looking for a new (online) savings account home

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Iorek
Posts: 911
Joined: Fri Mar 08, 2013 9:38 am

looking for a new (online) savings account home

Post by Iorek » Tue Jul 10, 2018 8:34 pm

I like to keep some cash in an online savings account as a savings account for home repairs/car replacement/emergencies, etc. It fluctuates but it's generally in the $20-60k range.

For a long time we've been used emigrant direct because 10+ years ago it had good rates, and while it hasn't had competitive rates in a while the difference seemed too negligible to actually bother opening a new account.

However, now the gap between ED and other online banks seems to be growing and I am inclined to find a new home for my cash. Does anyone have a suggestion for an easy-to-deal-with and competitive rates option?

It doesn't have to be an online account but the only thing I really want out of it is a decent rate and the ability to fairly easily transfer money to and from two other bank accounts which we use for paychecks and bill paying.

Should I just go with Ally? Should I go with Capital One since they have are not just online but have a branch near us too? Is there some less obvious choice Bogleheads know about?

thanks

Larry2623
Posts: 44
Joined: Sat Jul 15, 2017 9:23 pm

Re: looking for a new (online) savings account home

Post by Larry2623 » Tue Jul 10, 2018 8:37 pm

I use GS Marcus...happy with rate and service

Gray
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Joined: Sat Apr 16, 2011 5:33 am

Re: looking for a new (online) savings account home

Post by Gray » Tue Jul 10, 2018 8:44 pm

I have found Ally to be pretty good. More services than GS.

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Nicolas
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Re: looking for a new (online) savings account home

Post by Nicolas » Tue Jul 10, 2018 8:46 pm

I’m with Synchrony Bank. Their rates are higher than Ally’s. Also FDIC-insured. No problems in the last two and a half years I’ve held the accounts.

meebers
Posts: 269
Joined: Sat Apr 14, 2012 7:20 pm
Location: Florida

Re: looking for a new (online) savings account home

Post by meebers » Tue Jul 10, 2018 8:47 pm

I have been using SallieMae Bank, currently @ 1.75 for savings.

billfromct
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Re: looking for a new (online) savings account home

Post by billfromct » Tue Jul 10, 2018 8:58 pm

It looks like Synchrony & Ally high yield savings interest rate is 1.75%.

The Vanguard Prime MM Fund current SEC yield is 2.04% & you can transfer between your bank checking account & the Prime MM fund in a day or 2. There is a $3,000 minimum to open the Vanguard Prime MM Fund.

I believe you can only transfer between the Vanguard Prime MM & one other bank/credit union account.

bill

nesdog
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Joined: Thu Dec 07, 2017 8:20 pm

Re: looking for a new (online) savings account home

Post by nesdog » Tue Jul 10, 2018 10:20 pm

I just went through this search. We ended up opening an account at Ally. Every time I called with questions, they were quick to answer. I never waited on hold more than a minute. Interest rate is good and we are FDIC covered.

02nz
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Re: looking for a new (online) savings account home

Post by 02nz » Tue Jul 10, 2018 10:37 pm

Discover (same company that issues credit cards) is another good choice, also at 1.75% right now. They recently ran a promo offering $150 on a $15,000 deposit, no requirement on length of time. That's expired but they do these every so often I think.

jacoavlu
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Re: looking for a new (online) savings account home

Post by jacoavlu » Tue Jul 10, 2018 10:38 pm

Purepoint

harmoniousmonk
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Re: looking for a new (online) savings account home

Post by harmoniousmonk » Wed Jul 11, 2018 6:18 am

Sallie Mae currently 1.90%

rich126
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Joined: Thu Mar 01, 2018 4:56 pm

Re: looking for a new (online) savings account home

Post by rich126 » Wed Jul 11, 2018 7:19 am

When I read this post, I thought I had written the original post. I got an Emigrant Direct account a long time ago for the same reasons (also an ING account) and have been lazy in closing it and moving it to somewhere else with better rates. Partly because I have a small amount going to ED from my paycheck and that takes another form to fill out by my employer.

Thanks for posting this. Maybe I'll finally do something about it. Like the others have posted, Ally seems to be near the top right now. The other thing to consider is signing up bonuses. Some of the lower interest paying banks might provide a signup bonus that would compensate for the lower interest rate, at least for a year.

itsgot8
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Joined: Thu Dec 14, 2017 11:20 am

Re: looking for a new (online) savings account home

Post by itsgot8 » Wed Jul 11, 2018 9:59 am

I also noticed how ED hasn't raised their interest rate at all and have quickly fallen behind.

Thanks for posting this as it has reminded me to switch out of ED and over to someone else providing a better interest rate!

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Toons
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Location: Hills of Tennessee

Re: looking for a new (online) savings account home

Post by Toons » Wed Jul 11, 2018 10:03 am

I am completely satisfied with CapOne.
(I am not rate chasing)
:happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

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Index Fan
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Location: The great Midwest

Re: looking for a new (online) savings account home

Post by Index Fan » Wed Jul 11, 2018 10:17 am

I'm done rate chasing with online savings. Unless you have a LOT of money in them, small differences in rates don't matter that much to me.

Currently at Ally, earning 1.75%.
"Optimum est pati quod emendare non possis." | -Seneca

Lastrun
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Re: looking for a new (online) savings account home

Post by Lastrun » Wed Jul 11, 2018 10:46 am

You will see a lot of replies in threads about this and honestly all of these online banks are good options.

Rather than just say the bank and rate, I will post my reasons for migrating everything to Ally.

Of all of the major options Ally offered the most complete package for MY personal needs, including (in no order):

1. Decent website
2. Good 24/7 customer service. Some of the banks mentioned above do not have 24/7 service.
3. Competitive rates. Although sluggish to raise, their rates are consistently in the top 1%, which is good enough for me. This is perhaps the biggest gripe for many with Ally, but as others have said, I don't need to rate chase.
4. Full product line ranging from ordinary checking to 5 year CDs. I don't use all of these, but it is nice to have them in one place. Many only offer a high yield savings and limited CDs, no checking.
5. Decent ACH times
6. Ability to designate a beneficiary on the accounts. This is the main problem with CapitalOne 360 and why I left there.
7. Low CD withdraw penalties. Last time I checked Marcus's was 270 days on a 1 year CD.

Jordan4FI
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Location: Honduras

Re: looking for a new (online) savings account home

Post by Jordan4FI » Wed Jul 11, 2018 10:53 am

With how they keep going up, I would not just sit with one forever, It is going to be a constant change. Just like life, better comes along and we will need to adapt

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djpeteski
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Re: looking for a new (online) savings account home

Post by djpeteski » Wed Jul 11, 2018 11:13 am

We use American express personal savings, and are very happy. Keeping up with ally at 1.75%.

Your best bet might be to find out who has the best bonus and go with them.

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Oak&Elm
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Location: St Paul, MN

Re: looking for a new (online) savings account home

Post by Oak&Elm » Wed Jul 11, 2018 4:03 pm

I have had more online banks in the last 5 years than I should have, every 6 months there’s a good reason to switch and I did. IMO PurePoint or Live Oak Bank are great, if I had to choose just one it would be Live Oak Bank

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gunn_show
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Re: looking for a new (online) savings account home

Post by gunn_show » Wed Jul 11, 2018 4:26 pm

Larry2623 wrote:
Tue Jul 10, 2018 8:37 pm
I use GS Marcus...happy with rate and service
set my mom up with GS Marcus recently for savings + CD's, very easy to use, easy simple clean interface, very solid rates, would highly recommend
"The best life hack of all is to just put the work in and never give up." Bas Rutten

nasrullah
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Re: looking for a new (online) savings account home

Post by nasrullah » Wed Jul 11, 2018 6:27 pm

Ally has been very easy to work with. Haven't found 0.10% worth the hassle to go somewhere else.
"We have a lot to do, and very little time, so we must work slowly." Liviu Ciulei | | Thanks vineviz (https://www.bogleheads.org/forum/memberlist.php?mode=viewprofile&u=134698) for the quote.

Iorek
Posts: 911
Joined: Fri Mar 08, 2013 9:38 am

Re: looking for a new (online) savings account home

Post by Iorek » Wed Jul 11, 2018 7:23 pm

Thanks all. I don't feel the need to rate chase, but I am starting to take it a little personally that Emigrant Direct sees no need to even pretend to be competitive on rates, so maybe we'll switch to Ally.

meebers
Posts: 269
Joined: Sat Apr 14, 2012 7:20 pm
Location: Florida

Re: looking for a new (online) savings account home

Post by meebers » Wed Jul 11, 2018 8:00 pm

harmoniousmonk wrote:
Wed Jul 11, 2018 6:18 am
Sallie Mae currently 1.90%
Savings is 1.75%, MM = 1.90% 8-)

gclancer
Posts: 480
Joined: Sat Apr 27, 2013 10:34 am

Re: looking for a new (online) savings account home

Post by gclancer » Wed Jul 11, 2018 8:11 pm

Lastrun wrote:
Wed Jul 11, 2018 10:46 am
Of all of the major options Ally offered the most complete package
+1 I optimize everything in my financial life (to an irrational level) and used to rate chase so I’ve had every bank account under the sun. A couple years ago I consolidated everything with Ally since I thought they were the best and I haven’t looked back. I think it’s the best bank I’ve worked with and their rates have consistently be close enough to the best offered.

annielouise
Posts: 275
Joined: Wed May 14, 2008 4:11 pm

Re: looking for a new (online) savings account home

Post by annielouise » Wed Jul 11, 2018 8:14 pm

I have both Marcus (Goldman Sachs) and Synchrony. I definitely prefer Marcus for customer support and website. Who is better in rates varies by the week it seems. I believe Marcus is 1.8% and Synchrony is 1.75% today.

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