Anyone have a high interest savings account?

[lukenick1]

Looking to open a savings account with high interest, I have looked online but I do not recognize any of the banks listed with high interest rates. Anyone have this type of account? Can you share which one and your experience? THanks

 

[DLgal]

Ally. It's a major online bank. Rate is currently at 2.25%

I love this bank. Have had my savings there for about 5 years. The savings rate fluctuates based on the rate set by the Fed. It links easily to outside accounts for electronic transfers.

 

[cvjw]

My financial advisor recommended Ally. He keeps his cash there. We opted to just keep ours in a Schwab pass thru account that has almost the same interest rate. Made transferring the money easier with it all in one place.

 

[DCLMP]

It’s sad that 2.25% is considered high.

 

[DLgal]

It’s sad that 2.25% is considered high.

It's a savings account. There are other places to park cash if you want higher returns.

 

[tvguy]

It’s sad that 2.25% is considered high.

Yup. I had my life savings in a CD at the local Savings and Loan in 1982 earning 16%.

 

[DCLMP]

It's a savings account. There are other places to park cash if you want higher returns.

That doesn’t make it any less sad.

 

[DCLMP]

Yup. I had my life savings in a CD at the local Savings and Loan in 1982 earning 16%.

My parents opened one for for me in the 70’s. At about the same rate. 18 years later It paid for me college and then some. They never had to add to it.

 

[georgina]

Yup. I had my life savings in a CD at the local Savings and Loan in 1982 earning 16%.

Yes, and when we bought as house in 1987 the interest rate on the loan was 9%. They are all connected, high interest on savings and high interest on borrowing.

We took out a fixed interest rate annuity 4 years ago at a flat 3.5% per year. I am curious when it matures next year what rate they will offer.

 

[DCLMP]

Yes, and when we bought as house in 1987 the interest rate on the loan was 9%. They are all connected, high interest on savings and high interest on borrowing.

We took out a fixed interest rate annuity 4 years ago at a flat 3.5% per year. I am curious when it matures next year what rate they will offer.

Houses were a lot cheaper back then so it’s relative. My parents paid 28k for their house in Southern California in 1970. You used to actually be able to save and pay cash for a house. Negative interest rates is why Europe is in the mess it’s in and why we will be soon.

 

[tvguy]

Yes, and when we bought as house in 1987 the interest rate on the loan was 9%. They are all connected, high interest on savings and high interest on borrowing.

We took out a fixed interest rate annuity 4 years ago at a flat 3.5% per year. I am curious when it matures next year what rate they will offer.

Yup. We jumped to buy our house in 1983 when mortgage rates plunged from 16% to 12.25 percent.
My daughter refinances here 3.5% mortgage to 2.2% last year.

 

[DCLMP]

Yup. We jumped to buy our house in 1983 when mortgage rates plunged from 16% to 12.25 percent.
My daughter refinances here 3.5% mortgage to 2.2% last year.

Id rather have a 100,,000 dollar house with a 8% mortgage then the the same house costing 700,000 with a 2% mortgage. . Debt is debt. Lower interest rates just means higher prices.. If you were able to refinance that’s a win, but most people refinance and pull money out taking on more and more debt. Consumer debt is currently at an all time high.

 

[tvguy]

Id rather have a 100,,000 dollar house with a 8% mortgage then the the same house costing 700,000 with a 2% mortgage. . Debt is debt. Lower interest rates just means higher prices.. If you were able to refinance that’s a win, but most people refinance and pull money out taking on more and more debt. Consumer debt is currently at an all time high.

Just like my neighbor across the street. She and her husband bought their house in 1979 for $75,000. Husband kept taking equity out of the house. He died 6 years ago. 43 years in the house, she still owes $60,000. I can't imagine being in that position. She lost her husband, lost his income, and is 71 now and stuck with a house payment.

 

[disney-inspired]

I have my sinking funds through Capital One - current APY is 2.20% which is nice for my short term savings.

 

[DCLMP]

Just like my neighbor across the street. She and her husband bought their house in 1979 for $75,000. Husband kept taking equity out of the house. He died 6 years ago. 43 years in the house, she still owes $60,000. I can't imagine being in that position. She lost her husband, lost his income, and is 71 now and stuck with a house payment.

It even worse when housing prices crash and you end up underwater because of those types of decisions. I’m afraid a lot of people have done just that though.I f interest rates we’re higher neither scenario would happen.

 

[mickey916]

Discover Bank savings accounts are currently at 2.25%

 

[DLgal]

That doesn’t make it any less sad.

What is sad about it? The banks can't just pay whatever interest they want. They have to align with interest rates set by the Fed. If they were paying 15% interest, we'd all be in big trouble.

 

[robinb]

Just like my neighbor across the street. She and her husband bought their house in 1979 for $75,000. Husband kept taking equity out of the house. He died 6 years ago. 43 years in the house, she still owes $60,000. I can't imagine being in that position. She lost her husband, lost his income, and is 71 now and stuck with a house payment.

I have a friend who bought her house for $70K back in the 1990's. Between $60k in home equity loans and two foreclosures she roughly still owes $130k, after paying most of that time. She's in her mid-60's and on a Social Security limited income. She has roommates to help her pay for her housing related expenses.

I keep cash in my brokerage account. It's making about 2.5% now.

 

[georgina]

Some of the above comments clearly show a lack of financial literacy among Americans. I taught my kids the basics, they didn’t learn it in school. Most of my financial education was self-taught after I graduated from college.

some of my cash is in a Vanguard brokerage money market making about 2.8%. Other cash in Marcus by Goldman Sachs, currently at 2.25% because I get an extra 0.1% for being an AARP member. Marcus is very easy to work with.

 

[eticketplease]

Ally, Capital One, Discover and PenFed.

Ally seems to raise rates the fastest.
Ally & Capital One do not require anything to open.
Not sure if Discover does now or not but when I opened it I had to open with 5 or 15k but that may have been to get an account opening bonus.
PenFed is still only 1.7%