Author Topic: June 2022: Where can I find "high yield" online savings accounts? Do you trust?  (Read 1419 times)

Captain Cactus

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Good morning,

Where does one find the best online high-yield savings accounts (FDIC insured)? 

I bank with USAA but the savings interest rate is so low.  I really want a higher, FDIC-insured yield, but I have never done the banking with online high yield savings accounts (ie LendingClub, CITBank, etc...).

Are these types of banks trustworthy?  Any potential pitfalls that I should be aware of?


Captain Cactus

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Adding that we've already maxed our 2022 Ibonds allocation.

The Hin

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I bank with Ally (www.ally.com), it's FDIC insured and the interest rate was bumped up from .60% to .75% effective 5/27.  Historically speaking they've increased rates as the federal funds rate increased / circumstances allowed so I am anticipating that the interest rate on the Ally savings account will continue to rise as the Fed raises interest rates at future meetings.

My family has used Ally as our primary bank for 10+ years now with no problems; there are no physical bank branches but they reimburse for ATM fees so I haven't missed not having a bank building to visit.

Another Reader

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There is a website that tracks these.  www.depositaccounts.com.  It's comprehensive and has been around for many years.

RWD

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I've been using Ally since 2015 and been happy with them. The interest rates usually are very close to the best available and there are no minimum balances or hoops you have to jump through. I do virtually all our banking through the Ally account. Depositing checks via mobile app has worked great. We basically never spend cash, but when we were visiting Japan in 2019 we had no problem withdrawing yen from an ATM (no fees, or fees reimbursed).

MDM

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Best High-Yield Online Savings Accounts (updated monthly) | MagnifyMoney is another good reference.

We have used Marcus (was Goldman Sachs Bank and some other names) for years.  No problems.  Same could likely be said for many others.

neo von retorch

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I tried GS Bank / Marcus as well as Ally. They tend to match each other on rates, but GS Bank credits deposits instantly, and transfer money out in a single business day. Ally was much slower for me.

PDXTabs

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I've been using Ally since 2015 and been happy with them.

I too use Ally.

RWD

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I tried GS Bank / Marcus as well as Ally. They tend to match each other on rates, but GS Bank credits deposits instantly, and transfer money out in a single business day. Ally was much slower for me.
When was that? A while ago (back in 2017) Ally sped up their transfers. It always completes on the next business day for me now.
« Last Edit: June 02, 2022, 02:03:25 PM by RWD »

JLee

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I tried GS Bank / Marcus as well as Ally. They tend to match each other on rates, but GS Bank credits deposits instantly, and transfer money out in a single business day. Ally was much slower for me.
When was that? A while ago (back in 2017) Ally sped up their transfers. It always completes on the next business day for me now.
Ally also has Zelle now so if you're within the Zelle limits, transfers can be practically instant.

neo von retorch

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I tried GS Bank / Marcus as well as Ally. They tend to match each other on rates, but GS Bank credits deposits instantly, and transfer money out in a single business day. Ally was much slower for me.
When was that? A while ago (back in 2017) Ally sped up their transfers. It always completes on the next business day for me now.

October 2018 - February 2019.

RWD

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I tried GS Bank / Marcus as well as Ally. They tend to match each other on rates, but GS Bank credits deposits instantly, and transfer money out in a single business day. Ally was much slower for me.
When was that? A while ago (back in 2017) Ally sped up their transfers. It always completes on the next business day for me now.

October 2018 - February 2019.

Okay, maybe the transfer(s) you did weren't eligible for 1-day. Apparently you have to do at least one $250 transfer in and out of the external account then wait 2 months. I do a couple transfers a month and I can't remember the last time it didn't finish the next business day.
https://www.mymoneyblog.com/ally-bank-1-day-ach-transfer-review.html

neo von retorch

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*shrug*

Only had an Ally savings account. Checking my records all transfers in and out took 2 business days. Not a huge inconvenience compared to 1 day, but with the rate being the same, I just felt better going with GS Bank. Nothing on that page would qualify any of my transactions as "ineligible" except the 2-month waiting period, which Ally never made me aware of (except, perhaps, in fine print.) Bad job communicating on their part :)

Ironically the transfer out of all my funds may have taken just 1 day (if my recorded posting dates are accurate), but by then they had burned their bridge for me.

anni

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SoFi is offering 1.25% APY on checking and savings if you set up direct deposit, any amount. I am able to mess with my direct deposit allocations on my own through my work's payroll portal, maybe you can too. SoFi's app is great and they have all the digital bells and whistles. I think I am also waiting on a new account bonus. Highly recommend.

frugalor

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HMDBradley gives 3%
One Finance also gives 3% for part of the deposit

You can watch some youtube videos to learn about them.

I use both, but they are probably more risky than other banks like Sofi or Ally.

Sofi's 1.25% is next best thing, but you need to have direct deposit.

I am waiting for Voyager Digital Debit Card to see if they offer any kind of ACH functionality.  They give 9% in USDC.  But it's probably very risky to put a large amount of money there.

sonofsven

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You can find a list at Doctor Of Credit-->Bank Accounts-->Best High Yield Savings Accounts.

cats

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Depending on how much $$ you are looking to park, several banks (Citi and Chase in particular come to mind) will offer a bonus for opening a new account and jumping through a couple of hoops (making X deposits, signing up for direct deposit, maintaining a certain minimum balance for X amount of time).  Keeping an eye out for these and moving your money around to capture bonuses periodically can definitely boost your effective yield.