Chasing high interest savings accounts around

[Ives]

I'm now in my second high interest savings account this year.  I think I started in one at 2.45%, then that dropped significantly so I got another one at maybe 2.3%.  Now THAT one is at 1.85% I see there are more for around 2% but if I get one of those, will that just be dropping soon anyway??

I did open another account a few weeks ago and when it finally was opened, I discovered you can only transfer $3000 at a time!  I have 85,000 and don't want to even think about how many transfers that is.  And that rate probably has dropped by now anyway.  I can't even remember what  that bank was. 

So, what do you all do??

[DadJokes]

I only keep about $10K in a savings account, sometimes getting up to $15k. The difference between a 1.8% rate and a 2.5% rate on that is only $75-$100 in a year. It's not worth the time to think about.

Why do you have so much just sitting in a bank account?

[Ives]

I know, it's better off invested, but we're saving up for a house and hope to buy this year. 

[BrightFIRE]

if I get one of those, will that just be dropping soon anyway??

Yes. The Fed lowered the interest rate target last week, so banks have been cutting rates left and right. You could consider a short term CD (3 month at 2% for example), but it's probably not worth the hassle.

https://www.depositaccounts.com/cd/3-month-cd-rates.html There's a toggle at the top to look at other terms: 6 month, 1 year, etc.

[35andFI]

I have 3 myself!

Started with Marcus then went to Wealthfront, now with Vio.

I only have $2k in there so the difference in interest made is very small but it's a few button clicks.
For now I'm playing the game.

[brandonw]

I had Sallie Mae MMA, then went to Wealthfront, and now SoFi Money.  The rates have dropped on all of them to parallel the Feds.  What I like about SoFi's account is that it comes with checks and a debit card.  Right now, wealthfront says they don't have checks or the debit card feature.  I like to be able to access the savings quickly if I need to so where wealthfront would have taken a few business days to transfer funds, SoFi is only a check or debit card-swipe away.  Oh, and no ATM fees as well, thumbs up.




Shameless referral link- https://www.sofi.com/share/money/2728227/

[mtnrider]

You might make more return chasing bank savings account signup bonuses.  Or if you're comfortable with some additional risk, keep it in an ultra short bond fund like vusfx or vfsux.

[soccerluvof4]

Not many options but if your saving for a house since the difference is so little I would just put it in VMMXX and be done with it.

[YttriumNitrate]

I tried chasing the best interest rate for a while, and ended up opening four accounts within two years. Eventually, I just settled on a fast-follower online bank that may not have the absolute best rate, but is consistently in the top tier and adjusts to changes quickly.

[Hypersion]

I use Vanguard's money market funds.

[cool7hand]

Vanguard's Money Market Fund: VMMXX. Just make sure your institution does not charge a transaction fee!

[yungleen]

I don't believe vmmxx is fdic insured. I was using ING for a long time and have fond memories of it but they were acquired by capital one. I was with capital one for years but a few things made me want to start looking for a new account. I have been doing a lot of research into which bank to switch to.

So far I am trying Marcus, Citizens Access, and CFG Bank. American Express seemed good too and also Alliant but I don't need so many.

FYI a few banks have a low limit on external transfers. You can get around this by initiating the transfer from an external account.

There were MANY banks with good rates but a lot of really bad reviews. Vio, Brio, Varo, Customers, etc. Wondering if anyone here has tried those and had a good experience.

[grobinski]

I have similarly chased rewards checking accounts to 'stache the cash for years. Have been getting 5.09% on $10k for a few years and up to $20k a couple before that at Consumers Credit Union (www.myconsumers.org). Qualifying for that rate does require 12 debits and $1000/mo on credit card so it does require some legwork.I've had no problem without b&m and phone service when needed has been fine. The app and webpage are not flashy but have been effective.

I recently noticed that TAB Bank (Utah) has a Kasasa-cash-checking account paying 4% on up to $50k which has fewer requirements to qualify.

I've also got a little 'stache in Worthy Bonds which pays 5% and is liquid. It has been there 18 months and has grown as advertised. There is a tread on it here with requisite research and cautions re:risk.

Use this code to get an additional $10 once you have $200 in for 6 months. (full disclosure, I also get $10 if you use the code)

https://worthybonds.com/?r=HABgN

[Car Jack]

I whore my emergency money around to anyone who pays me a bounty to open the account and then gives me a good APR while it's in there with no hoops.  No, I won't make 10 debit transactions....I won't even make one.  I won't direct deposit.  I probably have 10 of these accounts scattered around.  Very recently, my credit union's LTD account ($25k min, 1 withdrawal a month) upped their rate above Redneck, who's been top of the interest heap for a while.  So I moved everything over to my credit union (DCU) which is my base account anyways.  Oh, they also pay interest on the first $2500 in checking accounts now, which is cool.