Author Topic: High Interest Savings account  (Read 8109 times)

GutsGloryRam

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High Interest Savings account
« on: January 16, 2014, 02:25:01 PM »
Hi Evrybdy,

I have created some emergency fund in one of the credit union's as savings account. But am not happy with their 0.2% APY. Can I know where u guys parked your emergency fund? I am thinking Saving account would be good. Ofcourse rest of the money goes to Vanguard. This fund is kind of "only touch during emergency" type. Pls share your ideas on where we can get better savings account APY.

Thank u.

« Last Edit: January 16, 2014, 02:41:01 PM by ram »

KingCoin

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Re: High Interest Savings account
« Reply #1 on: January 16, 2014, 02:40:26 PM »
I'd do a search. There's one of these threads every month or so.
http://www.mrmoneymustache.com/forum/investor-alley/small-emergency-fund-ally-5-yr-cds-i-bonds/

Cheddar Stacker

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Re: High Interest Savings account
« Reply #2 on: January 16, 2014, 02:46:02 PM »
Online checking accounts tend to have good rates. I've heard people refer to capital one 360 on the forums.

I use a local bank that treats it's customers well. They require you receive paperless statements, have automatic debits (direct deposit paycheck), and they require at least 12 debit transactions/month. It sounds like a lot of hassle, but in exchange for that they refund all ATM fees you might incur and pay 2.10% interest on your checking balance up to $25K. The rate is variable based on prime, and when I opened the account 4-5 years ago it was 5.35%.

I think the online checking accounts have similar terms, but I haven't heard a rate as high as mine anywhere. The only draw back is it makes you lazy with your cash since you keep more there, and there's less urgency to immediately invest extra funds.

Nothlit

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Re: High Interest Savings account
« Reply #3 on: January 16, 2014, 03:06:05 PM »
Over the past few years I have used a combination of I Bonds and a Reward Checking Account (currently paying 2% but originally started around 4.5%) for my emergency fund & short-term savings.

You can read about both at depositaccounts.com

geekette

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Re: High Interest Savings account
« Reply #4 on: January 16, 2014, 03:29:04 PM »
Online checking accounts tend to have good rates. I've heard people refer to capital one 360 on the forums.
We started a (very short) referral thread for Capital 360 here.  Right now they're giving a bonus to the referrer and the referee for both checking and savings account.  Their savings APY is only .75% right now, but the website is good, and moving money's pretty quick and easy.

SavingMon(k)ey

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Re: High Interest Savings account
« Reply #5 on: January 16, 2014, 03:38:41 PM »
I just opened one for the same purpose yesterday. Highest rate I could find was at GE Capital Retail Bank, which offers 0.90% right now, $50 minimum. They also have a promotional 15-month CD for 1.15% with a minimum of $2000 (look for the code on the website)

Eric

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Re: High Interest Savings account
« Reply #6 on: January 16, 2014, 04:18:54 PM »
All you need for a high interest savings account is a time machine and an adventurous spirit.  :)

seattlecyclone

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Re: High Interest Savings account
« Reply #7 on: January 16, 2014, 04:36:12 PM »
Yeah, there's really no such thing as a "high interest savings account" anymore. You can get a fraction of a percent at your local brick-and-mortar bank or credit union, or you can get a higher fraction of a percent at an online bank. The difference between 0.2% and 0.75% on a $10k emergency fund is a whopping $55/year.

You might as well go for the option with a higher interest rate, but there's no reason to get too hung up on this decision.

CanuckExpat

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Dee18

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Re: High Interest Savings account
« Reply #9 on: January 17, 2014, 06:50:03 AM »
I just moved money to a 3% PenFed  5 year cd.  If I had to withdraw it early for an emergency, I would lose some of the earned interest, but would still come out ahead of the savings account earnings from where I previously had the money.

GutsGloryRam

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Re: High Interest Savings account
« Reply #10 on: January 17, 2014, 07:32:31 AM »
Thanx a lot for ur valuable inputs....i would probably open an online saving account...But as seattlecyclone said, looks like there is no high interest savngs account anymore...Thanx once again......

wtjbatman

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Re: High Interest Savings account
« Reply #11 on: January 17, 2014, 08:15:30 PM »
I have all of my emergency fund in gold. Precious metals are always a wise and fruitful investment.

iamlindoro

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Re: High Interest Savings account
« Reply #12 on: January 17, 2014, 08:51:43 PM »
I have all of my emergency fund in gold. Precious metals are always a wise and fruitful investment.

Good one.

the fixer

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Re: High Interest Savings account
« Reply #13 on: January 17, 2014, 09:01:54 PM »
I have a similar checking account as Cheddar Stacker, which pays about 3% APY if I jump through all their hoops. It's not a free lunch, though, because by requiring 12 debit card transactions per month there's an opportunity cost of not being able to game credit card rewards as much. You also shouldn't project to get 3% over a year; you're likely to mess up one or two months unless you really stay on top of meeting all your requirements or you naturally do lots of transactions (which can't be that mustachian...)

Cheddar Stacker

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Re: High Interest Savings account
« Reply #14 on: January 18, 2014, 08:20:52 PM »
It has some draw backs for sure, but I think it's worth it. Wife and I each have a card, so only 6 transactions/month. Really more 2-3 for me and 12ish for her. We also tend to use it for the smaller stuff like a quick wherever for one or two items. Mostly purchases under $20 and save the larger transactions for the credit card to get the rewards.

3% is very nice though, congrats for finding it.

Joel

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Re: High Interest Savings account
« Reply #15 on: January 19, 2014, 11:03:43 AM »
Online checking accounts tend to have good rates. I've heard people refer to capital one 360 on the forums.

I use a local bank that treats it's customers well. They require you receive paperless statements, have automatic debits (direct deposit paycheck), and they require at least 12 debit transactions/month. It sounds like a lot of hassle, but in exchange for that they refund all ATM fees you might incur and pay 2.10% interest on your checking balance up to $25K. The rate is variable based on prime, and when I opened the account 4-5 years ago it was 5.35%.

I think the online checking accounts have similar terms, but I haven't heard a rate as high as mine anywhere. The only draw back is it makes you lazy with your cash since you keep more there, and there's less urgency to immediately invest extra funds.

This is where I have my account at as well. A local credit union that pays 1.55% on the first 10k. I find that I really don't need to have too much more than that available in liquid cash.

thepokercab

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Re: High Interest Savings account
« Reply #16 on: January 19, 2014, 11:20:32 AM »
I'm using an online savings account through American Express, to save up for our first home down payment.  0.85%. 

ncornilsen

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Re: High Interest Savings account
« Reply #17 on: January 19, 2014, 12:57:24 PM »
Smartypig.com is @ 1.00 APY. takes two or three days to get your money, no hoops, no minimum balance.




athomeintheworld

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Re: High Interest Savings account
« Reply #18 on: January 20, 2014, 11:01:16 AM »
Pentagon FCU CD's