Author Topic: Recommendations for Online Savings Account  (Read 5907 times)

Peacefrog951

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Recommendations for Online Savings Account
« on: August 06, 2015, 05:22:35 AM »
Hello everyone!

I'm Colleen and I'm new to the forums. Reading about all the badassity happening around the world is super inspiring!

Right now my husband and I have a savings account with our local credit union. This is where our emergency fund currently resides and the APY is .15%. We're interested in potentially moving the bulk of our savings to an online savings account with a better rate.

We're looking at Ally, Capital One, and Barclays. Ally seems to be the best option, but I wanted to hear what fellow Mustachians use and recommend. \

Thanks!!

MDM

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Re: Recommendations for Online Savings Account
« Reply #1 on: August 06, 2015, 05:45:33 AM »
This is where our emergency fund currently resides and the APY is .15%. We're interested in potentially moving the bulk of our savings to an online savings account with a better rate.

We're looking at Ally, Capital One, and Barclays. Ally seems to be the best option, but I wanted to hear what fellow Mustachians use and recommend. \

Add GE Capital Bank to the mix and you have covered most of the usual suspects.

When you say "the bulk of our savings" do you mean "our emergency fund" only, or are you looking at investing more than the emergency fund into the online savings?

Stache-O-Lantern

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Re: Recommendations for Online Savings Account
« Reply #2 on: August 06, 2015, 05:53:20 AM »
I use State Farm Bank, and have no complaints.

Schaefer Light

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Re: Recommendations for Online Savings Account
« Reply #3 on: August 06, 2015, 05:58:24 AM »
I've been using Ally for about a year and I have no complaints.

Debts_of_Despair

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Re: Recommendations for Online Savings Account
« Reply #4 on: August 06, 2015, 06:16:53 AM »
Almost six years with Ally, no complaints.

Dezrah

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Re: Recommendations for Online Savings Account
« Reply #5 on: August 06, 2015, 06:49:43 AM »
We have a Capital One 360 account for checking and saving.  Itís been pretty good for us.  The biggest hassle we had was when we had to mail checks to deposit them when they exceeded the monthly limit.  It made me nervous but it was actually really easy and they posted surprisingly quickly. 

I keep seeing promotions and specials for new 360 and other online banks all the time, so I suggest being patient until one of those comes around for your favorite.  Then come back here and find someone who already has an active account and you both can get a referral bonus too.

Peacefrog951

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Re: Recommendations for Online Savings Account
« Reply #6 on: August 06, 2015, 07:24:00 AM »
Thanks MDM for the additional recommendation!

We don't have much else saved except our emergency fund (along with 403B and a 401K through my job and my husband's job). We're two months away from paying off the last of our student loans (finally!), so once those are paid we'll be considering what to do with the cash we've been pushing towards the loans.

We're thinking right now about opening a Betterment account and potentially adding more money to the savings account. So, the long answer to your question is, yes we would potentially add more to the online savings account than just the emergency fund.

Thanks everyone else for the feedback! Dezrah, I will definitely keep an eye on those sites for promotions, thanks for the tip!

Gondolin

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Re: Recommendations for Online Savings Account
« Reply #7 on: August 06, 2015, 07:25:00 AM »
I use Barclays and they've been good. My dad uses Ally and has also had a good experiences.

Lis

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Re: Recommendations for Online Savings Account
« Reply #8 on: August 06, 2015, 07:30:45 AM »
I like GE Capital, I have most of my efund there in a mix of their CDs and savings account. Customer service was helpful the one time I had to call.

What would you be using Betterment for? Efund or retirement? I'd say you're probably better off skipping Betterment and going straight for Vanguard.

Peacefrog951

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Re: Recommendations for Online Savings Account
« Reply #9 on: August 06, 2015, 09:53:06 AM »
Thanks, Lis!

We're still pretty new to the investing world. My husband and I are trying to wrap our heads around it. We've been focusing on paying down our debt/establishing our emergency fund. Since our debt is almost gone, we're trying to figure out what would be the most responsible way to invest our money.

Could you explain why you'd Go with Vanguard over Betterment? I'm gathering as much information as possible right now, so your perspective would be really helpful.

EricP

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Re: Recommendations for Online Savings Account
« Reply #10 on: August 06, 2015, 10:39:23 AM »
Could you explain why you'd Go with Vanguard over Betterment? I'm gathering as much information as possible right now, so your perspective would be really helpful.

Betterment is just going to invest your money into Vanguard but charge you (through an expense ratio, I think) for the services they provide.  While there is a debate to the value of those services, most around here would probably agree that they are not worth the increased expense ratio and it is better just to invest the money in Vanguard yourself.

rugorak

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Re: Recommendations for Online Savings Account
« Reply #11 on: August 06, 2015, 11:07:12 AM »
I'll add Sallie Mae banking to places to use for online savings.

I've been with them for a number of years now and have been pretty pleased. They don't advertise so most people forget they have banking too.

Yankuba

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Re: Recommendations for Online Savings Account
« Reply #12 on: August 06, 2015, 11:07:53 AM »

RunHappy

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Re: Recommendations for Online Savings Account
« Reply #13 on: August 06, 2015, 11:18:49 AM »
1.5 years with Ally bank and no complaints.  I only have used it to stash cash so far.

KittyCat

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Re: Recommendations for Online Savings Account
« Reply #14 on: August 06, 2015, 11:49:03 AM »
We have a Capital One 360 account for checking and saving.  Itís been pretty good for us.  The biggest hassle we had was when we had to mail checks to deposit them when they exceeded the monthly limit.  It made me nervous but it was actually really easy and they posted surprisingly quickly. 

I keep seeing promotions and specials for new 360 and other online banks all the time, so I suggest being patient until one of those comes around for your favorite.  Then come back here and find someone who already has an active account and you both can get a referral bonus too.
Exceeded the monthly limit? In any case, you can take a picture of the front and back of the check and upload them as well; the deposit posts quite quickly indeed.

To OP: I have Capital One 360 now, but I have contemplated moving to Ally multiple times. The free person-to-person transfer (which I imagine all these banks have) is very convenient. It's the joining bonus that tempted me to open an account with them.

Betterment is just going to invest your money into Vanguard but charge you (through an expense ratio, I think) for the services they provide.  While there is a debate to the value of those services, most around here would probably agree that they are not worth the increased expense ratio and it is better just to invest the money in Vanguard yourself.
In that case, what about WiseBanyan? They don't charge you through an additional expense ratio and they also have free tax-loss harvesting.

Clean Shaven

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Re: Recommendations for Online Savings Account
« Reply #15 on: August 06, 2015, 11:58:54 AM »
I use Synchrony, which was formerly named GE Capital.  They seem to be about as good as it gets for "high" interest savings (about 1%) and CD accounts for the emergency fund.

Lis

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Re: Recommendations for Online Savings Account
« Reply #16 on: August 06, 2015, 12:06:12 PM »
Betterment is just going to invest your money into Vanguard but charge you (through an expense ratio, I think) for the services they provide.  While there is a debate to the value of those services, most around here would probably agree that they are not worth the increased expense ratio and it is better just to invest the money in Vanguard yourself.
In that case, what about WiseBanyan? They don't charge you through an additional expense ratio and they also have free tax-loss harvesting.

Ditto to what Eric said. I've never heard of WiseBanyan before. I'm looking into it now (though it's prompting me to join a wait list... guessing it's not quite available for everyone yet?). I guess my question is - how is it free and what's the catch? Is it going to be similar to Mint, where everything is free to use but they have paid 'recommendations?' That seems like that could get sketchy quick...

catccc

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Re: Recommendations for Online Savings Account
« Reply #17 on: August 06, 2015, 12:06:35 PM »
I started an account with mysavingsdirect.com after seeing it recommended by another MMM forum member.  1.25%, and it doesn't appear to be a teaser rate.  Another branch of (subsidiary of?  IDK, exactly, but in so way related to) Emigrant Bank.

If you don't have a capital one 360 savings account and have never had one, they have a good bonus now, deposit $10-$50K and get a bonus after 90 days of $100 to $500.  I used to move money around a lot and the limits were kind of annoying, but if you plan on just having $ stay put, it's a decent option to start with because of the bonus.


KittyCat

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Re: Recommendations for Online Savings Account
« Reply #18 on: August 06, 2015, 12:09:46 PM »
Ditto to what Eric said. I've never heard of WiseBanyan before. I'm looking into it now (though it's prompting me to join a wait list... guessing it's not quite available for everyone yet?). I guess my question is - how is it free and what's the catch? Is it going to be similar to Mint, where everything is free to use but they have paid 'recommendations?' That seems like that could get sketchy quick...
Through additional products and services, apparently.

KittyCat

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Re: Recommendations for Online Savings Account
« Reply #19 on: August 06, 2015, 12:11:58 PM »
If you don't have a capital one 360 savings account and have never had one, they have a good bonus now, deposit $10-$50K and get a bonus after 90 days of $100 to $500.  I used to move money around a lot and the limits were kind of annoying, but if you plan on just having $ stay put, it's a decent option to start with because of the bonus.
Wait, what limits is everyone talking about on Capital One 360? I haven't seen one yet, and only know about the 6 withdrawals per month (30 days?) limit from savings which everyone has due to the law.

trailrated

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Re: Recommendations for Online Savings Account
« Reply #20 on: August 06, 2015, 12:53:26 PM »
Ally has worked well for me. The one time I had an issue they resolved it in less than 5 minutes over the phone. I am happy with them.

DaMa

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Re: Recommendations for Online Savings Account
« Reply #21 on: August 06, 2015, 07:46:36 PM »
Ally for more than 6 years.  It was GMAC back then.  Never a problem.

bittheory

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Re: Recommendations for Online Savings Account
« Reply #22 on: August 06, 2015, 08:42:39 PM »
I can also vouch for SallieMae bank, they have typically had the highest rates I've seen, but now I'm tempted to try something else based on everyone's recommendations for Capital One 360.

Dezrah

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Re: Recommendations for Online Savings Account
« Reply #23 on: August 07, 2015, 06:35:20 AM »
We have a Capital One 360 account for checking and saving.  Itís been pretty good for us.  The biggest hassle we had was when we had to mail checks to deposit them when they exceeded the monthly limit.  It made me nervous but it was actually really easy and they posted surprisingly quickly. 

I keep seeing promotions and specials for new 360 and other online banks all the time, so I suggest being patient until one of those comes around for your favorite.  Then come back here and find someone who already has an active account and you both can get a referral bonus too.
Exceeded the monthly limit? In any case, you can take a picture of the front and back of the check and upload them as well; the deposit posts quite quickly indeed.


Yes, normally I do use the photo check deposit method and I agree it does work great.  There is a check limit of something like $5k per check deposited and no more than $10k deposited in a month.  I was pulling funds from a short-term investment account and just had them cut me a check instead of doing the paperwork for direct transfers.  It was an unusual set of circumstances that I donít expect to repeat terribly often.  If you handle a lot of checks, a brick-and-mortar bank is probably a better fit all around.

KittyCat

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Re: Recommendations for Online Savings Account
« Reply #24 on: August 07, 2015, 10:24:53 AM »
Yes, normally I do use the photo check deposit method and I agree it does work great.  There is a check limit of something like $5k per check deposited and no more than $10k deposited in a month.  I was pulling funds from a short-term investment account and just had them cut me a check instead of doing the paperwork for direct transfers.  It was an unusual set of circumstances that I donít expect to repeat terribly often.  If you handle a lot of checks, a brick-and-mortar bank is probably a better fit all around.
Ohh, interesting; I did not know that. I'll keep that in mind.

Lis

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Re: Recommendations for Online Savings Account
« Reply #25 on: August 07, 2015, 11:27:23 AM »
Ditto to what Eric said. I've never heard of WiseBanyan before. I'm looking into it now (though it's prompting me to join a wait list... guessing it's not quite available for everyone yet?). I guess my question is - how is it free and what's the catch? Is it going to be similar to Mint, where everything is free to use but they have paid 'recommendations?' That seems like that could get sketchy quick...
Through additional products and services, apparently.

Hmm... still sketchy to me. One of the best courses I ever took in college was a consumer behavior class, and that's made me skeptical of pretty much anything (helps with being mustachian!). There are so many small details overlooked by the average consumer that'll make you spend more. For instance, putting the 'best' items at eye level for their target audience in supermarkets. I haven't seen the layout of this website as an investor, but I can only imagine the best ones for Wisebanyan will be at eye level for the investor, most of whom are on this site because they don't understand how to invest for themselves.

KittyCat

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Re: Recommendations for Online Savings Account
« Reply #26 on: August 07, 2015, 12:35:37 PM »
Hmm... still sketchy to me. One of the best courses I ever took in college was a consumer behavior class, and that's made me skeptical of pretty much anything (helps with being mustachian!). There are so many small details overlooked by the average consumer that'll make you spend more. For instance, putting the 'best' items at eye level for their target audience in supermarkets. I haven't seen the layout of this website as an investor, but I can only imagine the best ones for Wisebanyan will be at eye level for the investor, most of whom are on this site because they don't understand how to invest for themselves.
Well, they do recommend an allocation based on questions that you answer, but you can easily adjust the allocations with a slider after answering all of them. Most of their funds are Vanguard. Here is their fee schedule. I'm actually in the boat of not knowing how to invest for myself; I'm still debating on whether to keep it simple and go with WiseBanyan or a Vanguard Target Retirement fund, or the more slightly more complex option of selecting 3 or 4 funds and doing rebalancing and reallocating myself.

To OP: I'd read the fees and restrictions on the banks in which you're interested; I'm sure the ones that were mentioned here have minimal additional fees, but something might be a deal-breaker like the the max check-deposit-through-picture-upload amount that I did not know Capital One 360 had.