Savings Account Suggestions

[badassprof]

Where do people park their short term/emergency savings these days?  In an online account? And if so, which one?  We are embarking on some large house repairs this year and are looking for a place to park money that we can access fairly easily, but we don't need it to be attached necessarily to a debit card or physical bank.

[Another Reader]

Sallie Mae Bank is paying 1.05 percent on money market accounts.  The transfer process is simple.  Ally is at 0.95 percent on both savings and money market accounts.  Also simple.  Sadly, TIAA Direct discontinued accepting applications for its 1.25 percent account.

The other option is to find a credit union that offers a high yield checking account in your area.  Here in the Bay Area, Provident offers 2.01 percent up to $25,000, as long as you have one ACH transaction and 10 debit transactions per month.

I would not put short term money in a bond fund.  Too much risk to principal.

[MrSaturday]

I have a couple of months expenses worth in a savings account, but the bulk of my short term cash is in I bonds earning around 1.4%.

You need to plan ahead on I bonds since they're locked up for 11-12 months.

[giggles]

short term savings in short term and intermediate term bonds.  Some also in NJ munis.

Emergency money I keep in my checking and savings account.

[desrever]

Ally. One single rate for everybody, no strings attached. Other online accounts I've had were bait-and-switch: the attractive rate goes away after a few months, meanwhile they open a new account class at a higher rate to attract deposits. Ally has exceeded my expectations with a very simple product that has performed as promised.

[markstache]

For people using bond funds, are you seeking out tax free muni bonds/funds or just going with standard bonds?

[kudy]

Thanks, this thread urged me to do two things:

• Move my "house expenses savings account" from a Sallie Mae savings at 0.90% to a Sallie Mae money market at 1.05%,  increased rate of 0.15% and I get checks!
• Move my emergency fund from an ING savings account at 0.75% to an Ally money market at 0.95%, increased rate of 0.20%, and I get checks!

I guess I should consider keeping it all in the Sallie Mae account, for the 0.10% higher rate, but I am very used to having these two accounts separate.

[giggles]

I have mine split 75-25 with 75 in tax free munis

[Another Reader]

Kudy:

Why not two Sallie Mae money market accounts?

[James]

I use ING Direct which works well.

[rugorak]

I currently am with ING Direct as well. At the time they had one of the best rates and best security. Rates have steadily been going down since Capital One took over. Security has yet to change. After reading this and looking at it I am seriously considering moving to a Sallie Mae Money Market account though. For those who have it any complaints? Is the security good? Some people complain about things being too difficult but I'd rather things be slightly challenging yet secure.

Any feedback much appreciated!

[Done by Forty]

I'm with ING but have noticed that they're not often offering the best rate any longer.  I'm inclined to move but right now the delta is some fraction of a percent...

[capital]

The Fed wants you to spend or invest your money, rather than holding cash. Interest rates will be very low for a couple years, at least.
http://www.latimes.com/business/money/la-fi-mo-federal-reserve-fomc-stimulus-20121024,0,5250933.story

[kudy]

Kudy:

Why not two Sallie Mae money market accounts?

I guess I just assumed that I could only have 1!

[wkumtrider]

I know this is an old topic, but I was wondering what people are using today for money market and saving accounts.  I am looking to switch from my current bank.  Seems like Ally still has one of the highest interest rates (0.85%).  What banks are you using that you like?

[neo von retorch]

I've been using GE Capital Savings since August 2014. 1.05% APY

[wkumtrider]

Nice, thanks.  I'll look into GE.

[La Bibliotecaria Feroz]

We have Ally. Capital One 360 does not have quite as good a rate, but we had an account there last year because of their Black Friday promotion and discovered that they transfer funds faster (at least to our credit union) so if that's a consideration...