Anyone have a high interest savings account?

[MomToOne]

By chance, do you know how the Vanguard was running last year?

https://investor.vanguard.com/investment-products/mutual-funds/profile/vmfxx#performance-fees

 

[georgina]

By chance, do you know how the Vanguard was running last year?

Generally depends on prevailing interest rates similar to all the other ones, short-term government securities being the main investment. It is interesting to me that it pays a bit higher than the short-term bond fund right now, that is at 4.91% and obviously does not have a stable share price like the MM.

 

[chicagodisneyguy]

Generally depends on prevailing interest rates similar to all the other ones, short-term government securities being the main investment. It is interesting to me that it pays higher than the short-term bond fund right now, that is at 4.19%

1m bills are north of of 5.25%....and hit 22yr highs near 5.5 in April . Usually US gov't securities are normally the safest bet....but statistically greater chance currently the US defaults in the next month than a basket of bonds do.

 

[DLgal]

1m bills are north of of 5.25%....and hit 22yr highs near 5.5 in April . Usually US gov't securities are normally the safest bet....but statistically greater chance currently the US defaults in the next month than a basket of bonds do.

Aren't treasury bills the one guaranteed money source in a government shut down/default? The T bills must be paid regardless. So, they would be the safest investment.

 

[gmi3804]

I have some CDs that are paying 5.25%. Good way to save some semi-liquid funds.

 

[Starport Seven-Five]

Ally raised their online savings to 3.85% today.

 

[Anthony1971]

Ally raised their online savings to 3.85% today.

I would consider moving away from Ally. The rate is low. CIT, synchrony -was GE capital plus and chase owns majority stock but their credit card main source of income may be on the less nice side if that matters-and many others have much higher rates. Also Ally is high on the list of banks that can fail if their is a run on deposits although that should not matter much as you will gain access to your money in a very short time if that happene.

 

[chicagodisneyguy]

Aren't treasury bills the one guaranteed money source in a government shut down/default? The T bills must be paid regardless. So, they would be the safest investment.

Yeah, even if a default happens people with Tbills will get their money. The issue could be when they get the money. There is a possibility of the current 1m bill comes to maturity and the funds dispersement could be delayed. I don't think that will happen but who knows.

With rates what they have been I've personally been buying 1m, 3m, and 6m bills and then reinvesting when they matured. This month I tok my 1m cash and bought more 3m bills instead.

 

[Communicore1991]

I would consider moving away from Ally. The rate is low. CIT, synchrony -was GE capital plus and chase owns majority stock but their credit card main source of income may be on the less nice side if that matters-and many others have much higher rates. Also Ally is high on the list of banks that can fail if their is a run on deposits although that should not matter much as you will gain access to your money in a very short time if that happene.

What other banks would you recommend? I've been with Ally for several years and like their service. They used to be the leaders of high interest rate savings but it seems others are raising their rates higher than Ally now.

 

[Anthony1971]

What other banks would you recommend? I've been with Ally for several years and like their service. They used to be the leaders of high interest rate savings but it seems others are raising their rates higher than Ally now.

I can only tell you what I know.... CIT which is owned by a family bank in NC which is very large now being they bought one of the failed tech banks has good savings rates HOWEVER they like to play the come out with new account with a higher rate game every few years but very easy to open that account transfer your money and send an email to close and transfer the remaining in maybe 5 minutes. Be careful with their special CD rates as they will have a renew clause at much lower rate and send an email when it is up so you have to be on top of that as they will only seal with around the time it is up for renew all can be done by email through their system as above or phone always had good service Synchrony has better CD rates some do not like the what they do as they back MANY retailer cards that have extremely high interest rates they also have different tiers of service depending on how much money you have with them or how long we are in the top tier and get good service however I know of another who's calls were directed overseas and the service was not great but doable CD is easier to deal with . Barclays US bank is very easy to use rates are decent they will send an email when a CD is almost up log on pick from a drop down menu where you want the money renew savings etc also very good customer service. Capital one a steer clear of they screwed me once when they took over an online account it was you need to open this account to get a better interest rate on that account and this account has fees if.............. CIT has a new account with 4.8? right now..... If I had to suggest one for best overall that would be it.... But sometimes the wait to speak with someone can be long but only dealt with that with new accounts but as I said easy to use the email system even a month before a CD is up to tell them..... and open close accounts also very fast with actually mailing 1099INT at they end of the year others you need to go online to get and not sometimes not until very late Feb. I did have an Ally account at one time when they had their advertising campaign ? years back. Synchrony will send a Debit card and waive all fees on their end if it matter to have fast access to an online funds. I use none of these banks for "day to day" bill pay and banking they are savings only but all can be linked to that type of account and transfer funds in 2-3 days. Local banks are a different ball game to me it is free checking without all the BS give me a few hundred min and no interest and I am good...I can only suggest TD bank for that but I am sure there are others TD bank also has great customer service. Out of all banks the one I avoid is Bank of America they are like walking into a high pressure sales pitch and customer service will say branch to fix... branch will say customer service and nothing ever gets done.... I would sooner bury money in my yard or under by a tree in a park and draw a map.

 

[DLgal]

What other banks would you recommend? I've been with Ally for several years and like their service. They used to be the leaders of high interest rate savings but it seems others are raising their rates higher than Ally now.

Just stick with Ally. They are FDIC insured so you won't lose your money. And they have a great app and website interface that most of these other banks are lacking in. I am sticking with Ally for my HY savings. I don't mess with CDs. Too complicated and it ties up your money.

I'd recommend keeping 6 months worth of expenses liquid in Ally savings, and then investing the rest of your money in an index fund, but that's just me.

I would not be chasing a percentage point here or there for a few extra dollars a year. Play the long game with your money.

 

[barkley]

if cd's are what a person is interested in i would suggest checking out local credit unions to see what kind of offerings they may have b/c they can be fairly competitive with the on-line offerings and some have unique benefits. right now and going into the month of june can find interesting offers if you live near any colleges and universities. i've seen some very good rates offered around graduation time to tempt grads to deposit monetary gifts into 9 and 12 month cds but my FAVORITE offering by a couple of our locals is the elusive 'add on' feature wherein you lock your rate and are allowed to continue to make deposits over the life of the cd at the same locked rate (very thankful for this when we locked in a rate back in '18 and then saw rates plummet over the next few years-we were/are still able to add on at that rate we locked in at). i'm keeping an eye on these products right now and if rates start going south might open a few as 'insurance' in case they are paying better than what is available when some of my others come due.

 

[georgina]

Every time I get a CD something happens and I close it early and take the penalty (which is at least tax-deductible!). I really like Marcus, they are very quick with transactions and the website is great. I have an Ally account I opened last year when they were offering a bonus of 1% of new deposits after 3 months, am planning to close it. It depends on what someone is comfortable with, a 0.3% difference between these 2 companies interest rates is 7-8% difference in earnings.

 

[midwestdee]

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.

If both of them had their names on the paperwork, both would have to sign for home equity loans, unless he forged her name. Very sad situation but I would have kicked his butt to the curb decades ago. Good riddance to him and I hope she can work it out.

 

[RamblingMad]

If both of them had their names on the paperwork, both would have to sign for home equity loans, unless he forged her name. Very sad situation but I would have kicked his butt to the curb decades ago. Good riddance to him and I hope she can work it out.

Grocery clerk is her future. She chose her husband poorly.

T bills still look much better than savings right now.

 

[midwestdee]

Grocery clerk is her future. She chose her husband poorly.

T bills still look much better than savings right now.

I’m sure you’re right. If the guy pulled that stunt, I can’t believe he was otherwise a stellar husband, so she must have a much higher tolerance for being taken advantage of than I do.

 

[tvguy]

If both of them had their names on the paperwork, both would have to sign for home equity loans, unless he forged her name. Very sad situation but I would have kicked his butt to the curb decades ago. Good riddance to him and I hope she can work it out.

She did work it out. She sold the house to her brother in law (her husband's brother). She is renting it back and he is doing all the upkeep.
How many times have you been divorced with THAT attitude towards marriage? LOL
My wife wants NOTHING to do with our finances and fights me every time I try to involve her. She DOES understand why she needs to know and be involved, she just wants to me to handle it, and if I die before her, THEN she'll figure it out.

 

[midwestdee]

She did work it out. She sold the house to her brother in law (her husband's brother). She is renting it back and he is doing all the upkeep.
How many times have you been divorced with THAT attitude towards marriage? LOL
My wife wants NOTHING to do with our finances and fights me every time I try to involve her. She DOES understand why she needs to know and be involved, she just wants to me to handle it, and if I die before her, THEN she'll figure it out.

Married 45 years actually. Being married doesn’t mean either person has the right to blatantly take advantage of their spouse, which clearly he did. Disclosure- one year I did give a friend Idiots Guide to Divorce because she REALLY needed it and I happily went to court with her when she got rid of the bum.

 

[Starport Seven-Five]

CIT which is owned by a family bank in NC which is very large now being they bought one of the failed tech banks has good savings rates HOWEVER they like to play the come out with new account with a higher rate game every few years but very easy to open that account transfer your money and send an email to close and transfer the remaining in maybe 5 minutes. Be careful with their special CD rates as they will have a renew clause at much lower rate and send an email when it is up so you have to be on top of that as they will only seal

This is a dealbreaker for me. I cannot stand businesses that treat customers like this and I will surely end up behind because I’m not paying close attention to interest rates at competitors.

Ally has been relatively quick to follow rate increases and hasn’t made me jump through hoops to get them. That is worth something to me.

 

[tvguy]

Married 45 years actually. Being married doesn’t mean either person has the right to blatantly take advantage of their spouse, which clearly he did. Disclosure- one year I did give a friend Idiots Guide to Divorce because she REALLY needed it and I happily went to court with her when she got rid of the bum.

Oh, I don't doubt she was a completely willing participant. When he died, she just wished things had been done differently.