Capitalone 360 V. 360 Money Market Account

[DrMoney]

Hello! I have my Efund of 25,000 in a capital one 360 savings account earning .75 APY. I just learned that I could move the money to a 360 money market account and earn 1.60 APY. Is there any reason why I wouldn't want to do this? Thanks for any insight!

[turketron]

I have both the savings and Money Market, the Money Market is definitely the better choice unless:

* you have less than $10k balance
* you move money in/out of the account too many times per month (6 total transactions/month, IIRC)

I have my roughly $14k in my Money Market right now, and the 360 Savings still open, with a zero balance. If anything came up that requires me to tap into my emergency fund that brought the balance below $10k, I just transfer the balance to the Savings until the balance gets back up past $10k.

[RWD]

Ally's savings account is currently at 1.5% with no minimum balance.

[merula]

The limit on transactions per month is the same for savings and money market accounts, as far as I know, so I think the only reason would be if you thought you might dip under $10k.

[turketron]

The limit on transactions per month is the same for savings and money market accounts, as far as I know, so I think the only reason would be if you thought you might dip under $10k.

Huh, good to know, I guess I never looked at it that closely for my regular savings. I typically only make one transfer every couple months or so anyways.

[CalBal]

:O

I also use Capital One 360 also for my EFund, and am just over 10k (200 automatically goes into it every month, and I rarely withdraw). I had NO IDEA about the Money Market Account. Going to check it out...

[DrMoney]

Out of curiosity, let's say a big emergency happens, and I had to spend a large chunk of my efund, bring the balance to below 10k. Would I incur any penalties, or would it just reduce the APY?

[CheapskateWife]

CIT is currently offering 1.75 APR...minimum balance of $100 and FDIC insured.

https://www.bankoncit.com/