Is it worth moving

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
raamakoti
Posts: 167
Joined: Mon Jul 31, 2017 10:20 am

Is it worth moving

Post by raamakoti »

My Online savings account is offering me 2.1%. and it has $50k as my rainy day fund.
Citizen access is offering 2.35% - is it worth moving money to get additional 0.25% and create another account.
Over the years I had done that, now total about 9 banks have my personal info and the junk just keep piling up after opening a new account.
Olemiss540
Posts: 1608
Joined: Fri Aug 18, 2017 8:46 pm

Re: Is it worth moving

Post by Olemiss540 »

Consider VUSXX with a 2.3% yield and state tax free. Dont have to chase rates as they go up when rates go up.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.
Topic Author
raamakoti
Posts: 167
Joined: Mon Jul 31, 2017 10:20 am

Re: Is it worth moving

Post by raamakoti »

Olemiss540 wrote: Fri Jan 18, 2019 5:37 pm Consider VUSXX with a 2.3% yield and state tax free. Dont have to chase rates as they go up when rates go up.
It has expense ration of 0.09% -
whats the maintenance fee for this account?
Olemiss540
Posts: 1608
Joined: Fri Aug 18, 2017 8:46 pm

Re: Is it worth moving

Post by Olemiss540 »

raamakoti wrote: Fri Jan 18, 2019 5:40 pm
Olemiss540 wrote: Fri Jan 18, 2019 5:37 pm Consider VUSXX with a 2.3% yield and state tax free. Dont have to chase rates as they go up when rates go up.
It has expense ration of 0.09% -
whats the maintenance fee for this account?
Zero fees. The SEC yield is net of expenses (after expnses).
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.
boglenomics
Posts: 50
Joined: Fri Jan 18, 2019 5:37 pm

Re: Is it worth moving

Post by boglenomics »

I would stay with your current bank if you are happy with the service.

Despite my assessment of other banks currently offering higher interest rates I continue to stay with my current provider and have for years. If I was always chasing the extra 0.1 - 0.2% because another provider adjusts to the rate increases quicker I would have quite a headache trying to do budgeting, opening new accounts, closing the old ones, and moving the money around.

The cost of the extra hassle is just not worth it. My current bank has been good to me and the customer service is great. They might be a little slow to catch up to the newest rates but they always get there. If that's the case with your bank I would just "stay the course" and spend your energy elsewhere.
z3r0c00l
Posts: 2002
Joined: Fri Jul 06, 2012 11:43 am
Location: NYC
Contact:

Re: Is it worth moving

Post by z3r0c00l »

raamakoti wrote: Fri Jan 18, 2019 5:40 pm
Olemiss540 wrote: Fri Jan 18, 2019 5:37 pm Consider VUSXX with a 2.3% yield and state tax free. Dont have to chase rates as they go up when rates go up.
It has expense ration of 0.09% -
whats the maintenance fee for this account?
I believe the yield is net of the fee, no?

I wouldn't switch banks unless the new one had a special offer such as this one that was just discussed elsewhere today

https://www.capitalone.com/celebrate200/

You get $500 bonus with $50,000 opening deposit. So that is what, 3% for the year? Then you can consider moving after.
User avatar
JoMoney
Posts: 10522
Joined: Tue Jul 23, 2013 5:31 am

Re: Is it worth moving

Post by JoMoney »

I probably wouldn't open another account, but it does mean an extra $125 a year (assuming rates and account balance stays the same)... which makes it hard to justify not doing it.
What I've done is switch from 2.0% bank money market account to my Vanguard Federal Money Market settlement fund at 2.3%. Since I already had both accounts, it didn't require me to open anything new.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
MotoTrojan
Posts: 10727
Joined: Wed Feb 01, 2017 8:39 pm

Re: Is it worth moving

Post by MotoTrojan »

z3r0c00l wrote: Fri Jan 18, 2019 5:47 pm
raamakoti wrote: Fri Jan 18, 2019 5:40 pm
Olemiss540 wrote: Fri Jan 18, 2019 5:37 pm Consider VUSXX with a 2.3% yield and state tax free. Dont have to chase rates as they go up when rates go up.
It has expense ration of 0.09% -
whats the maintenance fee for this account?
I believe the yield is net of the fee, no?

I wouldn't switch banks unless the new one had a special offer such as this one that was just discussed elsewhere today

https://www.capitalone.com/celebrate200/

You get $500 bonus with $50,000 opening deposit. So that is what, 3% for the year? Then you can consider moving after.
Looks like they got smart and changed the terms. You used to need $10K or $50K of contributions/deposits, but you could withdraw it and use the same funds for the next one (deposit $25K twice, rather than $50K). Hard to do this many times in only 10 days, but with 1/3-1/2 of the total amount it can easily be done.

I did this a couple months ago, pulled the money the next day (got the bonus shortly there-after) and moved it into the next bank bonus.
Post Reply