Dash Into Cash in the WSJ

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vbdoug
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Dash Into Cash in the WSJ

Post by vbdoug » Tue Dec 05, 2017 4:48 pm

On December 4 the WSJ published an article about cash on page R1.On page R2 they wrote "that short-term interest rates are rising--with hgh-yield bank savings paying 1% to 2%". I live in California and am currently using an on-line bank to get a rate of 1.4%.

I have seen lots of teaser ads but they frequently have low maximums, are promotional and short, or require one to make so may deposits or whatever.

Who is paying 2% and what are the restrictions?

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Kevin M
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Re: Dash Into Cash in the WSJ

Post by Kevin M » Tue Dec 05, 2017 5:56 pm

The highest savings account rate shown at DepositAccounts is 1.55%.

Kevin
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vbdoug
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Re: Dash Into Cash in the WSJ

Post by vbdoug » Wed Dec 06, 2017 5:14 pm

I see that rate of 1.55%. I am still curious as to how the WSJ saw fit to quote a rate of 1% to 2%.

Chuck
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Re: Dash Into Cash in the WSJ

Post by Chuck » Wed Dec 06, 2017 6:01 pm

2% is corporate bond territory. (VCSH) I can't see how else to get close to that.

letsgobobby
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Re: Dash Into Cash in the WSJ

Post by letsgobobby » Wed Dec 06, 2017 8:57 pm

Many reward checking accounts are paying 2% or more, but that is not new.

lakja
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Re: Dash Into Cash in the WSJ

Post by lakja » Wed Dec 06, 2017 9:17 pm

letsgobobby wrote:
Wed Dec 06, 2017 8:57 pm
Many reward checking accounts are paying 2% or more, but that is not new.
Post links.

letsgobobby
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Re: Dash Into Cash in the WSJ

Post by letsgobobby » Wed Dec 06, 2017 9:21 pm


need403bhelp
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Re: Dash Into Cash in the WSJ

Post by need403bhelp » Wed Dec 06, 2017 10:03 pm

lakja wrote:
Wed Dec 06, 2017 9:17 pm
letsgobobby wrote:
Wed Dec 06, 2017 8:57 pm
Many reward checking accounts are paying 2% or more, but that is not new.
Post links.
https://www.doctorofcredit.com/high-int ... gs-to-get/

lakja
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Re: Dash Into Cash in the WSJ

Post by lakja » Wed Dec 06, 2017 10:12 pm

need403bhelp wrote:
Wed Dec 06, 2017 10:03 pm
lakja wrote:
Wed Dec 06, 2017 9:17 pm
letsgobobby wrote:
Wed Dec 06, 2017 8:57 pm
Many reward checking accounts are paying 2% or more, but that is not new.
Post links.
https://www.doctorofcredit.com/high-int ... gs-to-get/
Appreciate it. I didn’t know you could get that high return, seems like a lot of requirements. I’ll just stick with my 1.25%.

need403bhelp
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Re: Dash Into Cash in the WSJ

Post by need403bhelp » Thu Dec 07, 2017 6:39 pm

lakja wrote:
Wed Dec 06, 2017 10:12 pm
need403bhelp wrote:
Wed Dec 06, 2017 10:03 pm
lakja wrote:
Wed Dec 06, 2017 9:17 pm
letsgobobby wrote:
Wed Dec 06, 2017 8:57 pm
Many reward checking accounts are paying 2% or more, but that is not new.
Post links.
https://www.doctorofcredit.com/high-int ... gs-to-get/
Appreciate it. I didn’t know you could get that high return, seems like a lot of requirements. I’ll just stick with my 1.25%.
Happy to help.

900ss
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Re: Dash Into Cash in the WSJ

Post by 900ss » Fri Dec 08, 2017 1:40 am

Silicon Valley, Santa Clara, Star 1 Credit Union is paying 1.15% interest, no special requirements. It's as easy as they come.

vbdoug
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Re: Dash Into Cash in the WSJ

Post by vbdoug » Sat Dec 09, 2017 3:01 pm

Thank you for all your responses. I currently have an online bank that pays 1.4% with minimal restrictions. For me, there are too many hoops to negotiate to obtain an extra half a point interest.

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nisiprius
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Re: Dash Into Cash in the WSJ

Post by nisiprius » Sat Dec 09, 2017 3:13 pm

I used a rewards checking account for about three years--don't remember just which years but in the time I used it, the interest rate dropped from 3.49% to 1.49%, while the maximum amount on which that interest rate could be earned dropped from $50,000 (just before I opened the account) to $20,000 to $10,000. Thus, the total maximum amount of annual interest that could be earned dropped from $698 to $150.(Well, not quite right... amounts over the limit did earn something, maybe 0.25%). I had in fact figured out how to jump through all the hoops with minimum disruption in my life. I would note that because the billing cycle started on a somewhat random day of the month, and because there was ambiguity about what billing cycle a particular POS purchase swipe would end up in, I felt I had to do about twenty swipes/month in order to be fairly certain of getting the twelve I needed.

At the end, I felt that the bank did exactly what they said they would do, no deception... and that it wasn't worth it to me.

I also (first time in about twenty years!) got an account-opening gift; it was very strange; it was three pieces of Corningware cookware, with three lids that didn't quite fit. I suspect it was some kind of second.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

jalbert
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Re: Dash Into Cash in the WSJ

Post by jalbert » Sat Dec 09, 2017 3:54 pm

Rewards checking accounts have all the restrictions because they are basically sharing with you some fraction of the debit card transaction fees you generate and earning the other fraction as profit.
Risk is not a guarantor of return.

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Kevin M
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Re: Dash Into Cash in the WSJ

Post by Kevin M » Sun Dec 10, 2017 12:03 pm

vbdoug wrote:
Sat Dec 09, 2017 3:01 pm
Thank you for all your responses. I currently have an online bank that pays 1.4% with minimal restrictions. For me, there are too many hoops to negotiate to obtain an extra half a point interest.
Actually, you can get an extra 1.6 points of interest (3%) on up to $15K with the Lake Michigan Credit Union RCA, and the hoops are about is easy as they get for RCAs. They haven't changed rate or balance cap in several years. Of course they could do so at any time, but now that short term rates have been rising, perhaps there's less of a risk of that.

Kevin
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letsgobobby
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Re: Dash Into Cash in the WSJ

Post by letsgobobby » Sun Dec 10, 2017 4:40 pm

Kevin M wrote:
Sun Dec 10, 2017 12:03 pm
vbdoug wrote:
Sat Dec 09, 2017 3:01 pm
Thank you for all your responses. I currently have an online bank that pays 1.4% with minimal restrictions. For me, there are too many hoops to negotiate to obtain an extra half a point interest.
Actually, you can get an extra 1.6 points of interest (3%) on up to $15K with the Lake Michigan Credit Union RCA, and the hoops are about is easy as they get for RCAs. They haven't changed rate or balance cap in several years. Of course they could do so at any time, but now that short term rates have been rising, perhaps there's less of a risk of that.

Kevin
if we make twenty-four Transactions per month at an average of five dollars each for two rewards accounts, that is $120 of transactions which generates approximately $60 in interest/dividends per month. I think I am costing the credit union More in dividends than they are earning in debit card transaction fees.

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Cycle
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Re: Dash Into Cash in the WSJ

Post by Cycle » Sun Dec 10, 2017 4:56 pm

Baxter Credit Union (BCU) pays 2% on balances up to 20,000 in their power plus checking account. They subtract from the payout any ATM fees you may have, but the ATM we use is free so it's pretty much a legit 2%. 20k is roughly 6mo expenses for us, so this works out nicely as our reserve cache :moneybag as well.

They also have unbeatable mortgage rates, though we don't take advantage of that anymore.

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