Anyone have a high interest savings account?

[BaybeeYoda]

My fidelity general cash spxx is 4.7%

I did lock in a 1yr cd at capital one a month or two ago at 5%, but only put in a small amount.

 

[barkley]

just got a notification from one of the credit unions we bank with-offering a 48-60 month cd at 5.25%. i've got one that ends in october at a lower rate and i've just been holding out hope that there's something decent out there when it hits maturity. methinks after running the numbers i'll take the penalty hit to break it and move on over. that rate guaranteed for 4 or 5 years doesn't sound bad.

 

[DLgal]

just got a notification from one of the credit unions we bank with-offering a 48-60 month cd at 5.25%. i've got one that ends in october at a lower rate and i've just been holding out hope that there's something decent out there when it hits maturity. methinks after running the numbers i'll take the penalty hit to break it and move on over. that rate guaranteed for 4 or 5 years doesn't sound bad.

Well, given that we are staring down the barrel of a recession, your money would better serve you by sitting in a high yield savings account FOR NOW, earning close to 4%, then sinking those funds into the stock market in about 6 months, or when it looks like we've hit bottom. The returns over the next 4 years after that will FAR exceed 5.25%, if history repeats itself (as it has every other time we've been in this position). You could be looking at 50% appreciation of your money 5 years from now.

 

[AnnaS]

just got a notification from one of the credit unions we bank with-offering a 48-60 month cd at 5.25%. i've got one that ends in october at a lower rate and i've just been holding out hope that there's something decent out there when it hits maturity. methinks after running the numbers i'll take the penalty hit to break it and move on over. that rate guaranteed for 4 or 5 years doesn't sound bad.

Might be worth it to break the CD. I did this not too long ago. The rate was so low, the hit was not much/nothing. Seems like a good rate to me and you don't have to worry about it for a few years.

 

[barkley]

Might be worth it to break the CD. I did this not too long ago. The rate was so low, the hit was not much/nothing. Seems like a good rate to me and you don't have to worry about it for a few years.

i did it as well back in december-another 5 year that was due to end in 2023 was sitting at 2% less than a promo deal that another institution was offering and when i ran the numbers of how much the penalty would be vs. a 2% increase in interest it was a win.

i know there are better investments than cd's but if i don't need the money liquid and i don't want any risks i can't find anything else out there i prefer.

 

[jimmymc]

I have Discover, rate is 3.9%. Not the best, but I've had it for a while and it really only holds an emergency fund.

 

[barkley]

I have Discover, rate is 3.9%. Not the best, but I've had it for a while and it really only holds an emergency fund.

i know people that LOVE discover but i had a VERY bad experience with them years ago and won't return (one and only time i've been on a call with the recording 'your call may be monitored for customer quality' and had the call interrupted by the monitor who told the rep to 'be quiet, the customer is correct-we've made a huge error on this account, stop arguing with her because she's right').

 

[QueenIsabella]

i know people that LOVE discover but i had a VERY bad experience with them years ago and won't return (one and only time i've been on a call with the recording 'your call may be monitored for customer quality' and had the call interrupted by the monitor who told the rep to 'be quiet, the customer is correct-we've made a huge error on this account, stop arguing with her because she's right').

That would NOT give me confidence!

 

[chicagodisneyguy]

Treasury auctioned off 21 day Tbills at 6.33% today. A nice return for a few weeks. Just shows how whacked the yield curve is at the moment and how the debt ceiling is affecting things.

 

[chuff88]

I was just going to say that I really recommend looking into credit unions in your area to see what they offer. Our local credit union has a savings account with variable interest based on deposit amount that isn't SUPER high yield but is nice as an emergency fund that earns some interest. They also are currently offering 7-month and 13-month CD specials with good rates. A lot of times smaller institutions have more incentive to offer competitive rates, so it might be worth looking into. I really love banking with a credit union and use them for pretty much everything except my auto loan (which was only because the dealership I went through could offer a better rate at the time) and my credit cards (just can't compete with the Chase Sapphire Preferred rewards).

 

[barkley]

I was just going to say that I really recommend looking into credit unions in your area to see what they offer. Our local credit union has a savings account with variable interest based on deposit amount that isn't SUPER high yield but is nice as an emergency fund that earns some interest. They also are currently offering 7-month and 13-month CD specials with good rates. A lot of times smaller institutions have more incentive to offer competitive rates, so it might be worth looking into. I really love banking with a credit union and use them for pretty much everything except my auto loan (which was only because the dealership I went through could offer a better rate at the time) and my credit cards (just can't compete with the Chase Sapphire Preferred rewards).

it's through our credit union that i just got 5.25% for a 5 year and was able to bump up a rate on another 5 year i got last december. i also like credit unions-they are the only places i've ever found add-on cd's at which i used to my advantage over the last several years when the rate we locked in 5 years ago was much higher than anything that was being offered anywhere for several years. we were able to keep making deposits at that locked in rate and grow at about 3x the then going rate.

 

[mickey'sbud]

I had great luck and you might can too!!!
I called my credit union to open a new CD. While I was talking with the representative she noticed I had 2 small CDs maturing in about 6 months with a lower rate than what was currently being offered. She said she could move the 2 small CDs into the new CD with the higher rate and it would mature in 15 months. She waived the early withdrawal penalty!!! She said this credit union allowed you to move CDs into another new CD (or an add-on CD) as long as the maturity date was farther out.
So now I'm making more interest on the $$ than I would have, plus I didn't have to pay a penalty... Win-Win!!!

So you might inquire about doing this with your institutions!!

 

[barkley]

I had great luck and you might can too!!!
I called my credit union to open a new CD. While I was talking with the representative she noticed I had 2 small CDs maturing in about 6 months with a lower rate than what was currently being offered. She said she could move the 2 small CDs into the new CD with the higher rate and it would mature in 15 months. She waived the early withdrawal penalty!!! She said this credit union allowed you to move CDs into another new CD (or an add-on CD) as long as the maturity date was farther out.
So now I'm making more interest on the $$ than I would have, plus I didn't have to pay a penalty... Win-Win!!!

So you might inquire about doing this with your institutions!!

my primary credit union has the same policy but they are only willing to go up to what THEY are offering vs. what another local is so in my case the penalty for breaking a 3.0% cd that had less than 5 months left on it to go to a much longer term 5.25% cd was much better than what my primary was offering (the top they offered for a comparable was 3.5% for the same term).

 

[Shelly F - Ohio]

Opening a 5.50% CD later this week. I worked at a bank in the early 90's and remember changing the CD rate board monthly and the rate was usually 11%!

 

[barkley]

Opening a 5.50% CD later this week. I worked at a bank in the early 90's and remember changing the CD rate board monthly and the rate was usually 11%!

i remember my mom getting the high 16's back in the 80's but then i also remember in the 90's paying about 11 or better for our first mortgage

 

[Traveling on cc points]

Just received an email from Amex

We want to let you know that as of May 31, 2023 the Annual Percentage Yield (APY) on your High Yield Savings Account has increased to 4.00%.1 This variable rate is subject to change over time based on economic and competitive factors. You should know that this rate is significantly more than the national average2, so you'll continue to get more out of your savings with your American Express Savings High Yield Savings Account. Thank you for being a valued American Express customer.