Parents' joint EF - PurePoint Financial vs Synchrony vs other

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

Parents' joint EF - PurePoint Financial vs Synchrony vs other

Post by need403bhelp » Wed Apr 18, 2018 6:08 pm

Thank you all for your past help!

My parents' asked me to help them move their EF/investigate options as they are earning ~0.15% APY at their credit union.

My current plan is an FDIC insured high-yield savings (HYS) account for now, with $25k/year going to I-bonds at Treasury Direct until HYS is depleted. (I know that some people have had bad experiences with Treasury Direct, but I'd like to refrain from discussing that in this thread).

Looking at depositaccounts and searching the forums, I am considering the following options:
1. Synchrony Bank 1.55% - this is my backup/default choice. I have had them for online savings for me & DW for >3 years now and have generally been satisfied with my experience, although this is not the best rate.
2. PurePoint Financial 1.75% - the rate is enticing, and it seems Bogleheads have good experiences. However, I am somewhat hesitant based on reviews at https://www.depositaccounts.com/banks/p ... ml#reviews , in which two major themes emerge:
2a. Duplications of ACH-in transactions - there are several comments with individuals who requested $X debited from their non-PurePoint account and two separate transactions were actually initiated by PurePoint totaling $2*X, leading to an over-draft. Has anyone had such experiences? This alone would make me want to avoid the bank...
2b. Difficulty to ACH funds OUT of PurePoint - several people mentioned that if you ACH out, at the least, they will try to call you to confirm. If you miss their call, your transfer will be delayed, perhaps indefinitely. I especially am worried about this, as DF doesn't have a cell phone and both DF and DM are pretty busy and so often times may not pick up with such a call. Anyone had experiences ACHing OUT of PurePoint, good or bad?
3. Other account. The only one perhaps that looks enticing from the reviews would be GSBank at 1.6%, although people seem to complain about the new platform, and I'm not sure I'd go with GSBank over Synchrony for 0.05% APY difference.

Of note, their EF is >$50k, so redneck bank is out.

Any thoughts/experience much appreciated!

P.S. In case anyone is curious, I was previously considering using a Roth IRA/backdoor Roth IRA for part of their EF, but aborted my plan when I realized that you have to sell any brokered CDs on the open market if they are not held to maturity, as this would imply potential loss of principle in case of a true emergency requiring money from the EF.

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