The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Workinghard on April 30, 2014, 03:00:24 PM
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What's is the difference in money earned if I had 35k in a savings account with Ally at 0.87% APY and interest rate versus the same amount at MMA in SunTrust at 0.05 APY and interest over the course of a year? I'm trying to decide if it's worth changing since we keep a large balance in our checking account anyway of 2-3 month's bills.
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I'm not good at this stuff. I'm seeing this too simply perhaps.
35k x .0087 = 304
35k x .0005 = 17
Am I wrong?
Seems worth switching to me.
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I'm not good at this stuff. I'm seeing this too simply perhaps.
35k x .0087 = 304
35k x .0005 = 17
Am I wrong?
Seems worth switching to me.
Nope you're entirely correct, assuming the amount of money in the account remains unchanged throughout the year. 35k is a lot of cash, but if you're sure you want to hold onto that much I'd definitely switch!
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We have about 40K in the same Ally Money Market account at 0.87% that we are saving for a downpayment on a house. It throws off about 30 bucks a month in interest. Free $!
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Awesome! I'll "save" the calculations so I know how to do it in the future. The cash is for a vacation next year to Europe, a replacement car when we need it (ours are 12 and 15 yrs old), and possible roof replacement looming in the future.
Thanks for the help!
Lb, was there a reason you went with the MMA vs the savings account?
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SmartyPig.com (BBVA Compass Bank), online only bank, offers 1%. Transfers take a few days in/out, but if you're not going to need the money on a day's notice, it's good for short term funds.
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SmartyPig.com (BBVA Compass Bank), online only bank, offers 1%. Transfers take a few days in/out, but if you're not going to need the money on a day's notice, it's good for short term funds.
That's better than Ally. I'll have to check them out. Thanks!
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I'm getting 1% from MySavingsDirect (just switched recently...my other online bank was paying a whopping 0.1% - one-tenth of one percent - so I got a ten-fold increase by switching. Totally worth doing.
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I'm getting 1% from MySavingsDirect (just switched recently...my other online bank was paying a whopping 0.1% - one-tenth of one percent - so I got a ten-fold increase by switching. Totally worth doing.
Have to admit, I like their name and website better than what arebelspy posted (no offense intended)!
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I'm getting 1% from MySavingsDirect (just switched recently...my other online bank was paying a whopping 0.1% - one-tenth of one percent - so I got a ten-fold increase by switching. Totally worth doing.
Have to admit, I like their name and website better than what arebelspy posted (no offense intended)!
lol, I don't take any offense, I have no dog in the fight.
I agree that SmartyPig's name is stupid, but I don't really care about the name of the bank I use. It's not a relevant factor to me. :)