I’m just finding out about these and had a couple questions for anyone with insight to these. They look like a good way to save money. My question is what are some reasons why you have them? Is this a supplemental retirement plan for some? Or more of a just in case murphy strikes? Also what should I be looking for? What makes one bank better over the other? Any info is appreciated
High interest savings accounts
- Thread starter Butcher
- Start date
I have two, one for regular savings and one where we keep our emergency savings. I want easy access to it and don’t want that money in the market and susceptible to a sudden downturn if we needed it.
If we were doing long term savings (at least 3 years) it’d be in a brokerage account
If we were doing long term savings (at least 3 years) it’d be in a brokerage account
Nick87
Well-known member
What are the rates?
fishing4sanity
Well-known member
The emergency savings are in one, wanted something quickly accessible, guaranteed safe. Look for FDIC insured which is really kind of a given and the best rate at the time.
EastCoast94
Member
I have a savings account with Morgan Stanley that’s giving 4.2% interest.
bayoublaster7527
Well-known member
- Joined
- Aug 2, 2017
- Messages
- 475
Quite a few that are hovering around 4%. Have ours in a high yield savings with AMEX.
I have two with Betterment. One for emergency funds and another for either a big ticket purchase, pissing away on a monumental vacation, and/or eventually dumping back into the market to piss away at a much later date.
Currently 4.2%, and FDIC insured (not that I’ve got remotely that much loot in them).
I don’t keep much, if any, long term savings in my bank with those kinds of rates being available.
Currently 4.2%, and FDIC insured (not that I’ve got remotely that much loot in them).
I don’t keep much, if any, long term savings in my bank with those kinds of rates being available.
elkantlers
Well-known member
My credit union has 1 and 2 year CDs at 4.5% right now.
There’s a reason they’re paying that much for your money.
Maybe a dumb question but how does a brokerage account work? I was hoping to keep money in longer than 3 years.
It’s just an account with a brokerage firm (fidelity, vanguard, etc) that lets you invest in the stock market. This is purely dependent on your risk tolerance and why I don’t put money in that I could need immediately.
I’m not sure from your original post what your goal is. If you’re looking for supplemental retirement there are some tax advantaged options (Roth/Traditional IRA or a couple others depending on your employment situation) that I’d look into before a regular brokerage account.
I use ours to house a few different savings accounts. One for an EFund, a car replacement fund, and a bucket to throw extra I want to invest at some point.
Currently with Capital One but some of the rates listed have me thinking.
Also... if anyone has a Capital One Money Market account I would check on it... they created a new fund type (360 Performance) that has been tracking rates back upward. My accounts had not been so it took a few button clicks to get the better interest rate.
Currently with Capital One but some of the rates listed have me thinking.
Also... if anyone has a Capital One Money Market account I would check on it... they created a new fund type (360 Performance) that has been tracking rates back upward. My accounts had not been so it took a few button clicks to get the better interest rate.
Nick87
Well-known member
More info..
Had the emergency savings and house down payment savings at Lending Club in a high yield savings account at 4.25% for a while. Then I learned a little more about brokerage accounts and cash management accounts through Fidelity and moved everything over there. Currently sits in a Fidelity SPRXX Money Market at 4.35%.
All these rates are subject to change with zero notice. If you lock into a CD or an annuity, you can get guaranteed rates for a longer period of time.
You'll get different recommendations on what to do depending on if it's short term savings (emergency fund), mid-term (house/car down-payment), or long term (retirement).
Generally high-yield savings is for short term money, secure money gaining a small amount of interest that you can't afford to lose value.
All these rates are subject to change with zero notice. If you lock into a CD or an annuity, you can get guaranteed rates for a longer period of time.
You need to tell us what the money is for before we can give you much advice.
You'll get different recommendations on what to do depending on if it's short term savings (emergency fund), mid-term (house/car down-payment), or long term (retirement).
Generally high-yield savings is for short term money, secure money gaining a small amount of interest that you can't afford to lose value.
Walkathon
Well-known member
Not speaking for brymoore, but it may be because they can take your money, pay you 4% on a temporary basis (rates can drop whenever) and then take your money and loan it to a home buyer at 7.1% and lock them in for years.
Banks/credit unions in need of money during the liquidity crisis are offering higher rates.
Yes, you are making a better return but your money is a greater financial risk. Yes, FDIC/NCUA exists.
It’s a mess around and find out paradox.
Our home town credit union offers start up savings accounts for kids with great rates. I believe accounts $5,000+ balance has a 5% return We've got accounts for both our boys and have loaded them both up to maximize the return. The boys get the interest on top of all their other money, and we can pluck out our cash whenever we would need it.
