TIAA Direct - High Yield Savings 1.24 APY

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szmaine
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TIAA Direct - High Yield Savings 1.24 APY

Post by szmaine » Fri Feb 24, 2012 12:44 pm

Hi Folks,
Just an FYI post:

I just shut my ING Savings Account and opened one up at TIAA Direct - found that they were doing this by accident as I have a TIAA-CREF 403b and was searching the internet on various topics...found this article and opened an account for my emergency funds.

http://www.depositaccounts.com/blog/2012/02/tiaacref-launches-new-internet-bank-with-top-savings-account-rate.html

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randomwalk
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by randomwalk » Fri Feb 24, 2012 12:49 pm

Noticed this myself, as I was surprised to see that my American Express savings account just dropped to 0.75% APY. Not going to chase 50 basis points for what is likely a promotional rate to bring in new accounts, but I think more competition is usually a good thing.

sienasaintsfan
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by sienasaintsfan » Fri Feb 24, 2012 3:25 pm

that's a great rate, but just so you know, it's not FDIC insured.

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alpenglow
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by alpenglow » Fri Feb 24, 2012 6:17 pm

I was just looking into these accounts. They ARE FDIC insured.

http://tiaadirect.com/banking/help/faqs ... index.html

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kenyan
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by kenyan » Fri Feb 24, 2012 7:41 pm

A part of me dies every time I hear a miniscule rate such as this being touted as "High Yield."
Retirement investing is a marathon.

staustin
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by staustin » Fri Feb 24, 2012 11:25 pm

sigh.... first hsbc direct, then am ex online and now, looks like, i'm headed to tiaa direct. The sad yield chase continues.

JReality
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by JReality » Sat Feb 25, 2012 12:12 am

How long do you realistically expect them to keep the rate at 1.24% when others like American Express are all the way down to 0.75% ?

szmaine
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by szmaine » Sat Feb 25, 2012 7:45 am

I feel that they will want to stay ahead of ING Direct - why else would they name themselves TIAA Direct, it's a rather obvious challenge.

I confess to switching in part just to be doing SOMETHING. I'm in an obsessive fit of financial overhaul at the moment.

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burgrat
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by burgrat » Sat Feb 25, 2012 8:46 am

JReality wrote:How long do you realistically expect them to keep the rate at 1.24% when others like American Express are all the way down to 0.75% ?


I agree. It states that it is a promotional rate that can change at any time.

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nisiprius
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by nisiprius » Sat Feb 25, 2012 9:11 am

My personal rule of thumb has been that I notice when some other bank is paying 1/2% more than mine, I get restless when the gap widens to 3/4%, but I don't usually jump ship until it approaches 1%. I hate it when I go to the bother of changing banks and the good rate reverts to the mean in less than a year. The big problem is, always, trying to distinguish a policy of competing on rates versus a short-term teaser rate. My perception is that TIAA is a straight outfit that wouldn't seduce and abandon me, but my perception of TIAA might be a couple of decades out of date.

As a TIAA participant, I'm a little surprised (disappointed, even) that they've never even told me about TIAA Direct. I guess I'll be taking to see if they offer the convenience features of ING Direct (free automatic transfers, and the ability to instantly open as many different savings accounts as you want as soon as you've opened one).

Phoned 'em. They seem to be saying: yes, multiple accounts (up to five); yes, scheduled periodic transfers; no Roth IRA accounts at this time but at the moment I'm not really using my ING Direct Roth; and "public launch" a few weeks away, hence no publicity yet, but are accepting applications from the public.

Wow, ju$t a$ good a$ ING Direct and 0.44% more intere$t? Let me $ee (rubbing hand$ together, gloat, gloat), why on ju$t $10,000 that would be, um, $3.67/month more, $traight to the old bottom line-a-rooney! I could take the old wifey out for a couple of $enior coffee$ at McDonald'$ once a month on that and buy a pack of Juicy Fruit gum at the convenience $tore for de$$ert!
Last edited by nisiprius on Sat Feb 25, 2012 9:41 am, edited 5 times in total.
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sscritic
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by sscritic » Sat Feb 25, 2012 9:14 am

szmaine wrote:I feel that they will want to stay ahead of ING Direct - why else would they name themselves TIAA Direct

ING starts with I; TIAA starts with T. Treasury starts with T also. TIAA Direct is supposed to make you think of TreasuryDirect, not ING Direct.

P.S. Do you have a marketing degree? I don't, but I know my alphabet. :)

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nisiprius
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by nisiprius » Sat Feb 25, 2012 9:43 am

I'm sure the reason it is called "TIAA Direct" is because that's an anagram for "data tic ire."

In the past, as a TIAA-CREF participant, I did experience the occasional tic in data processing and it did evoke my ire. Nothing serious, never lost a penny, just lotsa phone calls.

If I decide to jump, I think I'll give 'em a few months to "try it on the dog" (TIAA employees) and work any kinks out, and let the DP folks gear up for the load. Being the first kid on the block to earn 0.44%/year more is not worth the aggravation of data tic ire.
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HueyLD
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by HueyLD » Sat Feb 25, 2012 9:58 am

sscritic wrote:ING starts with I; TIAA starts with T. Treasury starts with T also. TIAA Direct is supposed to make you think of TreasuryDirect, not ING Direct.

Can someone, who is not eligible to invest in TIAA funds, open a TIAA Direct account? Dear Mr. sscritic, I've googled (not binged), but could not find that information.

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Toons
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by Toons » Sat Feb 25, 2012 10:05 am

HueyLD wrote:
sscritic wrote:ING starts with I; TIAA starts with T. Treasury starts with T also. TIAA Direct is supposed to make you think of TreasuryDirect, not ING Direct.

Can someone, who is not eligible to invest in TIAA funds, open a TIAA Direct account? Dear Mr. sscritic, I've googled (not binged), but could not find that information.



From TIAA website :
"Am I eligible to open an account?
Our accounts are available to U.S. citizens and permanent residents of the 50 United States and the District of Columbia who are at least 18 years old and have a valid tax identification number."

http://tiaadirect.com/banking/help/faqs ... index.html

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The Wizard
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by The Wizard » Sat Feb 25, 2012 10:06 am

HueyLD wrote:Can someone, who is not eligible to invest in TIAA funds, open a TIAA Direct account? Dear Mr. sscritic, I've googled (not binged), but could not find that information.

It appears to be open to the general public.
You have to enter your SS# when registering, so I suppose they could check to see if you have other accounts with them, but there were no statements to that effect.

I just keep a modest amount in savings as a buffer for lumpy expenses. I didn't particularly care for the HSBC user interface so I dumped them. I like Ally Bank's interface, so I'm keeping them for now, along with TIAA Direct. We'll see how long they keep this introductory rate; once it drops down to prevailing market levels, I'll probably consolidate funds at the place with the least aggravating interface...
Attempted new signature...

ClaireTN
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by ClaireTN » Sat Feb 25, 2012 12:47 pm

It looks like they only plan to reimburse ATM fees from in-network machines. Here's what the website says: " Withdraw money at more than 400,000 ATMs with free transactions at over 23,000 ATMs in our network." The savings account might be attractive, but for me that would be a deal killer on the checking account.

sscritic
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by sscritic » Sat Feb 25, 2012 12:58 pm

ClaireTN wrote:It looks like they only plan to reimburse ATM fees from in-network machines. Here's what the website says: " Withdraw money at more than 400,000 ATMs with free transactions at over 23,000 ATMs in our network." The savings account might be attractive, but for me that would be a deal killer on the checking account.

I don't care if there are 10 million ATMs I can't use; I only care about the 23,000 I can use. Have you looked at the map of their locations? There are two kinds: in and out and out only. There are plenty of locations near where I live and near where I often go. Plus, I have other accounts with other ATM cards. I use the card and the ATM that is most convenient. Between my 3 cards, I have plenty of access. If I add a 4th card, I will have even greater access.

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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by ClaireTN » Sat Feb 25, 2012 2:31 pm

sscritic wrote:
ClaireTN wrote:It looks like they only plan to reimburse ATM fees from in-network machines. Here's what the website says: " Withdraw money at more than 400,000 ATMs with free transactions at over 23,000 ATMs in our network." The savings account might be attractive, but for me that would be a deal killer on the checking account.

I don't care if there are 10 million ATMs I can't use; I only care about the 23,000 I can use. Have you looked at the map of their locations? There are two kinds: in and out and out only. There are plenty of locations near where I live and near where I often go. Plus, I have other accounts with other ATM cards. I use the card and the ATM that is most convenient. Between my 3 cards, I have plenty of access. If I add a 4th card, I will have even greater access.


I did check. There are a few local ATMs that are near me, but I usually don't make a special trip to use one. If I need cash, I like to be able to use the ATM nearest wherever I happen to be. I'm lazy like that, so having a bank that reimburses all fees is helpful. Beyond local ATMs, though, I'm most likely to need to use an ATM when travelling, and I don't want the hassle of having to look up in-network locations in a strange city.

I do like TIAA-CREF, though, and the savings account looks good. Whether I decide to add another account will depend on how strong the laziness factor is :)

Edit: I realize that the ATM fee is a very small amount of money, but it bugs me to pay for cash.

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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by tfb » Sat Feb 25, 2012 3:16 pm

ClaireTN wrote:It looks like they only plan to reimburse ATM fees from in-network machines. Here's what the website says: " Withdraw money at more than 400,000 ATMs with free transactions at over 23,000 ATMs in our network." The savings account might be attractive, but for me that would be a deal killer on the checking account.

Likely they are using a surcharge-free ATM network, for example Allpoint. ING also doesn't reimburse ATM surcharges outside the network. The TIAA checking account has very low yield anyway. Most customers will probably keep the checking account local and just move savings from ING, AmEx, Discover, etc.
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nisiprius
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by nisiprius » Sat Feb 25, 2012 5:54 pm

HueyLD wrote:Can someone, who is not eligible to invest in TIAA funds, open a TIAA Direct account? Dear Mr. sscritic, I've googled (not binged), but could not find that information.
I didn't record the rep's words, but the impression I got is that there's every intention to open it to the general public, just not for a few weeks. They did not present it as exclusive or restricted to TIAA-CREF employees or participants, they merely offered it to and invited TIAA-CREF employees first. I think that's just the out-of-town tryout before they open on Broadway. In the interim they (said they would) open accounts to anyone who manages to discover their site without publicity and applies. But he said the public rollout would be in "a few weeks," so unless it's really important to you to earn an extra 0.44% for a few weeks, it certainly seems to me the sensible thing to do would just be to cool it and wait for them to announce it in their own way.

By the way, I think the general public can invest in TIAA-CREF mutual funds. Yes, you can purchase TIAA-CREF mutual funds via Vanguard Brokerage Services, for example, with via FundAccess, $20 transaction fee. Offhand I'm not sure why you'd want to--it is a good set of Vanguardesque funds but higher fees than Vanguard. When TIAA-CREF started offering them there was some speculation that they'd be such a low-cost provider that they'd give Vanguard a run for its money, but I don't think it's happened.

What the general public canNOT do is participate in TIAA-CREF (variable) annuities, particularly TIAA Traditional.
Last edited by nisiprius on Sat Feb 25, 2012 6:20 pm, edited 1 time in total.
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by Index Fan » Sat Feb 25, 2012 6:00 pm

Sounds great! Except for this part:

Rates may change at any time without prior notice, before or after the account is opened


http://tiaadirect.com/banking/bank/savings/index.html
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szmaine
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by szmaine » Sat Feb 25, 2012 6:16 pm

The Wizard wrote:
HueyLD wrote:
You have to enter your SS# when registering, so I suppose they could check to see if you have other accounts with them, but there were no statements to that effect.


No-I believe they are tapping your credit reports. One of the final stages of the account set up was answering a page of questions that surprised me.
What was the make of my first car? etc.
The only time I was ever asked such questions was when getting on-site approval for a Lowe's card when buying a fridge and wanted the promos.

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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by tfb » Sun Feb 26, 2012 1:18 am

Index Fan wrote:Sounds great! Except for this part:

Rates may change at any time without prior notice, before or after the account is opened


That's true pretty much everywhere else. Very few institutions promise their rates won't change before date X.
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Re: TIAA Direct - High Yield Savings 1.24 APY

Post by JReality » Mon Feb 27, 2012 9:12 pm

I imagine that if they were really serious about paying more in interest than the competition for any length of time, their CD rates would be better, but, unfortunately, that isn't the case. (their CD rates are lower than the HY savings acct. and that's still true even if you go out 2 years)

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