The Best High Yield Savings Account

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Topic Author
esteen
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The Best High Yield Savings Account

Post by esteen » Thu May 30, 2019 12:26 pm

In the Investing forum someone recently posted the news that Wealthfront is offering 2.51% APY savings account, FDIC insured up to $1M, as the race for high yield savings offerings continues. I posted a question there but upon reflection it really belongs in this forum:

I'm in the process of moving a good chunk of my emergency fund from a (virtually) non interest bearing account to a high-yield savings account. Wealthfront is technically the highest, but CitiBank (2.36%), Ally (2.20%), etc. are almost as high and aren't "middlemen" with a shaky financial structure like Wealthfront.

My question is: is there a "gold standard" high yield savings account that BH forum-goers typically recommend?

Thanks all!
-ES

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9-5 Suited
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Re: The Best High Yield Savings Account

Post by 9-5 Suited » Thu May 30, 2019 12:31 pm

I keep about $20K in HYS, so every 0.10% gain in interest rate is about $20 per year. After that realization, I just picked one and stopped switching around. Better things to worry about for 99% of people. Ally, CO360, Redneck Bank, Synchrony ... all pretty darn similar and the leader of the pack changes every now and then.

flyphotoguy
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Re: The Best High Yield Savings Account

Post by flyphotoguy » Thu May 30, 2019 12:36 pm

I've had MySavingsDirect account for a long time, I think it's 2.4% now. The difference vs other HYS is just too small to move my EF out of it.

Jack FFR1846
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Re: The Best High Yield Savings Account

Post by Jack FFR1846 » Thu May 30, 2019 12:37 pm

I keep $50k (their max) in Redneck Bank's 2.5% Megamoney account. I've noticed that when anyone else goes higher, they wait 2 or 3 weeks then match or beat them. I've been happy with them. I use Ally as a backup.
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surfstar
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Re: The Best High Yield Savings Account

Post by surfstar » Thu May 30, 2019 12:39 pm

^+1 (I don't have that much in there though)
All America / Redneck Bank - Mega Money Market Account
2.5%, up to $50k

geospatial
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Re: The Best High Yield Savings Account

Post by geospatial » Thu May 30, 2019 12:40 pm

https://www.depositaccounts.com/blog/ba ... ts-survey/

Ally is often mentioned. Even though they're not the highest rate, they have an easy to use and understand web interface and their ACH transfer limits are high. If I wasn't grandfathered into a 2.5% rate somewhere else, I'd probably also consider the Purepoint Financial 13 month no penalty CD.

FYI, it was noted on depositaccounts that All America is going to drop their rates to 2.4% soon.

Van Down By Da River
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Re: The Best High Yield Savings Account

Post by Van Down By Da River » Thu May 30, 2019 12:44 pm

We use American Express, not the highest interest rate, but we use them for our everyday credit card and are happy with them and didn't want to over-complicate things by opening up a new account with a new bank. And like the last guy said, unless you have a huge amount in there, the 0.1 - 0.2 percentage difference equals literally a few bucks a year, so my 2 cents is to just go with the bank you like

mhalley
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Re: The Best High Yield Savings Account

Post by mhalley » Thu May 30, 2019 12:44 pm

As the yield on mm has increased, I think just putting it in vanguard prime mm is close enough as opposed to trying to chase a couple of bp. It’s up to 2.4% now.

tumbleweedsusan
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Re: The Best High Yield Savings Account

Post by tumbleweedsusan » Thu May 30, 2019 12:50 pm

I switched from Citi (.12%) to Capital One 360 last year.
I love it. The app & website are nicely designed and easy to use. No international exchange fee, Citibank forces you to have $50,000 to get this privilege.

2% for balances over $10,000.

Wish I did it years ago.

greenflamingo
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Re: The Best High Yield Savings Account

Post by greenflamingo » Thu May 30, 2019 12:55 pm

I use AMEX. They're high enough, and have been competitive with the best rates for several years now. I value having my time (compared to chasing rates) and having accounts all linked/verified with one another so I can make a quick transfer more than chasing a few bucks a year.

withrye
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Re: The Best High Yield Savings Account

Post by withrye » Thu May 30, 2019 12:57 pm

A few months back I switched from CapOne360 to SoFi Money.

2.25% on all dollars, and the account acts like checking with a debit card, checks, ATM reimbursement, bill pay, etc. No direct deposit or transaction hoops.

At CapOne 360 I only for 2% in the Money Market account ($10k minimum) and 1% in savings and 0.2% in checking. So it was three accounts for a lower yield and less flexibility regarding moving money between MM and savings to checking.

aristotelian
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Re: The Best High Yield Savings Account

Post by aristotelian » Thu May 30, 2019 1:11 pm

They are pretty much the same. Capital One and BBVA Compass have bonus offers for MM accounts around 2.4%.

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jakehefty17
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Re: The Best High Yield Savings Account

Post by jakehefty17 » Thu May 30, 2019 1:36 pm

Ally is a good all-around option, I used them for a while. They stay competitive and the interface is intuitive. Good rates and customer service.

I just needed a checking account and taxable account though. If I had need for a HYSA and/or CDs, I would definitely consider Ally.
"The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." -Charles Bukowski

patrick
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Re: The Best High Yield Savings Account

Post by patrick » Thu May 30, 2019 1:37 pm

I'd suggest looking at https://www.doctorofcredit.com/high-int ... gs-to-get/ for all of the good options. My current favorite is the Orion rewards checking account, which pays higher than savings (subject to some limits of course).

atdharris
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Re: The Best High Yield Savings Account

Post by atdharris » Thu May 30, 2019 1:40 pm

I use Amex for mine. They aren't the highest, but they have always provided me with the best customer service and a .1% difference is not a huge deal for me to keep moving money to X number of accounts.

MotoTrojan
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Re: The Best High Yield Savings Account

Post by MotoTrojan » Thu May 30, 2019 1:45 pm

Fidelity CMA tied to brokerage. The slightly lower yield is made up by my “checking” account balance accruing it too. Brokerage allows direct deposits to immediately go into SPAXX and I’ll occasionally move to SPRXX for a tad more yield.

Emergency Fund can also be rolled in t-bills to get a tax-adjusted yield closer to 2.6%.

itsgot8
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Re: The Best High Yield Savings Account

Post by itsgot8 » Thu May 30, 2019 1:53 pm

Barclay's and Marcus are good options too, for HYS.

GlennK
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Re: The Best High Yield Savings Account

Post by GlennK » Thu May 30, 2019 2:21 pm

LIve Oak Bank (2.3% currently) generally remains competitive also. Especially their 1 year CDs.

Only point of caution is it took me a while to get signed up with them. Not sure that was normal or not but now that I am signed up online, easy to use web site.

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Ice-9
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Re: The Best High Yield Savings Account

Post by Ice-9 » Thu May 30, 2019 2:30 pm

One that often gets overlooked is FNBODirect.com currently with 2.25% savings and 0.65% checking (with no hoops.)

Back in 2005-6, I was a serious rate chaser for whatever reason. I opened accounts with no less than five different online banks trying to get the best rate. Of those, most have lowered their rates over time, and I have a number of old accounts with nothing in them because the rate is no longer competitive.

For what it's worth, FNBO Direct is the only one of those accounts of mine that has stayed competitive the entire decade+ since I was a rate chaser, and it's where I've gotten used to putting my cash that I want more liquid than Treasury Direct.

mariezzz
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Re: The Best High Yield Savings Account

Post by mariezzz » Thu May 30, 2019 2:45 pm

There are threads about this at least weekly. I'd suggest doing a few searches to find them.

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Phineas J. Whoopee
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Re: The Best High Yield Savings Account

Post by Phineas J. Whoopee » Thu May 30, 2019 2:48 pm

Echoing geospatial upthread, the US gold standard -- if I may use the expression -- for looking such things up is Deposit Accounts.

If by best you mean the one that consistently has a higher APY than all the others, without restrictions, there ain't none. You deposits your money and you takes your choice.

PJW

retiredflyboy
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Re: The Best High Yield Savings Account

Post by retiredflyboy » Thu May 30, 2019 4:06 pm

I use Goldman (Marcus) Sachs and Ally bank.
Facts are stubborn things. Everything works until it doesn’t.

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greg24
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Re: The Best High Yield Savings Account

Post by greg24 » Thu May 30, 2019 4:12 pm

Vanguard Prime Money Market.

Topic Author
esteen
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Re: The Best High Yield Savings Account

Post by esteen » Thu May 30, 2019 11:40 pm

Thanks for all the replies everyone, this is super helpful. I see there is no clear "Top 5" but a lot of players that have varying levels of yield, accessibility, user interface highlights, and 'staying power'. I'll just have to choose one that is a decent marriage of all aspects and stick to it.

-ES

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Sandtrap
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Re: The Best High Yield Savings Account

Post by Sandtrap » Thu May 30, 2019 11:42 pm

mhalley wrote:
Thu May 30, 2019 12:44 pm
As the yield on mm has increased, I think just putting it in vanguard prime mm is close enough as opposed to trying to chase a couple of bp. It’s up to 2.4% now.
+1
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Kmzizzle
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Re: The Best High Yield Savings Account

Post by Kmzizzle » Fri May 31, 2019 12:23 am

VUSXX

hungrywave
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Re: The Best High Yield Savings Account

Post by hungrywave » Wed Dec 04, 2019 1:24 pm

Is there any company that can replace my Chase checking but with a higher yield?

My needs:
- Bill pay for credit cards (electronic) and rent (paper check)
- No-fee ATMs
- Easy, no-fee transfers to and from my brokerage accounts
- Generally good online interface

Should I just stick with Chase checking and minimize the amount of cash I have in my account?

:sharebeer
The world is largely random so don't sweat the small stuff.

anon_investor
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Re: The Best High Yield Savings Account

Post by anon_investor » Wed Dec 04, 2019 1:30 pm

hungrywave wrote:
Wed Dec 04, 2019 1:24 pm
Is there any company that can replace my Chase checking but with a higher yield?

My needs:
- Bill pay for credit cards (electronic) and rent (paper check)
There is free bill pay, and free paper checks.
- No-fee ATMs
ATMs are free to use at AllPoint ATMs otherwise Ally Bank reimburses up to $10/mo in ATM fees incurred.

- Easy, no-fee transfers to and from my brokerage accounts
Free ACH transfers, I routinely have money go back and forth between Ally Bank and Vanguard without any issues.

- Generally good online interface
I think their website and mobile app are both very good.

Should I just stick with Chase checking and minimize the amount of cash I have in my account?

:sharebeer
Check out Ally Bank. It pretty much checks all of your boxes.

hungrywave
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Re: The Best High Yield Savings Account

Post by hungrywave » Wed Dec 04, 2019 1:33 pm

anon_investor wrote:
Wed Dec 04, 2019 1:30 pm
hungrywave wrote:
Wed Dec 04, 2019 1:24 pm
Is there any company that can replace my Chase checking but with a higher yield?

My needs:
- Bill pay for credit cards (electronic) and rent (paper check)
There is free bill pay, and free paper checks.
- No-fee ATMs
ATMs are free to use at AllPoint ATMs otherwise Ally Bank reimburses up to $10/mo in ATM fees incurred.

- Easy, no-fee transfers to and from my brokerage accounts
Free ACH transfers, I routinely have money go back and forth between Ally Bank and Vanguard without any issues.

- Generally good online interface
I think their website and mobile app are both very good.

Should I just stick with Chase checking and minimize the amount of cash I have in my account?

:sharebeer
Check out Ally Bank. It pretty much checks all of your boxes.
Wow! Cool! Thank you, anon! :)
The world is largely random so don't sweat the small stuff.

furwut
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Re: The Best High Yield Savings Account

Post by furwut » Wed Dec 04, 2019 1:34 pm

hungrywave wrote:
Wed Dec 04, 2019 1:24 pm
Should I just stick with Chase checking and minimize the amount of cash I have in my account?
Simplicity doesn’t get enough attention in this forum but, for cash needs, that and ease of use trumps absolute return in my book.

Keep your cash holdings to a minimum and the difference is truly trivial.

Happy Ally Bank Checking & Savings Account holder. CapitalOne is also good.

hungrywave
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Re: The Best High Yield Savings Account

Post by hungrywave » Wed Dec 04, 2019 1:39 pm

furwut wrote:
Wed Dec 04, 2019 1:34 pm
hungrywave wrote:
Wed Dec 04, 2019 1:24 pm
Should I just stick with Chase checking and minimize the amount of cash I have in my account?
Simplicity doesn’t get enough attention in this forum but, for cash needs, that and ease of use trumps absolute return in my book.

Keep your cash holdings to a minimum and the difference is truly trivial.

Happy Ally Bank Checking & Savings Account holder. CapitalOne is also good.
I agree, furwut, that simplicity is underrated.

Do you feel that the simplicity/ease-of-use of Ally matches that of mainstream banks?
The world is largely random so don't sweat the small stuff.

snailderby
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Re: The Best High Yield Savings Account

Post by snailderby » Wed Dec 04, 2019 3:45 pm

hungrywave wrote:
Wed Dec 04, 2019 1:24 pm
Is there any company that can replace my Chase checking but with a higher yield?
Checking Accounts

SoFi has a hybrid checking / savings account that currently pays 1.60%. Simple pays 2.02%-2.15%, but only for money in a "Protected Goals Account." Redneck Bank pays 2.5% on its checking account, but only for the first $10,000. TAB Bank and Orion FCU pay 4%, but you have to make a certain number of debit-card signature-based transactions every month to get that interest rate.

Or you can check out this thread about how to set up Fidelity to function like an online checking account that pays money market interest rates: viewtopic.php?t=266538.

Savings Accounts

If you're looking for an online savings account, there are a ton of good options out there, including Ally, American Express, Barclays, Goldman Sachs, and FitnessBank (if you meet certain savings goals).
Last edited by snailderby on Wed Dec 04, 2019 3:53 pm, edited 1 time in total.

hungrywave
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Re: The Best High Yield Savings Account

Post by hungrywave » Wed Dec 04, 2019 3:51 pm

snailderby wrote:
Wed Dec 04, 2019 3:45 pm
hungrywave wrote:
Wed Dec 04, 2019 1:24 pm
Is there any company that can replace my Chase checking but with a higher yield?
Checking Account

SoFi has a hybrid checking / savings account that currently pays 1.60%. Simple pays 2.02%-2.15%, but only for money in a "Protected Goals Account." Redneck Bank pays 2.5% on its checking account, but only for the first $10,000. TAB Bank and Orion FCU pay 4%, but you have to make a certain number of debit-card signature-based transactions every month to get that interest rate.

Or you can check out this thread about how to setup Fidelity to essentially function like an online checking account that pays money market interest rates: viewtopic.php?t=266538.

Savings Account

If you're looking for an online savings account, there are a lot of choices, including Ally, American Express, Barclays, Goldman Sachs, and FitnessBank (if you meet certain savings goals).
Thank you, snailderby!

SoFi sounds like it may be the best option maybe! Any other happy SoFi Money users out there?

Ally has a limit of 6 transactions per cycle. Between direct deposits and credit card payments, my wife and I would be way over that limit. Am I interpreting this correctly? How do you Ally users deal with this limit?
The world is largely random so don't sweat the small stuff.

furwut
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Re: The Best High Yield Savings Account

Post by furwut » Wed Dec 04, 2019 3:59 pm

hungrywave wrote:
Wed Dec 04, 2019 3:51 pm
Ally has a limit of 6 transactions per cycle. Between direct deposits and credit card payments, my wife and I would be way over that limit. Am I interpreting this correctly? How do you Ally users deal with this limit?
i believe that limit is per account and withdrawals, not deposits are what count. Some have set up multiple saving accounts. I do all my auto-pay activity from checking.

jumbopapa
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Re: The Best High Yield Savings Account

Post by jumbopapa » Wed Dec 04, 2019 4:01 pm

I'm going for simplicity. I'm transitioning to using Fidelity for all banking purposes (other than credit cards). It's easy to just have it all in one pot and I don't have to worry about updating DD to go to one account or another. You still get a competitive rate.

furwut
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Re: The Best High Yield Savings Account

Post by furwut » Wed Dec 04, 2019 4:11 pm

hungrywave wrote:
Wed Dec 04, 2019 1:39 pm
furwut wrote:
Wed Dec 04, 2019 1:34 pm
hungrywave wrote:
Wed Dec 04, 2019 1:24 pm
Should I just stick with Chase checking and minimize the amount of cash I have in my account?
Simplicity doesn’t get enough attention in this forum but, for cash needs, that and ease of use trumps absolute return in my book.

Keep your cash holdings to a minimum and the difference is truly trivial.

Happy Ally Bank Checking & Savings Account holder. CapitalOne is also good.
I agree, furwut, that simplicity is underrated.

Do you feel that the simplicity/ease-of-use of Ally matches that of mainstream banks?
Can’t say that I’ve ever been with a mainstream bank*. Mostly small banks and credit unions and now an internet bank. There are discussions here on local vs internet. Used to be I’d need the services on a local bank 2 to 3 times a year. Credit Unions are often a good choice.

*Not true. Years ago I remember using a mainstream bank for Quicken. Then, one year, they added requirements in order to continue the data feed. I choose to place some stock certificates I had in paper into their brokerage. This required a meeting with “the broker”. I meet this guy in a suburban strip mall branch. He’s wearing a cheap $100 suit 3 sizes to big in the neck and 3 inches too short in the arms. Looks all of 17 years of age. He tells me he can make me a lot of money. I know I can’t, I bet he can’t, and I know the main office is just interested in churning my account for fees. I think the big banks just look at retail customers as chum for their sharks.

hungrywave
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Re: The Best High Yield Savings Account

Post by hungrywave » Wed Dec 04, 2019 6:57 pm

furwut wrote:
Wed Dec 04, 2019 3:59 pm
hungrywave wrote:
Wed Dec 04, 2019 3:51 pm
Ally has a limit of 6 transactions per cycle. Between direct deposits and credit card payments, my wife and I would be way over that limit. Am I interpreting this correctly? How do you Ally users deal with this limit?
i believe that limit is per account and withdrawals, not deposits are what count. Some have set up multiple saving accounts. I do all my auto-pay activity from checking.
You are right. I called and Ally confirmed that credit card payments count as transactions. My wife and I sometimes have more than 5 credit card balances in a month and have a monthly rent payment. Thus, Ally won't work for us. We could transfer monthly from savings to checking but that is too much work.

I'm going to try SoFi Money since that has no monthly transaction limit.
The world is largely random so don't sweat the small stuff.

H-Town
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Re: The Best High Yield Savings Account

Post by H-Town » Wed Dec 04, 2019 7:07 pm

hungrywave wrote:
Wed Dec 04, 2019 6:57 pm
We could transfer monthly from savings to checking but that is too much work.
How? I tried to wrap my head around it...

You should not use your saving accounts to pay bills and transact with other accounts. To better protect your accounts, you should use only one checking account to transact with third parties (CC payments, paying bills, writing checks, etc.).

hungrywave
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Re: The Best High Yield Savings Account

Post by hungrywave » Wed Dec 04, 2019 7:20 pm

H-Town wrote:
Wed Dec 04, 2019 7:07 pm
hungrywave wrote:
Wed Dec 04, 2019 6:57 pm
We could transfer monthly from savings to checking but that is too much work.
How? I tried to wrap my head around it...
Estimate your total bill payments for a month and transfer the total out from savings to checking once a month.
The world is largely random so don't sweat the small stuff.

taxane
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Re: The Best High Yield Savings Account

Post by taxane » Wed Dec 04, 2019 7:21 pm

I open a new HYS about ~3 months to gain the opening sign up bonus. Usually ~$150-200 for storing cash for ~90 days. Rinse and repeat, increases your effective return substantially.

02nz
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Re: The Best High Yield Savings Account

Post by 02nz » Wed Dec 04, 2019 7:48 pm

hungrywave wrote:
Wed Dec 04, 2019 6:57 pm
furwut wrote:
Wed Dec 04, 2019 3:59 pm
hungrywave wrote:
Wed Dec 04, 2019 3:51 pm
Ally has a limit of 6 transactions per cycle. Between direct deposits and credit card payments, my wife and I would be way over that limit. Am I interpreting this correctly? How do you Ally users deal with this limit?
i believe that limit is per account and withdrawals, not deposits are what count. Some have set up multiple saving accounts. I do all my auto-pay activity from checking.
You are right. I called and Ally confirmed that credit card payments count as transactions. My wife and I sometimes have more than 5 credit card balances in a month and have a monthly rent payment. Thus, Ally won't work for us. We could transfer monthly from savings to checking but that is too much work.

I'm going to try SoFi Money since that has no monthly transaction limit.
Every bank in America has the same 6 transactions/mo limit for savings accounts, because that's the law: https://www.investopedia.com/this-gover ... nt-4589978

I believe SoFi (and some others) get around that by categorizing as a checking account instead.

jumbopapa
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Re: The Best High Yield Savings Account

Post by jumbopapa » Wed Dec 04, 2019 8:42 pm

02nz wrote:
Wed Dec 04, 2019 7:48 pm
hungrywave wrote:
Wed Dec 04, 2019 6:57 pm
furwut wrote:
Wed Dec 04, 2019 3:59 pm
hungrywave wrote:
Wed Dec 04, 2019 3:51 pm
Ally has a limit of 6 transactions per cycle. Between direct deposits and credit card payments, my wife and I would be way over that limit. Am I interpreting this correctly? How do you Ally users deal with this limit?
i believe that limit is per account and withdrawals, not deposits are what count. Some have set up multiple saving accounts. I do all my auto-pay activity from checking.
You are right. I called and Ally confirmed that credit card payments count as transactions. My wife and I sometimes have more than 5 credit card balances in a month and have a monthly rent payment. Thus, Ally won't work for us. We could transfer monthly from savings to checking but that is too much work.

I'm going to try SoFi Money since that has no monthly transaction limit.
Every bank in America has the same 6 transactions/mo limit for savings accounts, because that's the law: https://www.investopedia.com/this-gover ... nt-4589978

I believe SoFi (and some others) get around that by categorizing as a checking account instead.

Such a stupid law. I wonder if any any effect at all on people accessing savings. Assuming that's why it was instated.

furwut
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Re: The Best High Yield Savings Account

Post by furwut » Wed Dec 04, 2019 10:23 pm

hungrywave wrote:
Wed Dec 04, 2019 6:57 pm

You are right. I called and Ally confirmed that credit card payments count as transactions. My wife and I sometimes have more than 5 credit card balances in a month and have a monthly rent payment. Thus, Ally won't work for us. We could transfer monthly from savings to checking but that is too much work.

I'm going to try SoFi Money since that has no monthly transaction limit.
Ally will let you set up recurring transfers.

yadbugee
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Re: The Best High Yield Savings Account

Post by yadbugee » Thu Dec 05, 2019 10:01 am

Discover bank

BoggledUp
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Re: The Best High Yield Savings Account

Post by BoggledUp » Thu Dec 05, 2019 10:15 am

The 6 withdrawal limit on savings accounts allows banks to hold less money in reserve to meet those withdrawals. Without limits like this, there would be no savings accounts.

anon_investor
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Re: The Best High Yield Savings Account

Post by anon_investor » Thu Dec 05, 2019 11:52 am

furwut wrote:
Wed Dec 04, 2019 3:59 pm
hungrywave wrote:
Wed Dec 04, 2019 3:51 pm
Ally has a limit of 6 transactions per cycle. Between direct deposits and credit card payments, my wife and I would be way over that limit. Am I interpreting this correctly? How do you Ally users deal with this limit?
i believe that limit is per account and withdrawals, not deposits are what count. Some have set up multiple saving accounts. I do all my auto-pay activity from checking.
I opened multiple Ally Savings accounts, so I have plenty of transactions to cover all my payments. This works out well for me, because I use different savings accounts for different bill payments (e.g. one for mortgage and utility bills, one for certain credit cards, another for different credit cards), so I never exceed the 6 withdrawal a month limit.

Clarice
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Location: Orlando FL

Re: The Best High Yield Savings Account

Post by Clarice » Thu Dec 05, 2019 5:36 pm

esteen wrote:
Thu May 30, 2019 12:26 pm
In the Investing forum someone recently posted the news that Wealthfront is offering 2.51% APY savings account, FDIC insured up to $1M, as the race for high yield savings offerings continues. I posted a question there but upon reflection it really belongs in this forum:

I'm in the process of moving a good chunk of my emergency fund from a (virtually) non interest bearing account to a high-yield savings account. Wealthfront is technically the highest, but CitiBank (2.36%), Ally (2.20%), etc. are almost as high and aren't "middlemen" with a shaky financial structure like Wealthfront.

My question is: is there a "gold standard" high yield savings account that BH forum-goers typically recommend?

Thanks all!
-ES
Just use Max My Interest

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