, offers 1.10% rate on savings/money market accounts and has brick and mortar locations as well.
Yes, online.

Eurookat
Posts: 241
Joined: Sat Nov 29, 2014 1:44 pm

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

Post by Eurookat » Fri Apr 28, 2017 6:44 am

Tyrobi wrote:My main online savings account is with Ally (1.05%).

Recently, I also opened a second one with Capital One (1.00%) to easily harvest $200 bonus. The bonus has been transferred into my account. At the moment, the promotion is still running if you want the bonus:

With 360 Money Market, an online and mobile account from Capital One, you’ll earn up to 1.00% Annual Percentage Yield—plus a $200 bonus. To qualify for the $200 bonus, open your very first 360 Money Market account online and deposit at least $10,000 no later than 6/30/2017 11:59 p.m. In order to qualify for the bonus, you must make a deposit from an external account.
What's the difference besides the interest rate on the 360 Savings vs Money Market. We have our savings in their traditional savings. If it's just a matter of opening the MM account and transferring money into it, I may just do that.

Traveller
Posts: 678
Joined: Sat Jun 25, 2011 10:47 am

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

Post by Traveller » Fri Apr 28, 2017 6:50 am

The rate differences are so low, I'm not sure it matters all that much. I used to be at Capital One 360, but switched to Ally a few years ago and am very happy. Their app and website are great and ACH transfers to my local credit union, or vanguard take 1 day. I have contacted ally customer service on a few occasions and found them to be very responsive and helpful as well.

User avatar
Kenkat
Posts: 4128
Joined: Thu Mar 01, 2007 11:18 am
Location: Cincinnati, OH

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

Post by Kenkat » Fri Apr 28, 2017 6:55 am

The other thing I will mention is that funds like Vanguard Prime Money Market are now paying competitive rates after a few years of near zero interest rates. While this is not an option if you are looking for FDIC coverage, Prime MM is now at a 0.96% yield and that will probably continue to rise in the near term.

Eurookat
Posts: 241
Joined: Sat Nov 29, 2014 1:44 pm

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

Post by Eurookat » Fri Apr 28, 2017 7:05 am

Traveller wrote:The rate differences are so low, I'm not sure it matters all that much. I used to be at Capital One 360, but switched to Ally a few years ago and am very happy. Their app and website are great and ACH transfers to my local credit union, or vanguard take 1 day. I have contacted ally customer service on a few occasions and found them to be very responsive and helpful as well.
The one thing that does bug me about CO is when you initiate an incoming transfer from within CO. That takes a couple of days to arrive. I learned that initiating it from the other end is much quicker, there's no hold on the funds.

MikeG62
Posts: 874
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

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

Post by MikeG62 » Fri Apr 28, 2017 8:00 am

FWIW, I've had online savings accounts with Ally, Discover and Barclay's. In the process of consolidating down to one (as I deploy more cash to investments) and the one will be Ally. Been with both Ally and Discover for a decade and Barclay's for maybe 4 years.
Real Knowledge Comes Only From Experience

puravida
Posts: 18
Joined: Sun Apr 21, 2013 3:01 pm
Location: Central Florida - Winter Springs

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

Post by puravida » Fri Apr 28, 2017 12:11 pm

I've also been looking at best online savings options for my $100K emergency fund. Preferring to keep it simple (less accounts) & all at Fidelity, it's currently in their prime money market (FZDXX) earning .92%. Any major downside to this other than earning a tad less than 1.05% at online savings accounts?
Simple, passive, effective - the Bogle way...

INTRESIS
Posts: 86
Joined: Sat Nov 15, 2014 12:39 pm

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

Post by INTRESIS » Sat Apr 29, 2017 9:28 am

Ally? hmmm

User avatar
aj76er
Posts: 554
Joined: Tue Dec 01, 2015 11:34 pm
Location: Portland, OR

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

Post by aj76er » Sat Apr 29, 2017 10:20 am

puravida wrote:I've also been looking at best online savings options for my $100K emergency fund. Preferring to keep it simple (less accounts) & all at Fidelity, it's currently in their prime money market (FZDXX) earning .92%. Any major downside to this other than earning a tad less than 1.05% at online savings accounts?
That fund has a lot of purchase agreements and floating rate notes, so I'd view it as more risky than an FDIC savings account or pure Treasury money market.

At Fidelity, I would consider one of three options for cash savings:
1. SHV which is a T-bill etf run by ishares. No transaction fee at Fidelity
2. FDLXX, which is a Treasury-only money market fund
3. Ally Savings linked to your brokerage account for ETF transfers. In this manner, the savings account acts as an operating cash account as long as you don't have too many transactions (I think Ally has a limit on the number of transactions per month).

You could also consider other short term bond funds like SHY or VCSH, both being progressively more risky. Or a combo (eg 50/50 split of SHV and SHY).
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

User avatar
aj76er
Posts: 554
Joined: Tue Dec 01, 2015 11:34 pm
Location: Portland, OR

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

Post by aj76er » Sat Apr 29, 2017 10:30 am

aj76er wrote:
puravida wrote:I've also been looking at best online savings options for my $100K emergency fund. Preferring to keep it simple (less accounts) & all at Fidelity, it's currently in their prime money market (FZDXX) earning .92%. Any major downside to this other than earning a tad less than 1.05% at online savings accounts?
That fund has a lot of purchase agreements and floating rate notes, so I'd view it as more risky than an FDIC savings account or pure Treasury money market.

At Fidelity, I would consider one of three options for cash savings:
1. SHV which is a T-bill etf run by ishares. No transaction fee at Fidelity
2. FDLXX, which is a Treasury-only money market fund
3. Ally Savings linked to your brokerage account for ETF transfers. In this manner, the savings account acts as an operating cash account as long as you don't have too many transactions (I think Ally has a limit on the number of transactions per month).

You could also consider other short term bond funds like SHY or VCSH, both being progressively more risky. Or a combo (eg 50/50 split of SHV and SHY).
Another option is to roll your own short-term treasury Bond Fund with Fidelity's automated Bond laddering feature. You can choose you're duration and I think it's free to setup and maintain (perhaps others can chime in with experience on this).
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

onourway
Posts: 1113
Joined: Thu Dec 08, 2016 3:39 pm

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

Post by onourway » Sat Apr 29, 2017 10:36 am

Eurookat wrote: What's the difference besides the interest rate on the 360 Savings vs Money Market. We have our savings in their traditional savings. If it's just a matter of opening the MM account and transferring money into it, I may just do that.
MM account pays 1% only on balances over $10k. Otherwise it's handled the same as the other accounts - you can transfer money between them instantly, etc.

onourway
Posts: 1113
Joined: Thu Dec 08, 2016 3:39 pm

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

Post by onourway » Sat Apr 29, 2017 10:37 am

puravida wrote:I've also been looking at best online savings options for my $100K emergency fund. Preferring to keep it simple (less accounts) & all at Fidelity, it's currently in their prime money market (FZDXX) earning .92%. Any major downside to this other than earning a tad less than 1.05% at online savings accounts?
You could jump to 1.25% at Purepoint bank.

User avatar
whodidntante
Posts: 3573
Joined: Thu Jan 21, 2016 11:11 pm

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

Post by whodidntante » Sat Apr 29, 2017 10:43 am

Do you know what you want? Are you going to tell us your selection criteria?

gator1
Posts: 156
Joined: Tue Sep 03, 2013 5:58 pm
Location: Smoky Mountains of East Tennessee

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

Post by gator1 » Sat Apr 29, 2017 1:03 pm

When I was going through a similar search I narrowed it down to Ally, Alliant, and Barclays. Those were the only 3 I looked at seriously from that point on. I also debated doing the Rewards Checking but those rates fluctuate a lot and I didn't want to mess with it. I wanted park it and leave it.

I chose Ally and they have been fine. My rates have been as promised, and I just park money and leave it so I'm a very hands off customer. Alliant finished a close second. Barclays finished third. Honestly, the only reason I picked Ally was because it was the most recommended on this site.

radiowave
Posts: 1709
Joined: Thu Apr 30, 2015 5:01 pm

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

Post by radiowave » Sat Apr 29, 2017 5:08 pm

One nice feature of Ally is it's online CD management. You fund your CD, then say if you want to hold the interest or pay out and what happens at maturity, e.g. rolls over to savings. This way you don't have to worry about it being automatically rolled over to another CD and play EWP because you forgot about it.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

INTRESIS
Posts: 86
Joined: Sat Nov 15, 2014 12:39 pm

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

Post by INTRESIS » Sat Apr 29, 2017 5:59 pm

Ally seems to be getting the most support. Any objections to Ally?

Jack FFR1846
Posts: 7210
Joined: Tue Dec 31, 2013 7:05 am

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

Post by Jack FFR1846 » Sat Apr 29, 2017 6:04 pm

Why no mention of a 1.25% Redneck Bank Megamoney account?
Bogle: Smart Beta is stupid

User avatar
patriciamgr2
Posts: 788
Joined: Mon Nov 19, 2007 3:06 pm

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

Post by patriciamgr2 » Sat Apr 29, 2017 6:31 pm

post deleted
Last edited by patriciamgr2 on Sat Apr 29, 2017 6:38 pm, edited 1 time in total.

BHUser27
Posts: 632
Joined: Mon Jan 18, 2016 3:07 pm
Location: A Midwestern Town

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

Post by BHUser27 » Sat Apr 29, 2017 6:35 pm

+1 for Ally -
Been with Ally around 2 yrs. Absolutely no complaints. Recently set up four CDs of different durations using money from my savings account - did it all over the phone - very pleasant experience. Love their web interface and iOS app.

INTRESIS
Posts: 86
Joined: Sat Nov 15, 2014 12:39 pm

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

Post by INTRESIS » Sat Apr 29, 2017 8:39 pm

Leaning towards Ally.

akjain123
Posts: 4
Joined: Sat Apr 01, 2017 12:11 pm

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

Post by akjain123 » Sat Apr 29, 2017 8:57 pm

onourway wrote:
puravida wrote:I've also been looking at best online savings options for my $100K emergency fund. Preferring to keep it simple (less accounts) & all at Fidelity, it's currently in their prime money market (FZDXX) earning .92%. Any major downside to this other than earning a tad less than 1.05% at online savings accounts?
You could jump to 1.25% at Purepoint bank.

Did you ever have an issue of withdrawal for purepoint?

Only reason i ask was because of this:

Withdrawals: Pursuant to federal regulation, we reserve the right to require seven days’ advance written
notice prior to withdrawal.

Source:
https://www.purepoint.com/res/docs/acco ... avings.pdf

Thanks

michaelsieg
Posts: 543
Joined: Mon Jan 07, 2013 11:02 am

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

Post by michaelsieg » Sat Apr 29, 2017 10:54 pm

Dollarsavingsdirect has a 1.25% savings account - the rate went up last month

spammagnet
Posts: 882
Joined: Wed Apr 27, 2016 9:42 pm

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

Post by spammagnet » Sat Apr 29, 2017 11:11 pm

aj76er wrote:... (I think Ally has a limit on the number of transactions per month). ...
6 per month in savings accounts. I may be mistaken, but I believe that's determined by federal regulation? If true, all banks have the same restriction.

INTRESIS
Posts: 86
Joined: Sat Nov 15, 2014 12:39 pm

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

Post by INTRESIS » Sun Apr 30, 2017 12:06 am

bump.

VAslim16
Posts: 110
Joined: Sat May 24, 2008 6:47 am

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

Post by VAslim16 » Sun Apr 30, 2017 12:11 am

Like many here, I am a fan of Ally. I would go with them.

*3!4!/5!
Posts: 1256
Joined: Fri Sep 02, 2016 1:47 pm

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

Post by *3!4!/5! » Sun Apr 30, 2017 2:09 am

whodidntante wrote:Do you know what you want? Are you going to tell us your selection criteria?
Good point. No-one knows what OP wants.
INTRESIS wrote:Leaning towards Ally.
Why? No-one knows what you want so they can't recommend anything to you specifically.

pc95
Posts: 176
Joined: Sat Sep 17, 2011 9:26 pm

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

Post by pc95 » Sun Apr 30, 2017 7:59 am

http://www.sfgidirect.com/

1.06% - but the main reason why I like sfgidirect is its fast ACH turnarounds - usually a day or 2 max to your main bank. Other banks/Credit Unions take 3 or 4 days sometimes to transfer.

Calygos
Posts: 459
Joined: Tue Jan 13, 2015 3:48 pm

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

Post by Calygos » Sun Apr 30, 2017 8:47 am

spammagnet wrote:
aj76er wrote:... (I think Ally has a limit on the number of transactions per month). ...
6 per month in savings accounts. I may be mistaken, but I believe that's determined by federal regulation? If true, all banks have the same restriction.
Regulation D

INTRESIS
Posts: 86
Joined: Sat Nov 15, 2014 12:39 pm

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

Post by INTRESIS » Sun Apr 30, 2017 9:04 am

*3!4!/5! wrote:
whodidntante wrote:Do you know what you want? Are you going to tell us your selection criteria?
Good point. No-one knows what OP wants.
INTRESIS wrote:Leaning towards Ally.
Why? No-one knows what you want so they can't recommend anything to you specifically.
I want one with the highest yield, good website/mobile app, easy to use, high customer satisfaction, and highly rated. I also likes that Ally offers a free checking account.

indexlover
Posts: 62
Joined: Mon May 11, 2015 10:39 am

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

Post by indexlover » Sun Apr 30, 2017 9:42 am

How about using Vanguard Municipal Money Market Fund ( VMSXX) - SEC Yield 0.78% ( which is equivalent to 1.08% if you are in 28% tax bracket) ?

jbuzolich
Posts: 265
Joined: Tue Jun 24, 2014 9:52 pm

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

Post by jbuzolich » Sun Apr 30, 2017 9:46 am

Another +1 for Ally. Been with them a number of years. Recently got excited for the small things in life and moved 1% savings to 1.1% no penalty CD all within Ally. No penalty at all after six days. Felt like free money to me. $25k minimum on that rate I think. Right after I did that their savings went to 1.05% but I'm still slightly higher with their CD and can change it to something else with a few mouse clicks if needed.

frisbee
Posts: 122
Joined: Tue Jan 06, 2015 9:02 am

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

Post by frisbee » Sun Apr 30, 2017 9:57 am

There's a bizillion threads on "where do I keep my emergency stash / house fund" - Rather than start another -

Wife & I are very unlikely to ever have to tap the emergency fund (dual high incomes/28% bracket, no debts, no kids), but we felt it was responsible (liquidity makes us happy), plus we wanted a 20% house down payment ($50k) available on short notice for if we ever stop renting, plus we view it as part of our bond portfolio.

Currently the money is earning 1% at CapitalOne in a Money Mkt account.

Anyone see a good reason not to stash it in a 5-year CD @ 2.3% at CapitalOne? The EWP is 6-month (1.15%). Money would be there on very short notice (7 days), and the penalty if we crack the piggy bank is pretty small. Even if we sell the CD after a year, we are ahead 0.15% vs. the Money Mkt.

Thoughts? Basically, I'm looking for a better alternative if it makes sense. Thanks - Frisbee

*3!4!/5!
Posts: 1256
Joined: Fri Sep 02, 2016 1:47 pm

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

Post by *3!4!/5! » Sun Apr 30, 2017 11:06 am

INTRESIS wrote:
*3!4!/5! wrote:
whodidntante wrote:Do you know what you want? Are you going to tell us your selection criteria?
Good point. No-one knows what OP wants.
INTRESIS wrote:Leaning towards Ally.
Why? No-one knows what you want so they can't recommend anything to you specifically.
I want one with the highest yield, good website/mobile app, easy to use, high customer satisfaction, and highly rated. I also likes that Ally offers a free checking account.
Ally is fine for banking and the interest rate is decent. But if you wanted to park a very large amount, you can find higher interest.

User avatar
dratkinson
Posts: 4242
Joined: Thu Jul 26, 2007 6:23 pm
Location: Centennial CO

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

Post by dratkinson » Sun Apr 30, 2017 9:56 pm

spammagnet wrote:
aj76er wrote:... (I think Ally has a limit on the number of transactions per month). ...
6 per month in savings accounts. I may be mistaken, but I believe that's determined by federal regulation? If true, all banks have the same restriction.
Savings and money market accounts withdrawals: yes. Deposits: no.
See: https://en.wikipedia.org/wiki/Regulation_D_(FRB)



Teaser rates. I really liked my HSBC 5.05% APY HY online savings account. When I opened it in 2007. Not so much the 0.10% APY it seemed to quickly become, and remained when I closed it years later. I now assume all teaser rates eventually go away. The question then becomes, do I what to relink my financial life and jump through additional hoops (savings or/and checking) to rate chase ~1%? I decided, No.



The cost of simplicity. I keep a year of living expenses in ~0% APY convenient, linked checking, savings, and mmkt fund. This is the first tier of my EF and I keep it simple. Since I no longer chase rates, that simplicity appears to cost me the loss of ~$200/yr (= $20K x 1.05%). The rest is invested at market rates.



Market rates.

The next tier of my EF is invested in appropriate bonds. In my case, 25%+ fed tax bracket, municipal bond funds. And due to the tax exemption(s), their yield is bumped up.

This is old data, but left as a student exercise to double-check and correct. Municipal bond fund SEC yields.
VWITX, IT national: 1.5%
VWLTX, LT national: 2.0%
WTCOX, IT single state fund: 2.5%

N.B. VWITX and VWLTX are "daily accrual" funds. Meaning they are exempt from the IRS 6-mo holding period requirement to protect tax-exempt dividends. Meaning they can easily be used a one tier of our EFs---sold when needed to pay for emergency. Only relatively simple CG reporting is required when sold.

This means appropriate bond funds can do double-duty: (1) as a tier of our EFs, and (2) as a part of our bond allocation. And with a 50/50 AA nearing retirement, that can grow to be many decades of living expenses.

Assuming a 1.5% SEC yield for VWITX, then there is no need for me to chase any teaser rate with a taxable-equivalent yield* <=2% (= 1.5/(1-.25)). {* TEY = muni bond fund SEC yield / (1 - fed tax rate)}



NAV fluctuation. Bond fund NAVs can fluctuate: bonds can lose 5-15% of their value during a crash. How to protect our EF if we use bonds? Solution: over fund our EF by 18% (= 1/(1-.15) - 1).



Senior investor advice: When we have enough (as determined by us), then all of our investments become our EF.

I've come to appreciate this advice and now value simplicity, though it may appear to be costing me $200/yr by not chasing rates. But, since the remainder of my money is invested more quickly at higher market rates, I may be making up for more than that small loss. At least, this is the simplifying assumption that I've made. :)



Suggestion. Pick the financial relationships (B&M bank/CU for local access*, checking, savings, investing,...) that keep your life simple. Interlink your accounts for easy money transfer. Try to avoid the needless complication of rate chasing. (*Exception: some mobile banking apps make it easy to deposit checks by smartphone, so local access it less important.)
d.r.a, not dr.a. | I'm a novice investor, you are forewarned.

amateurnovice
Posts: 163
Joined: Wed Mar 11, 2015 1:56 pm

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

Post by amateurnovice » Mon May 01, 2017 7:29 am

I would go with Synchrony as I've successfully connected multiple accounts to it with no issues.

User avatar
DaftInvestor
Posts: 3934
Joined: Wed Feb 19, 2014 10:11 am

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

Post by DaftInvestor » Mon May 01, 2017 7:57 am

I've got accounts at both Synchrony and GSBank (both paying 1.05%). While Ally is now at 1.05% it hasn't been until recently - they aren't consistently at the top the way that Synchrony and gsbank (formally GE-Capital) have been. I'd go with one of them. My preference is gsbank because their ACH transfers always complete within a day.

INTRESIS
Posts: 86
Joined: Sat Nov 15, 2014 12:39 pm

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

Post by INTRESIS » Wed May 03, 2017 8:17 pm

Anyone else?

need403bhelp
Posts: 560
Joined: Thu May 28, 2015 6:25 pm

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

Post by need403bhelp » Wed May 03, 2017 9:37 pm

Had Synchrony for 3+ years. Good interest. Haven't had problems. Don't mind waiting ?3 business days for ach transfers - it is my ef/long term savings, no need to access the money any quicker. Obviously, some banks have "nicer" (Ally) online interface, but Synchrony works (well) for me.

michaelsieg
Posts: 543
Joined: Mon Jan 07, 2013 11:02 am

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

Post by michaelsieg » Wed May 03, 2017 10:28 pm

I have used the Dollarsavingsdirect savings account for a few years and it has worked well, it is all online, FDIC insured and the money is usually transferred the next day if you need it. I have it linked to my checking account with a different bank. No minimums. Have no relationship with them, but right now it seems that their rates are competitive compared to others. Also like the American express savings account, but rate is currently only 0.9%.

mm100
Posts: 3
Joined: Wed May 03, 2017 12:50 pm

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

Post by mm100 » Wed May 03, 2017 10:59 pm

One thing I did not see mentioned is trust account. If you ever decide to set up a revocable trust, for example, and wish to transfer the bank account in trust name, Ally will allow you to open a trust account. Discover and American Express do not allow trust accounts. Not sure about others.

radiowave
Posts: 1709
Joined: Thu Apr 30, 2015 5:01 pm

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

Post by radiowave » Wed May 03, 2017 11:01 pm

frisbee wrote:There's a bizillion threads on "where do I keep my emergency stash / house fund" - Rather than start another -

Wife & I are very unlikely to ever have to tap the emergency fund (dual high incomes/28% bracket, no debts, no kids), but we felt it was responsible (liquidity makes us happy), plus we wanted a 20% house down payment ($50k) available on short notice for if we ever stop renting, plus we view it as part of our bond portfolio.

Currently the money is earning 1% at CapitalOne in a Money Mkt account.

Anyone see a good reason not to stash it in a 5-year CD @ 2.3% at CapitalOne? The EWP is 6-month (1.15%). Money would be there on very short notice (7 days), and the penalty if we crack the piggy bank is pretty small. Even if we sell the CD after a year, we are ahead 0.15% vs. the Money Mkt.

Thoughts? Basically, I'm looking for a better alternative if it makes sense. Thanks - Frisbee
You could break the 50k into say 5 10k CDs and if you needed just a small amount, less EWP for the 10k opposed to the entire 50k.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

Post Reply