High Yield Savings Account

[_19disnA]

Many banks seem to use "high yield" as more of a marketing term and wouldn't choose anything just based on what it is called. I would check around to see what interest rates/terms are being offered and pick the one that matches your needs (i.e. how much are you looking to invest and for how long?). That matters more than what they happen to call a particular product. You can also buy various Treasury bills/bonds/notes online without having to deal with any customer service people. Interest is automatically paid every 6 months. Funds automatically move to your bank account when they mature. Terms go from 4 wks to 30 years, so it gives you a lot of choices.

 

[kathy884]

I have money market accounts with the investment companies, Vanguard and Fidelity, that I use for this purpose. Takes about two business days to transfer funds into your bank's checking account. They both have good telephone support customer service if you ever need that and that's a great way to get started. Fidelity has also opened up a lot of branch offices nationwide if you like to do things in person. There is one of these about 20 minutes from my house.

Though not a bank you can get a check writing feature for the money market accounts. This is what I did for Trust Accounts for my aunt's estate with Fidelity (didn't open up a checking account), just have the money market and then investments. She passed away in July of this year and I am her executor and trustee. Fidelity works with Chase on that feature. The downside is that if you deposit a check at Fidelity, they for fraud prevention reasons don't let you use the monies for 10 business days.

For my own accounts, not the trust accounts, I don't bother with the check writing feature and just do ACH transfers online between Fidelity and Vanguard and my personal checking account. I've been with both Fidelity and Vanguard for over 30 years, large reputable investment companies, mostly utilized for self directed investors.

 

[2vets]

I've used Wealthfront for the last few years. Right now they're at 3.75%.

Same. And when I’ve pulled money out of sinking funds for their intended purchases, the transfer to my big bank checking acct is instantaneous.

I also keep sinking/emergency $ in Fidelity in cash-equivilent treasury MMFs.

 

[WDW_fan_in_TX]

Anyone use Capital One? There's a branch about 10 minutes from my house, and I'd feel much more comfortable walking in and setting up my account. I'm wanting to move what's left of my EF over there before we use it. They're offering 3.4 right now.

What about a credit union? Do they usually offer high rates? Or stick with a bank?

 

[VGCgroupie]

Anyone use Capital One? There's a branch about 10 minutes from my house, and I'd feel much more comfortable walking in and setting up my account. I'm wanting to move what's left of my EF over there before we use it. They're offering 3.4 right now.

What about a credit union? Do they usually offer high rates? Or stick with a bank?

Yes I have them now and I had them many years ago.

 

[barkley]

Anyone use Capital One? There's a branch about 10 minutes from my house, and I'd feel much more comfortable walking in and setting up my account. I'm wanting to move what's left of my EF over there before we use it. They're offering 3.4 right now.

What about a credit union? Do they usually offer high rates? Or stick with a bank?

depends on the credit union. if you are looking at parking just the $1000 EF amount (or less) that Ramsey suggests then you might shop around online and see what kind of promotions your local credit unions offer new members. mine lets you do a 'share' (same as savings) account and get 5.1% on your first $500 so a couple could open one each (with both names on each account) and get that 5.1% rate for the full $1000.

 

[ruadisneyfan2]

Another vote here for Ally. I've been with them around 8-10 years. I love that you can open multiple savings accounts and give them nicknames.
I have around 10 of them for short term goals such as Christmas, Vacation, Furniture and any bill that is anything but monthly such as Car Insurance, Escrow, Sewer. I've never been so financially organized in my life.

I used to use Capital One 360 until someone on the Dis mentioned Ally. Their interest rates were higher and they don't put long hold times on outside deposits into savings accounts. I'm not sure if CO still does that but I found it annoying. Not that I need savings to become available right away but during that hold time it's not earning interest for me, it's earning for them.

 

[tvguy]

You can also look into Brokered Certificates of Deposit. They are offered by Brokers, but unlike other brokerage accounts, ARE FDIC insured.

 

[SweetPeasMom2]

I'm using Ally. I like the bucket option. I can split my savings into different buckets based on what I'm saving for.

 

[ruadisneyfan2]

I'm using Ally. I like the bucket option. I can split my savings into different buckets based on what I'm saving for.

Back when I first signed up with them, you could only make 6 electronic withdrawals from a savings account per month as per federal law or you would get sacked with fees. When we only had 1-2 savings accounts, there were times when we were coming close to hitting 6. Sometimes just by entering the wrong amount and we'd have to go back and do more. Our expenses were a lot higher back then and we saved a lot less and tapped into savings more. So it was easier to create more accounts and separate it all out so that I wouldn't ever come close to hitting 6. Buckets within a savings account are still part of one account as far as hitting the max per month. By the time they offered buckets, I already had my 10 accounts set up.
Then covid hit they and they put a hold on fining people and eventually adjusted the max to 10 per month. Our kids are grown, mortgage is paid off, life is financially easier so we never come close to hitting the max.

 

[eticketplease]

Back when I first signed up with them, you could only make 6 electronic withdrawals from a savings account per month as per federal law or you would get sacked with fees. When we only had 1-2 savings accounts, there were times when we were coming close to hitting 6. Sometimes just by entering the wrong amount and we'd have to go back and do more. Our expenses were a lot higher back then and we saved a lot less and tapped into savings more. So it was easier to create more accounts and separate it all out so that I wouldn't ever come close to hitting 6. Buckets within a savings account are still part of one account as far as hitting the max per month. By the time they offered buckets, I already had my 10 accounts set up.
Then covid hit they and they put a hold on fining people and eventually adjusted the max to 10 per month. Our kids are grown, mortgage is paid off, life is financially easier so we never come close to hitting the max.

Unfortunately the Money Market (Same rates but gives a debit card and checks) conforms to those same limits