Marcus High-Yield Savings Account rate increases

[anon_investor]

Marcus now up to 3.90% as of this morning.

Marcus no longer seems to be the leader in rates it once was. Still beating Captial One though.

Ally money market accounts have been 4% for quite some times now.

But money market funds have been over 4% for pretty much the entire year. For example, TTTXX is 4.51% now and is mostly exempt from state/local income taxes (over 96% exempt in 2022).

When I go to Ally.com the landing page states 3.75% for HYSAs - all tiers.
Marcus and Ally tend to stay close with eachother when not comparing Apples to Oranges. MM and HYSAs are different account types.

Ally money market accounts (FDIC insured) are 4%:
https://www.ally.com/bank/money-market-account/

[SmileyFace]

Marcus now up to 3.90% as of this morning.

Marcus no longer seems to be the leader in rates it once was. Still beating Captial One though.

Ally money market accounts have been 4% for quite some times now.

But money market funds have been over 4% for pretty much the entire year. For example, TTTXX is 4.51% now and is mostly exempt from state/local income taxes (over 96% exempt in 2022).

When I go to Ally.com the landing page states 3.75% for HYSAs - all tiers.
Marcus and Ally tend to stay close with eachother when not comparing Apples to Oranges. MM and HYSAs are different account types.

Ally money market accounts (FDIC insured) are 4%:
https://www.ally.com/bank/money-market-account/

Yup - didn't dispute that.
But their savings account that is comparable to Marcus's Savings Accounts are at 3.75%:
https://www.ally.com/bank/online-savings-account/

Apples to Apples for someone that wants a savings account.

[atdharris]

Hard to choose a HYSA these days with a treasury MMF yielding 4.51% or more.

[patrick]

Hard to choose a HYSA these days with a treasury MMF yielding 4.51% or more.

UFB and CFG are both at 5.02%.

[fetch5482]

With the 1% referral bonus bump, this comes to 4.90% for me now - slightly beating VMFXX.

[anon_investor]

Hard to choose a HYSA these days with a treasury MMF yielding 4.51% or more.

Especially if you have state/local income taxes, that tax equivalent yield is even better.

[SmileyFace]

For those interested in MMAs/MMFs there is another thread on those here:
viewtopic.php?t=402509

[Cheez-It Guy]

Several days old, but 4.15% base rate now.

[Cheez-It Guy]

No updates in a while. The current base rate is at 4.30%. Starting to lag money markets pretty badly if you don't have a promotional bump on the rate, but still has the edge on Ally.

[SquawkIdent]

VFMXX is at 5.26%. I have no idea why anyone would have money invested here instead of a higher interest rate bearing vehicle with the same risk. Everyday you’re losing money.

[fetch5482]

VFMXX is at 5.26%. I have no idea why anyone would have money invested here instead of a higher interest rate bearing vehicle with the same risk. Everyday you’re losing money.

With the 1% promotional bump, it's 5.30% with fdic insurance, so in that case it's a no-brainer over VMFXX.

I'm in CA so I keep part of my money here, and part in VUSXX. In recent months VUSXX has made a concentrated move towards more Treasury, so at this point it seems far more likely that VUSXX will be partially state tax deductible. I'm now slowly also moving more towards VUSXX due to that.

[SquawkIdent]

VFMXX is at 5.26%. I have no idea why anyone would have money invested here instead of a higher interest rate bearing vehicle with the same risk. Everyday you’re losing money.

With the 1% promotional bump, it's 5.30% with fdic insurance, so in that case it's a no-brainer over VMFXX.

I'm in CA so I keep part of my money here, and part in VUSXX. In recent months VUSXX has made a concentrated move towards more Treasury, so at this point it seems far more likely that VUSXX will be partially state tax deductible. I'm now slowly also moving more towards VUSXX due to that.

How do you get a 1% promotional bump?

[indexfund56]

VFMXX is at 5.26%. I have no idea why anyone would have money invested here instead of a higher interest rate bearing vehicle with the same risk. Everyday you’re losing money.

With the 1% promotional bump, it's 5.30% with fdic insurance, so in that case it's a no-brainer over VMFXX.

I'm in CA so I keep part of my money here, and part in VUSXX. In recent months VUSXX has made a concentrated move towards more Treasury, so at this point it seems far more likely that VUSXX will be partially state tax deductible. I'm now slowly also moving more towards VUSXX due to that.

How do you get a 1% promotional bump?

Pretty sure this is what is being referenced:

https://www.marcus.com/us/en/savings/hi ... s/referral

[teamDE]

There are referral code subs on reddit where you can post your referral link and have your five slots of referrals filled up pretty quick. That's over a year of the 1% bonus.

I like Marcus for an EF because it's totally separate from any of my brokerages and easy to forget about or separate from aggregators/calculators, etc. This would be true for any online HYSA, I just mean compared to using money markets at my brokerage.

[fetch5482]

How do you get a 1% promotional bump?

Pretty much what others said, referral bonus. I've referred 5 people (max allowed in a calendar year), so I have +1% bump over their advertised rates until March 2024.

[SquawkIdent]

VFMXX is at 5.26%. I have no idea why anyone would have money invested here instead of a higher interest rate bearing vehicle with the same risk. Everyday you’re losing money.

With the 1% promotional bump, it's 5.30% with fdic insurance, so in that case it's a no-brainer over VMFXX.

I'm in CA so I keep part of my money here, and part in VUSXX. In recent months VUSXX has made a concentrated move towards more Treasury, so at this point it seems far more likely that VUSXX will be partially state tax deductible. I'm now slowly also moving more towards VUSXX due to that.

How do you get a 1% promotional bump?

Pretty sure this is what is being referenced:

https://www.marcus.com/us/en/savings/hi ... s/referral

Thanks. The link shows a 3 month promo bump. YMMV but not worth my time. I’ll stick with VFMXX, already at 5.28% with no effort.

[Cheez-It Guy]

Received email today notifying of base rate bump from 4.30% to 4.40%. I know about VMFXX and use it, but reporting this for a running history of rates as much as anything.

[fetch5482]

Received email today notifying of base rate bump from 4.30% to 4.40%. I know about VMFXX and use it, but reporting this for a running history of rates as much as anything.

Marcus with the 1% referral bonus now does yield higher than VMFXX, so its pretty good for a few of us. But not as good as VUSXX for those of us with state income taxes.