Anyone have a high interest savings account?

[georgina]

Hmm…. My Capital One is at 0.30%.

I guess you don't have a 360 performance savings account with them? I see 2.25% listed now. (no fees, no minimum)

https://www.capitalone.com/bank/savings-accounts/online-performance-savings-account/

 

[disney-inspired]

Hmm…. My Capital One is at 0.30%.

The accounts I have that are at 2.25% are 360 Performance Savings. I do have some general 360 savings and those are .30%

 

[smwisc]

Hmm…. My Capital One is at 0.30%.

Open new 360 Performance Savings account and then transfer your full balance -it takes less than 5 minutes online!

I just did that a couple weeks ago after coming across this same info on a Facebook group. Capitol One changes the types of accounts they offer, and doesn't tell account holders that it has happened, but they're happy to let people sit there with their old accounts earning next to nothing.

I felt a little sheepish at having not noticed, but I (and you) are not alone - there were a bunch of people on that facebook group sitting on old 0.30% Capitol One savings or money market accounts, many of whom came over from ING.

 

[Anthony1971]

CIT is 2.7. They have decent customer service. Been with them for years the only issue I find is they change savings account names and keep the old name at a lower rate. It is however very easy to open a new account through your login transfer most of the finds to the new account send a secure email to close the older account and transfer the remaining to the new account maybe 5 minutes.....

 

[princesscinderella]

I just got this in my inbox today for those with e*trade accounts.

 

[mrodgers]

Just like my neighbor across the street. She and her husband bought their house in 1979 for $75,000. Husband kept taking equity out of the house. He died 6 years ago. 43 years in the house, she still owes $60,000. I can't imagine being in that position. She lost her husband, lost his income, and is 71 now and stuck with a house payment.

I figure I'll be 80 when I can buy a house again.

I could afford $100,000 and pay it with a mortgage. Now I have to have that much as a down payment to get the same house from just a couple years ago to affordable, so it will be saving a mortgage, then getting a mortgage. I'll be 110 when I pay it off. That is if I can still climb equipment and do my job at 105 years old.

 

[mrodgers]

It even worse when housing prices crash and you end up underwater because of those types of decisions. I’m afraid a lot of people have done just that though.I f interest rates we’re higher neither scenario would happen.

I never understood this with 2008.

Why is it that one must walk away from something when their say $1800 payment on their $250,000 house was fine, but now the house is worth $150,000 so they can't pay it any more and walk away? But yet they'll pay $650/month for a $70,000 BMW, pay it off, then sell it for $13,000 and get a new $70,000 BMW.

 

[Anthony1971]

I never understood this with 2008.

Why is it that one must walk away from something when their say $1800 payment on their $250,000 house was fine, but now the house is worth $150,000 so they can't pay it any more and walk away? But yet they'll pay $650/month for a $70,000 BMW, pay it off, then sell it for $13,000 and get a new $70,000 BMW.

During the periods prior to the housing crash some banks would approve mortgages to anyone (true story) if you did not have enough income buy a rake stand by your car take a picture and say you have a side landscape income to make up the difference.... and many more. Some Banks did not care because these mortgages were packaged and sold as high return investments also in high demand including holdings by a lot of 401K's but they could have insurance on these sure fire investments and hence the start of the crash when an insurance company could not cover a very large bet gone wrong...
In this case it seems to be far different and yes a payment is the same 300,000 at 3% 250,000 at 6% (example ). Only becomes a problem if someone bough a house for a short term to try to make money has to take a lose but maybe better to just walk away, lose of job with little savings, or somehow the person got a mortgage they could not afford which is a lot harder these days.
in order for the market to plummet like the 2000's there has to be a lot of lose creating a lot of inventory.... will house take an adjustment yes..... will you see inventory like the 2000's likely not but maybe close in few very overbought areas. Let's face out buying a house for 450K and the value is now 350K is a slap in the face and gives one a bad feeling but that is only if the person looks.... if you are not selling it does not matter as what goes down will go back up and vice versa. A move from house to house is irrelevant as well... If a person can afford a 600K house buys a 450K house market drops 25% you sell for loss on paper but buy a more expensive house for the same drop making your mortgage less for that house then it would have before the rate increase when the price was higher with lower interest rates. Housing price drops have always been a great time to upgrade.

 

[tvguy]

I figure I'll be 80 when I can buy a house again.

I could afford $100,000 and pay it with a mortgage. Now I have to have that much as a down payment to get the same house from just a couple years ago to affordable, so it will be saving a mortgage, then getting a mortgage. I'll be 110 when I pay it off. That is if I can still climb equipment and do my job at 105 years old.

I can't imagine having a mortgage or a rent payment in retirement. House buying to me is for your youth, when you have years of pay raises to help ease the mortgage payment. We bought our house when we were 25, and are 65 now. My parents lived in their first house 10 years and my mom had lived in their second house 53 years when she passed. I think they only rented for about their first 6 months of marriage. My wife and I rented for 11 months.

 

[AnnaS]

i think i'm the only person in the world who fears using anything but a brick and mortar institution w/in driving proximity to my home.

no. I am right there with you

 

[DLgal]

I can't imagine having a mortgage or a rent payment in retirement. House buying to me is for your youth, when you have years of pay raises to help ease the mortgage payment. We bought our house when we were 25, and are 65 now. My parents lived in their first house 10 years and my mom had lived in their second house 53 years when she passed. I think they only rented for about their first 6 months of marriage. My wife and I rented for 11 months.

My parents bought a brand new house in a 55+ community at retirement. Their mortgage is $800/month. That's completely doable with their approximate $6000 monthly fixed income. Their house has already doubled in value. They don't intend to ever pay it off. We will sell it when they pass away and make a nice profit. They haven't had to do any expensive maintenance or repairs and they have been there 8 years now. Everything was new when they moved in. They spend almost nothing on maintenance.

 

[barkley]

if you are not selling it does not matter as what goes down will go back up and vice versa.

doesn't always go UP back to the point someone has paid for it though. my former house was sold in '06 at the top of the feeding frenzy. over the past 16 years it only just this year would have sold for what we sold it for-at one point it sold for 15% of what we sold it for (42% of what we paid for it new in '99). we've seen homes in our current neighborhood during this seller's market selling for 50K or 100K above the over bloated asking prices let alone the apprised value. now it's cooling. maybe if someone can wait another 16 or 18 years for another feeding frenzy of buyers they might break even but if someone does have to sell i suspect they will be looking at a net loss.

During the periods prior to the housing crash some banks would approve mortgages to anyone (true story)

so true. when we sold our home in '06 i saw what jobs the couple had that bought it. i told my dh 'they will lose this place in less than a year-there is no way they can afford it'. sure enough-within 90 days i started getting calls from a couple of the local utility companies that had failed to remove my cell phone number as the back up number on their records-3 months into ownership and they were already in arrears on their utilities, some of which would be transferred (at a fee) to the city and a lien placed on the property. it wasn't long before they lost the place. i place equal blame on the lenders and the buyers-there were plenty of buyers who knew they couldn't make those payments when the interest only period ended but they were gambling that they could build more equity, do a quick refi and either get another interest only or a lower interest rate and eliminate pmi to skim by on.

 

[tvguy]

My parents bought a brand new house in a 55+ community at retirement. Their mortgage is $800/month. That's completely doable with their approximate $6000 monthly fixed income. Their house has already doubled in value. They don't intend to ever pay it off. We will sell it when they pass away and make a nice profit. They haven't had to do any expensive maintenance or repairs and they have been there 8 years now. Everything was new when they moved in. They spend almost nothing on maintenance.

Those communities are common here but many residents are downsizing so they pay cash for their retirement home, and travel with the money left from the sale of their previous home.

 

[DLgal]

Those communities are common here but many residents are downsizing so they pay cash for their retirement home, and travel with the money left from the sale of their previous home.

They moved from an apartment. They are basically done traveling too. Mom was just diagnosed with late stage Parkinsons.

 

[tvguy]

They moved from an apartment. They are basically done traveling too. Mom was just diagnosed with late stage Parkinsons.

I'm sorry to hear that.

 

[DLgal]

I'm sorry to hear that.

Thanks. She has gone downhill very quickly since this time last year.

 

[Starport Seven-Five]

Ally bumped their rate to 2.35% today.

I never understood this with 2008.

Why is it that one must walk away from something when their say $1800 payment on their $250,000 house was fine, but now the house is worth $150,000 so they can't pay it any more and walk away? But yet they'll pay $650/month for a $70,000 BMW, pay it off, then sell it for $13,000 and get a new $70,000 BMW.

A lot of them were strategic bankruptcies. Why continue to pay on something when you are 100k+ underwater and have an exit?

 

[barkley]

A lot of them were strategic bankruptcies. Why continue to pay on something when you are 100k+ underwater and have an exit?

a family member was told by a credit counselor back then that given 'the times' a b/r back then that was basically due entirely to a home would not be near the detriment to credit worthiness down the line that traditional b/r's were. held true-family member was able to get out from under the house, did rentals for a few years and then bought at a much lower cost.

 

[DCLMP]

I never understood this with 2008.

Why is it that one must walk away from something when their say $1800 payment on their $250,000 house was fine, but now the house is worth $150,000 so they can't pay it any more and walk away? But yet they'll pay $650/month for a $70,000 BMW, pay it off, then sell it for $13,000 and get a new $70,000 BMW.

I guess they didn't think it would come back. I don't know where you live, but in some states and cities including where I live it looked like the apocalypse had happened. It was empty house after empty with a foreclosure signs and yards overgrown with weeds. I think it was psychological.

The incomes in my area never matched up with what they we're selling houses for. It was befuddling. It did bounce back and then some. It stills seems very fake to me. People buy payments they don't buy houses or cars. They never look at the debt they look at

the payment. My parents were fortunate they never had to take out a mortgage, but they told me never to buy a house that cost more than three times your yearly income or take on a mortgage that's more than 20% of your monthly income. It makes sense.

 

[mrodgers]

I can't imagine having a mortgage or a rent payment in retirement. House buying to me is for your youth, when you have years of pay raises to help ease the mortgage payment. We bought our house when we were 25, and are 65 now. My parents lived in their first house 10 years and my mom had lived in their second house 53 years when she passed. I think they only rented for about their first 6 months of marriage. My wife and I rented for 11 months.

Get a divorce as a father before your kids are out of school and you have no choice but to start over like you're 25 when you're 50. Many of us have nothing left but the clothes on our back at a time we should be starting to look forward to retiring.