Online savings account

[Big_D]

There are lots of high yield savings accounts available, just wondering if anyone has given these a shot. I’m trying to make more than the paltry rate most banks offer. Just hoping to find a trustworthy savings over 5% and the reviews are giving me a headache!

Any recommendations, warnings or personal experiences would be greatly appreciated!

 

[Creeper]

You mean you don't think it's fair that a bank charges you 22% interest on your credit card but pays you .25% interest on your deposits?

I have some series I bonds. The are like EE bonds except they are indexed to inflation. There were paying somewhere between 6% - 7% a while back. Not sure what they are paying now. They have no maturity date either. As long as you own them they pay interest. You buy and sell them online. You just have to keep them for 1 year or you lose interest.

 

[CyberB0b]

There’s almost 0 risk with an FDIC insured bank, online or not.

 

[rags747]

There’s almost 0 risk with an FDIC insured bank, online or not.

Only up to $250, after that say Goodbye.

 

[rags747]

There are lots of high yield savings accounts available, just wondering if anyone has given these a shot. I’m trying to make more than the paltry rate most banks offer. Just hoping to find a trustworthy savings over 5% and the reviews are giving me a headache!

Any recommendations, warnings or personal experiences would be greatly appreciated!

Set yourself up with a financial advisor that will get you involved you in a bucket of stocks, mutual funds. Can never stay ahead with your money in the bank. Now, you probably need to do some educating of yourself as well but you will be able to sleep better at night. Good luck…

 

[CyberB0b]

Only up to $250, after that say Goodbye.

250k. I assume someone asking about this on a cowboys forum doesn’t have 250k in cash.

 

[rags747]

250k. I assume someone asking about this on a cowboys forum doesn’t have 250k in cash.

I guess I’m pointing out that it is no longer $100k. It changed to $250k in 08 due to the impending collapse of the world financial system. $250k was an attempt to make people have more faith in their banking institutions.

 

[Creeper]

I guess I’m pointing out that it is no longer $100k. It changed to $250k in 08 due to the impending collapse of the world financial system. $250k was an attempt to make people have more faith in their banking institutions.

It is insured up to $250k for each owner of the account. A joint account is insured for up to $500k. But what happens when a bank fails is the FDIC will first attempt to sell the assets of the failed bank to another bank. The new bank will agree to hold your deposits in total. Only when a bank cannot be sold will depositors lose assets over $250k. You can also protect multiple accounts by putting them in trusts. An account owned by you can be protected up to $250k, but then an additional trust at the same bank can also be insured up to $250k.

The truth is no one wants their money in a bank that is failing. It takes time and effort to get your money back. This is why when a bank looks shaky you will see a run on deposits FDIC or not.

 

[CyberB0b]

@Big_D I recommend keeping enough liquid cash in a bank for any emergency that might pop up. Personally, I have never needed more than ~5k cash for anything, so that's all I keep in a local bank where I can access the money right away. The rest of my emergency fund, I keep in my Fidelity brokerage account. Robinhood has something similar, over 5% interest. This money is for a big emergency, like a job loss or something, and it is 6 months of expenses.

Anything here would be fine:

https://www.bankrate.com/banking/savings/best-high-yield-interests-savings-accounts/

 

[CalPolyTechnique]

There are lots of high yield savings accounts available, just wondering if anyone has given these a shot. I’m trying to make more than the paltry rate most banks offer. Just hoping to find a trustworthy savings over 5% and the reviews are giving me a headache!

Any recommendations, warnings or personal experiences would be greatly appreciated!

I’ve been using Wealthfront and can’t recommend them enough. I’m getting 5%

 

[big dog cowboy]

Just hoping to find a trustworthy savings over 5%

Those should be available where you live. They aren't exclusive to online at all.

 

[Hardline]

I use Wells Fargo. Money market account. I'm getting 5.5%

 

[Creeper]

I use Wells Fargo. Money market account. I'm getting 5.5%

Is that an introductory rate for opening a new account?

 

[Hardline]

Is that an introductory rate for opening a new account?

It was a CD. Not a money market account. Sorry about that. Wells Fargo doesn't offer money markets right now.

 

[CalPolyTechnique]

There are lots of high yield savings accounts available, just wondering if anyone has given these a shot. I’m trying to make more than the paltry rate most banks offer. Just hoping to find a trustworthy savings over 5% and the reviews are giving me a headache!

Any recommendations, warnings or personal experiences would be greatly appreciated!

Wealthfront.

 

[Creeper]

It was a CD. Not a money market account. Sorry about that. Wells Fargo doesn't offer money markets right now.

Thanks.

I am buying T-Bills with money I don't need. You can get them with terms as short as 4 weeks. They are paying over 5% annually and are state tax from, which if you live in a state with high income taxes it is a nice feature. Of course Texans don't have that problem.