Marcus High-Yield Savings Account rate increases

[Marseille07]

July 29, 2022: Rate increased to 1.5% in this post

- Title was "Marcus High-Yield Savings Account rate now 0.6%"
- Moved into a new thread from: Marcus $100 bonus --admin LadyGeek]

Marcus HYSA now 0.6%. Ally still 0.5%. I think both go up more after the May FOMC.

[VictorStarr]

Marcus HYSA now 0.6%. Ally still 0.5%. I think both go up more after the May FOMC.

SoFi checking and savings have 1.25% APY and $300 bonus with direct deposit. Without direct deposit interest is 0.70%.

Here are details: https://www.sofi.com/banking/

[Marseille07]

Marcus HYSA now 0.6%. Ally still 0.5%. I think both go up more after the May FOMC.

SoFi checking and savings have 1.25% APY and $300 bonus with direct deposit. Without direct deposit interest is 0.70%.

Here are details: https://www.sofi.com/banking/

Yeah, direct deposit is doable but I don't like the string attached. Tbh every HYSA will be offering 1.25% by EOY imo.

[atdharris]

These HYSA rates will keep going up, especially with the Fed poised to hike by 50bps in May.

[JAZZISCOOL]

Marcus HYSA now 0.6%. Ally still 0.5%. I think both go up more after the May FOMC.

Marcus HYSA now 0.7% with an AARP membership for 2 years (any age can join AARP FWIW.)

[Marseille07]

Marcus HYSA now 0.6%. Ally still 0.5%. I think both go up more after the May FOMC.

Marcus HYSA now 0.7% with an AARP membership for 2 years (any age can join AARP FWIW.)

Very nice. I'm also waiting for their checking offering as well. They've been talking for a couple of years now, but all talk so far.

[Kookaburra]

[Thread merged into here --admin LadyGeek]

I just received notice that my Marcus Savings account rate increased by a whole 0.1%. They’re gonna have to do better than that if they wanna keep me. Anyone seeing competitors like Ally going up too?

[exodusNH]

I just received notice that my Marcus Savings account rate increased by a whole 0.1%. They’re gonna have to do better than that if they wanna keep me. Anyone seeing competitors like Ally going up too?

Vio money market is currently 0.71. They do still enforce the no-longer-federally-enforced 6 withdrawal limit.

It's my emergency fund, so I can't tie it up in short-term Treasuries. And breaking the fund into smaller chunks doesn't add enough interest to make it worth the hassle.

I am pulling $5500 out of my emergency fund to buy the rest of my I Bond allocation next week, and will top that back off over the rest of the year.

[cashheavy18]

+.10% if you're an AARP member!

[RandomWalkWS]

Capital One also .6% now. SoFi .7% before direct deposit booster.

[jebmke]

Six month TBills are 1.3%. Anything more than a little working capital at a bank makes no sense.

[jebmke]

It's my emergency fund, so I can't tie it up in short-term Treasuries. And breaking the fund into smaller chunks doesn't add enough interest to make it worth the hassle.

Why not? Treasury bills are perfectly liquid.

[HMSVictory]

Six month TBills are 1.3%. Anything more than a little working capital at a bank makes no sense.

The additional yield of short term treasury notes is not worth the risk of having to sell them prior to maturity for an emergency fund.

An extra 0.23% of yield on $50k isn't changing anyone's life. Now if you have $5M in your emergency fund that's a different story!

[HMSVictory]

Yes! Capital One is at 0.60% as well! Victory!

[Escapevelocity]

Marcus HYSA now 0.6%. Ally still 0.5%. I think both go up more after the May FOMC.

Marcus HYSA now 0.7% with an AARP membership for 2 years (any age can join AARP FWIW.)

Very nice. I'm also waiting for their checking offering as well. They've been talking for a couple of years now, but all talk so far.

Too little too late. I’m moving all my Marcus money to fidelity next week and buying treasuries

[CletusCaddy]

Have been with TMobile Money for months now at 1% APY.

[LadyGeek]

I combined Marseille07's and Kookaburra's threads into a single discussion.

[Timmay!]

+.10% if you're an AARP member!

+1 All you need to do is let Marcus know your AARP membership number, and they automatically add the .10% to rate changes across accounts.
I was happy to see 0.7% on my savings, and 0.75% on no-penalty CDs today.

[jebmke]

Six month TBills are 1.3%. Anything more than a little working capital at a bank makes no sense.

The additional yield of short term treasury notes is not worth the risk of having to sell them prior to maturity for an emergency fund.

An extra 0.23% of yield on $50k isn't changing anyone's life. Now if you have $5M in your emergency fund that's a different story!

I agree; that's why I don't have an emergency fund. I keep enough in an AMEX account to cover 4 quarters of estimated tax payments but that isn't a risk issue, it is more for convenience for my spouse in case I bite the dust mid-year - she won't have to worry about tax payments until April, 2023.

[exodusNH]

It's my emergency fund, so I can't tie it up in short-term Treasuries. And breaking the fund into smaller chunks doesn't add enough interest to make it worth the hassle.

Why not? Treasury bills are perfectly liquid.

As HMSVictory points out, the extra money isn't worth the hassle.

My EF is $25k. $6k is already in a short term bond fund. So, $19k to use, but I wouldn't want to tie 1/4 for more than 3 months. I'd need to ladder 0 (HYSA), 90, 120, 180 days. An extra 0.20 at each rung isn't worth it for the money involved.

[HMSVictory]

Same reason I don't do iBonds with my emergency fund.

7.61% is a fantastic risk free return but locking up the money for 12 months is a no go for emergency funds.

[anon_investor]

Same reason I don't do iBonds with my emergency fund.

7.61% is a fantastic risk free return but locking up the money for 12 months is a no go for emergency funds.

You can always layer in some I Bonds. It doesn't have to be all or nothing. It took a while, but I now have a 12 month EF with 9 months in I Bonds and 3 months HYSA/NPCDs.

[jebmke]

It's my emergency fund, so I can't tie it up in short-term Treasuries. And breaking the fund into smaller chunks doesn't add enough interest to make it worth the hassle.

Why not? Treasury bills are perfectly liquid.

As HMSVictory points out, the extra money isn't worth the hassle.

My EF is $25k. $6k is already in a short term bond fund. So, $19k to use, but I wouldn't want to tie 1/4 for more than 3 months. I'd need to ladder 0 (HYSA), 90, 120, 180 days. An extra 0.20 at each rung isn't worth it for the money involved.

agree; that's why I also don't pay attention to what the various banks are doing. My tax fund self-liquidates each year by January. The average balance isn't that much and it is pegged to a known liability. Other than that, my entire portfolio is my EF and has been since my early 40s.

[doraemon]

Yes! Capital One is at 0.60% as well! Victory!

I'm surprised Ally is the laggard here. My impression is that usually Capital One 360 is one of the last to raise. Also, Capital One never went to 0.50% -- they seemed stuck at 0.40% forever, but now jumped right up to 0.60%. If I were to bet (which I wouldn't), I'd say that Ally raises to 0.60% or maybe even 0.65% by Wednesday, April 27, at the latest. I'd be interested to know how much each of these institutions has in HYSA deposits. I suspect that. collectively, the amounts are staggering.

[anon_investor]

Yes! Capital One is at 0.60% as well! Victory!

I'm surprised Ally is the laggard here. My impression is that usually Capital One 360 is one of the last to raise. Also, Capital One never went to 0.50% -- they seemed stuck at 0.40% forever, but now jumped right up to 0.60%. If I were to bet (which I wouldn't), I'd say that Ally raises to 0.60% or maybe even 0.65% by Wednesday, April 27, at the latest. I'd be interested to know how much each of these institutions has in HYSA deposits. I suspect that. collectively, the amounts are staggering.

I could see that. It will be an arms race once the rates start going up.

[HMSVictory]

Yes! Capital One is at 0.60% as well! Victory!

I'm surprised Ally is the laggard here. My impression is that usually Capital One 360 is one of the last to raise. Also, Capital One never went to 0.50% -- they seemed stuck at 0.40% forever, but now jumped right up to 0.60%. If I were to bet (which I wouldn't), I'd say that Ally raises to 0.60% or maybe even 0.65% by Wednesday, April 27, at the latest. I'd be interested to know how much each of these institutions has in HYSA deposits. I suspect that. collectively, the amounts are staggering.

10.63T in total savings deposits.... most probably in accounts earning .05% or less at brick and mortar legacy banks.

4T in checking accounts alone. Its a sea of cash deposits.

[Jimsad]

I am tired of the miserly rates of my HYSA
I plan to move to treasuries

[graspau]

Discover Bank just moved from 0.50 to 0.60% today.

[BogleMelon]

Ally site is down since this morning, perhaps they are now cranking their APY adjusting machine?!

[anon_investor]

Ally site is down since this morning, perhaps they are now cranking their APY adjusting machine?!

Not yet...

[hudson]

[Moved into a new thread from: Marcus $100 bonus --admin LadyGeek]

Marcus HYSA now 0.6%. Ally still 0.5%. I think both go up more after the May FOMC.

Amex Bank is .6%
Live Oak Bank is .6%

I'll jump ship for .1%. For $10K, that's $10 a year...if my math is right. I throw nickels around like manhole covers.
I'll wait until after interest is paid to make the move...that's today.
I can transfer from Amex to Live Oak with a few clicks.
Amex does same day transfers, if you start early enough.

[FedGuy]

If I were to bet (which I wouldn't), I'd say that Ally raises to 0.60% or maybe even 0.65% by Wednesday, April 27, at the latest.

Still at 0.5% as of April 30.

[centrifuge41]

0.7% now. Or 0.8% if you have AARP.

[Cheez-It Guy]

I like it!

[Marseille07]

Looks like Marcus checking is finally coming this year? https://www.bankingdive.com/news/goldma ... em/622553/

I would prefer Marcus over Ally if this ever becomes a thing.

[VictorStarr]

Looks like Marcus checking is finally coming this year? https://www.bankingdive.com/news/goldma ... em/622553/

I would prefer Marcus over Ally if this ever becomes a thing.

Why do you think that Marcus checking will be better than Ally? At this point there is not reliable information about feature of this beta product.
American Express recently released new checking account - https://www.americanexpress.com/en-us/b ... -checking/ , with Amex at least you know that mobile app and customer service would be good.

[Marseille07]

Why do you think that Marcus checking will be better than Ally? At this point there is not reliable information about feature of this beta product.
American Express recently released new checking account - https://www.americanexpress.com/en-us/b ... -checking/ , with Amex at least you know that mobile app and customer service would be good.

Just my observation so far that's all. I know Ally unnecessarily holds my money for 3 days every time I ACH. They're also slow to raise APY whereas Marcus is quick. Ally's auto overdraft feature is excellent, although I'm assuming Marcus would provide something similar.

[JAZZISCOOL]

0.7% now. Or 0.8% if you have AARP.

[spickups09]

PenFed just raised their rate to 0.7%.

[Onlineid3089]

Just checked Ally. Savings still at .6, but the 11 month no penalty CD is at .7 now so I did an early withdrawal out of one of those and reopened a new account.

[douginct]

Just checked Ally. Savings still at .6, but the 11 month no penalty CD is at .7 now so I did an early withdrawal out of one of those and reopened a new account.

Did the same today.

[Dr Bigglesworth]

Bask Bank is offering 1.25% with no strings attached. Google says they're connected to Texas Capital Bank, seems reputable enough. I moved my funds from Marcus to Bask after seeing the paltry increase to 0.7, will update if I have any problems.

[Chip Munk]

Just checked Ally. Savings still at .6, but the 11 month no penalty CD is at .7 now so I did an early withdrawal out of one of those and reopened a new account.

I have a No Penalty CD at Ally and would like to do this too to take advantage of the higher rate. Is it possible to have the funds from the no penalty CD you are closing transfer directly to the new NP CD? I don't have a savings or checking account at Ally, and would like to avoid having the funds from the closed CD go from Ally to my checking account at another bank, and then back to Ally for the new CD. I could open a savings account at Ally just to facilitate the transfer, but would prefer to avoid opening yet another account unless that's the only way to transfer the funds between NP CDs within Ally. Thanks.

[Kookaburra]

For those that want the liquidity of a savings account (vs say a Treasury bill), why would you go with Marcus over Vanguard Municipal MM Fund? The latter currently has a federal tax-free yield of 0.63%. That’s over 0.8% at the 24% tax bracket.

[Onlineid3089]

Just checked Ally. Savings still at .6, but the 11 month no penalty CD is at .7 now so I did an early withdrawal out of one of those and reopened a new account.

I have a No Penalty CD at Ally and would like to do this too to take advantage of the higher rate. Is it possible to have the funds from the no penalty CD you are closing transfer directly to the new NP CD? I don't have a savings or checking account at Ally, and would like to avoid having the funds from the closed CD go from Ally to my checking account at another bank, and then back to Ally for the new CD. I could open a savings account at Ally just to facilitate the transfer, but would prefer to avoid opening yet another account unless that's the only way to transfer the funds between NP CDs within Ally. Thanks.

I would guess probably not, but don't know for sure.

I don't know if they let you open the new CD without funding it immediately? If so, you might be able to pick that as the account to distribute your early withdrawal? No idea if that is an option, I have the savings account and just send everything through there.

[atdharris]

I never thought I'd be so happy to see a 0.7% return on my money.

[GeMoney]

Synchrony Bank went up to 0.85% today.

[atdharris]

Synchrony Bank went up to 0.85% today.

I did kind of expect Marcus to bump it to 0.8% as well given the Fed hiked 50bps this time. Oh well.

[Chip Munk]

Just checked Ally. Savings still at .6, but the 11 month no penalty CD is at .7 now so I did an early withdrawal out of one of those and reopened a new account.

I have a No Penalty CD at Ally and would like to do this too to take advantage of the higher rate. Is it possible to have the funds from the no penalty CD you are closing transfer directly to the new NP CD? I don't have a savings or checking account at Ally, and would like to avoid having the funds from the closed CD go from Ally to my checking account at another bank, and then back to Ally for the new CD. I could open a savings account at Ally just to facilitate the transfer, but would prefer to avoid opening yet another account unless that's the only way to transfer the funds between NP CDs within Ally. Thanks.

I would guess probably not, but don't know for sure.

I don't know if they let you open the new CD without funding it immediately? If so, you might be able to pick that as the account to distribute your early withdrawal? No idea if that is an option, I have the savings account and just send everything through there.

Thanks for replying. I suspect I'll need to open a savings account there.

[Boatguy]

I just moved from T-Mobile to SoFi. So far so good…and 1.25% plus $300 bonus for direct deposits works for me.