Anyone have a high interest savings account?

[mickey916]

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%

Add Sofi to the list as well… they raise rates very quickly

 

[DCLMP]

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.

Did I ever say the banks can pay whatever interest rates they want? I know who sets the interest rates and I know more about the Fed than I care too.

 

[DCLMP]

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.

Geez. Why didn't she sell.

 

[Carol_]

Redneck Bank is a real bank with great rates
https://redneck.bank/accounts/redneck-rewards-checkin-account

 

[DCLMP]

Doctor of credit lists all the best interest rates and bank bonuses for opening account. I would get that site a look.

 

[tvguy]

Geez. Why didn't she sell.

Well, for some seniors a bad equity situation is better than other options they have like selling.
Where will they live and will it cost more? Example had the person owing $130,000. Not many places you can buy anything today for three times that. And rent may end up being more than the house payment.

 

[eticketplease]

Redneck Bank is a real bank with great rates
https://redneck.bank/accounts/redneck-rewards-checkin-account

Very interesting. Unfortunately you have to use a debit card 10 times a month to get the higher interest rate and I try to get cash back/miles with credit cards

 

[DCLMP]

Well, for some seniors a bad equity situation is better than other options they have like selling.
Where will they live and will it cost more? Example had the person owing $130,000. Not many places you can buy anything today for three times that. And rent may end up being more than the house payment.

I can see that, but selling and waiting might have been an option or downsizing. I know hind sight is 20\20. There have been a couple of times I wish we would have sold, but I couldn't convince the other half. We still have to work for another 15 years and he likes his job and living here.,, me not so much.

 

[chicagodisneyguy]

If you don't think you will need the money anytime soon i've been buying treasury bills. Current 3m bills are 3.65% and 6m bills are 4.18%. Treasurydirect.gov is easy to use. Just hook up your savings/checking account and easily buy the bills. Fed is probably gonna go another 1.25% in the Nov/Dec meetings so those rates will just keep moving up. You can set it to auto re-invest in the current treasury auction once matured or they funds just go right back to your bank account.

You can also buy the I-Bonds there that have have been paying an insane rate due to the fact they are tied to inflation.

I currently have all my liquid cash parked in different duration treasuries, sans our house "emergency" fund that is just in a basic savings account.

 

[robinb]

Geez. Why didn't she sell.

She's in her late 60's and permanently disabled so she can't work. If she sells she will clear about $200K and she has no savings to speak of, so that would be her retirement: $200k and less than $1,000k a month in social security. She would still need to find a place to live (with her dog) and she would still have to pay for utilities all on her own. Apartments are expensive here, even for low income seniors, so she would spend all of her social security plus more on just rent. The $200k would not last long paying for the rest.

With my help, she caught up on her bills and everything is now on autopilot. The house pays for itself and she lives there for free. But, she made tons of mistakes along the way like tvguy's neighbor which was my point.

 

[barkley]

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

wages were also allot lower back then so that's relative to the price too. the median u.s. income in 1970 was about $9870 so for the average person to pay cash for the type of house your parents bought it would have taken over 3 years based on someone's GROSS income if they saved every penny and likely much longer given the federal and california state income tax rates at the time.

 

[DCLMP]

wages were also allot lower back then so that's relative to the price too. the median u.s. income in 1970 was about $9870 so for the average person to pay cash for the type of house your parents bought it would have taken over 3 years based on someone's GROSS income if they saved every penny and likely much longer given the federal and california state income tax rates at the time.

The median income today is only 44,000. You can't buy a house making the median income today either. My parents paid cash for thier first house. Like most homebuyers then and today they were making above the median income.

 

[mattburmeister]

The medium income today is only 44,000. You can't buy a house making the medium income today either. My parents paid cash for thier first house. Like most homebuyers then and today they were making above the medium income.

Median income.

 

[DCLMP]

Median income.

Sorry for the typo. My phone has a mind of its own.

 

[tvguy]

I can see that, but selling and waiting might have been an option or downsizing. I know hind sight is 20\20. There have been a couple of times I wish we would have sold, but I couldn't convince the other half. We still have to work for another 15 years and he likes his job and living here.,, me not so much.

My wife and I put a lot of value on staying where we are, for vastly different reasons.
Me, because I have lived in just 4 houses in my 65 years, all within 6 miles of where I am right now. Just don't see a reason to move
My wife is an Air Force Brat so she moved a lot until age 10 when her parents got divorced, then moved cross country with her mom, and she can't keep track of how many different rentals she lived in with her mom. Just when she made friends growing up, she moved.

 

[disney-inspired]

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%

I have my emergency fund with PenFed and haven't checked it since I haven't had to use that money. Good to know it's up though.

 

[platamama]

Ally is running a promotion right now for new funds deposited with them (good for both existing and new clients). Up to $500 max bonus ($50K new funds), you get 1% of the funds deposited in addition to the 2.25% Ally's savings accounts pay currently. Have to keep funds in there until 1/15/22. This is an annualized 6.25% (at minimum, since Ally increases their rates according to the market) on the deposit amount. Check out the DoC blog post HERE. Offer expires 10/21/22.

T bills/notes could be attractive if you have high state and local income taxes since the interest earned is not taxed for state/local taxes. You'll pay federal taxes though.

I bonds are 9.62% through the end of October, then the rate will reset to ~6.47% in November. This does tie up your money at least for 12 months though, but if held at least 15 months - if purchased by end of October - you'd get an annualized 8.21% return.* Interest is taxed only at the federal level. You pay a 3 month interest penalty if redeemed before 5 years, hence the 15 months in the calculations.

* from this article https://seekingalpha.com/article/4546408-i-bonds-what-next

 

[lukenick1]

Does Ally have fees?

I have my emergency fund with PenFed and haven't checked it since I haven't had to use that money. Good to know it's up though.

Does ALLY have fees?

 

[lukenick1]

Ally is running a promotion right now for new funds deposited with them (good for both existing and new clients). Up to $500 max bonus ($50K new funds), you get 1% of the funds deposited in addition to the 2.25% Ally's savings accounts pay currently. Have to keep funds in there until 1/15/22. This is an annualized 6.25% (at minimum, since Ally increases their rates according to the market) on the deposit amount. Check out the DoC blog post HERE. Offer expires 10/21/22.

T bills/notes could be attractive if you have high state and local income taxes since the interest earned is not taxed for state/local taxes. You'll pay federal taxes though.

I bonds are 9.62% through the end of October, then the rate will reset to ~6.47% in November. This does tie up your money at least for 12 months though, but if held at least 15 months - if purchased by end of October - you'd get an annualized 8.21% return.* Interest is taxed only at the federal level. You pay a 3 month interest penalty if redeemed before 5 years, hence the 15 months in the calculations.

* from this article https://seekingalpha.com/article/4546408-i-bonds-what-next

Does Ally have fees? Saw a note fees may reduce earnings. Some sites that compare them say no fees at Ally so I am confused.

 

[platamama]

Does Ally have fees? Saw a note fees may reduce earnings. Some sites that compare them say no fees at Ally so I am confused.

I've banked with Ally for over 10 years and have never paid a fee for having an account there. Like all savings accounts, there is a penalty if you withdraw over 6 times in a statement cycle. Read the terms from Ally's website directly to get it straight from the horse's mouth.