Business & Investing
Sponsored by

High Yield Savings account

5,292 Views | 32 Replies | Last: 4 days ago by Fenrir
Aggie Dad 26
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
8:28p, 12/20/24
If someone reading this is new to investing or savings, I highly recommend starting out with opening a High Yield savings account.

My mother put me on to this a few years ago and I wish I had known more about this sort of thing when I was in my 20s.

You'll get around 4% back compared to your traditional banks that offer a fraction of that. There is zero catch with this. I've opened several accounts which were all free and I use an account for a different idea/project. It's helped me tremendously.

Around the new year, I'll be adding a 5th account for saving/purchasing next year's Christmas gifts. Putting around $30 a month in my "Christmas savings" so that I can pay for gifts with cash and not have to pull money from anywhere else.

Ill recommend "Synchrony" do a quick Google search, download their app. I initially used them for a c.d but c.d rates have plummeted.

Using Synchrony or any high yield will help combat inflation. If you're using a traditional savings, you're actually losing money long term via inflation.

I hope this helps someone
Reply Quote
11
2 edits
Brian Earl Spilner
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
9:57p, 12/20/24
AG
I don't mean to be a jerk, but I'm fairly sure everyone on this board is aware of their existence.

This is sort of like going to the Entertainment Board and recommending people check out Star Wars.
Reply Quote
32
1 edit
Dr. Doctor
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Brian Earl Spilner • 7:01a, 12/21/24
AG
What is this "star wars" you speak of?
Reply Quote
10
TheMasterplan
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
8:55a, 12/21/24
Everybody just see chase and BoA banks everywhere and unfortunately think those are the only options out there.

If you live in Texas, Texas Capital Bank is your best option - I think. I'm not aware of another better option in money market funds.
Reply Quote
Spaceship
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Brian Earl Spilner • 8:56a, 12/21/24
AG
Brian Earl Spilner said:
I don't mean to be a jerk, but I'm fairly sure everyone on this board is aware of their existence.

This is sort of like going to the Entertainment Board and recommending people check out Star Wars.

Go easy, he's class of 1926. Word travels slowly in that generation. The real story here is that his mother is still with us.
Reply Quote
9
Aggie Dad 26
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Brian Earl Spilner • 9:02a, 12/21/24
Brian Earl Spilner said:
I don't mean to be a jerk, but I'm fairly sure everyone on this board is aware of their existence.

This is sort of like going to the Entertainment Board and recommending people check out Star Wars.


I work with people who have no clue on high yield savings. I assume everyone here does but someone making the trip over here out of boredom may not

I didn't until I did
Reply Quote
14
YouBet
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Aggie Dad 26 • 3:25p, 12/21/24
AG
Aggie Dad 26 said:
Brian Earl Spilner said:
I don't mean to be a jerk, but I'm fairly sure everyone on this board is aware of their existence.

This is sort of like going to the Entertainment Board and recommending people check out Star Wars.


I work with people who have no clue on high yield savings. I assume everyone here does but someone making the trip over here out of boredom may not

I didn't until I did


I'm not going to mock you. It's good information and most of America is financially ignorant.

Wait until you discover HSAs!!
Reply Quote
8
fulshearAg96
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
8:06p, 12/21/24
AG
We landed on the moon!

Kidding… great info especially for folks just starting out
Reply Quote
4
aggiebq03+
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
5:42a, 12/22/24
For me there is a catch, and that's an extra savings account to remember to save the password for and any time or mental energy spent dealing with it. If you already have after tax savings you are doing at Fidelity/Vanguard/etc just use their money market account. Unless you have substantial cash saved for something and then it might be worth it to chase the extra 1% temporary teaser rate somewhere.

Generally I find taking that energy chasing 1% extra on sub-six figure cash holdings to be better spent on investing in yourself by reading a book, improving your health, focusing on your career, spending time with family, or most any other self improvement.
Reply Quote
5
Proposition Joe
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
6:56a, 12/22/24
I think there is a difference between what OP is making people aware of and a lot of the other "duh!" type stuff. Though if someone found their way to this forum they probably already have a decent idea.

A *lot* of people that have accounts at these big branches - sometimes created decades ago - that don't realize they aren't the same as every big brick and mortar bank out there.

A big part of the reason Bank of America savings account interests are as ridiculously bad as they are - they've determined the number of people who don't know any better and will just leave their funds in "the bank they've always used" savings at 0.05% outweigh the number of people that will jump to a 3-4% account at another bank.
Reply Quote
5
AgEng06
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Dr. Doctor • 9:25a, 12/22/24
AG
Dr. Doctor said:
What is this "star wars" you speak of?

Reply Quote
6
Aggie Dad 26
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to fulshearAg96 • 8:21p, 12/22/24
fulshearAg96 said:
We landed on the moon!

Kidding… great info especially for folks just starting out


I think a lot of younger people (folks in their 20s) are too intimidated or lack whatever it takes to jump into investing in stocks. Most probably assume, like I did, that it's overly risky. There are countless options with stocks that are very low risk.

With that said, people that I've spoken to in my personal life, I've tried to get them into a high yield if they're declining a mutual fund or ETF for investing.

I like doing both high yield and stocks
Reply Quote
2
OldArmyCT
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Proposition Joe • 8:25p, 12/22/24
AG
Proposition Joe said:
I think there is a difference between what OP is making people aware of and a lot of the other "duh!" type stuff. Though if someone found their way to this forum they probably already have a decent idea.

A *lot* of people that have accounts at these big branches - sometimes created decades ago - that don't realize they aren't the same as every big brick and mortar bank out there.

A big part of the reason Bank of America savings account interests are as ridiculously bad as they are - they've determined the number of people who don't know any better and will just leave their funds in "the bank they've always used" savings at 0.05% outweigh the number of people that will jump to a 3-4% account at another bank.
Bank of America owns Merrill, bankers get compensated for referring customers to Merrill. A lot of branches have a Merrill rep in them, those reps are trained to handle low dollar customers and those inclined to invest on their own. I'm a BoA/Merrill client and the latter has a money market paying +4%. The impediment though is the entry bar. They, and their big bank clones, cater to $$'s.
Reply Quote
1
Petrino1
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to OldArmyCT • 8:07a, 12/23/24
OldArmyCT said:
Proposition Joe said:
I think there is a difference between what OP is making people aware of and a lot of the other "duh!" type stuff. Though if someone found their way to this forum they probably already have a decent idea.

A *lot* of people that have accounts at these big branches - sometimes created decades ago - that don't realize they aren't the same as every big brick and mortar bank out there.

A big part of the reason Bank of America savings account interests are as ridiculously bad as they are - they've determined the number of people who don't know any better and will just leave their funds in "the bank they've always used" savings at 0.05% outweigh the number of people that will jump to a 3-4% account at another bank.
Bank of America owns Merrill, bankers get compensated for referring customers to Merrill. A lot of branches have a Merrill rep in them, those reps are trained to handle low dollar customers and those inclined to invest on their own. I'm a BoA/Merrill client and the latter has a money market paying +4%. The impediment though is the entry bar. They, and their big bank clones, cater to $$'s.
There's tons of HYSA banks out there paying 4%+ with no entry requirement. Dont need to be a big money guy to take advantage of these accounts.
Reply Quote
5
gigemhilo
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Proposition Joe • 8:41a, 12/23/24
AG
Proposition Joe said:
A *lot* of people that have accounts at these big branches - sometimes created decades ago - that don't realize they aren't the same as every big brick and mortar bank out there.

A big part of the reason Bank of America savings account interests are as ridiculously bad as they are - they've determined the number of people who don't know any better and will just leave their funds in "the bank they've always used" savings at 0.05% outweigh the number of people that will jump to a 3-4% account at another bank.

Typically banks offer higher rates when they need more deposits for their asset ratios. The BOAs out there don't really need more deposits. The online banks have to have some sort of attraction to get people to move money to them.
Reply Quote
1
techno-ag
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
9:42a, 12/23/24
AG
Trump will fix it.
Reply Quote
1
YouBet
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
9:44a, 12/23/24
AG
Check here to find a HYSA in your zip: Best High-Yield Savings Accounts Of December 2024 - Up to 5.05% | Bankrate
Reply Quote
halfastros81
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
12:44p, 12/25/24
AG
Getting 4.57% in money market fund TMCXX. No time commitment
Reply Quote
1
1 edit
TheMasterplan
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to aggiebq03+ • 7:40p, 12/25/24
It's actually not hard to manage this with apps these days. And creating an account took about 15 minutes.

Diversifying your bank accounts makes banks more competitive.
Reply Quote
1
Aggie Dad 26
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to TheMasterplan • 8:52p, 12/25/24
TheMasterplan said:
It's actually not hard to manage this with apps these days. And creating an account took about 15 minutes.

Diversifying your bank accounts makes banks more competitive.


This!

For those that haven't, I've been stressing just how quick and easy it is when the topic has come up in my personal life
Reply Quote
aggiebq03+
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to TheMasterplan • 9:20p, 12/25/24
TheMasterplan said:
It's actually not hard to manage this with apps these days. And creating an account took about 15 minutes.

Diversifying your bank accounts makes banks more competitive.

That's not as fast as moving money to my already open money market account. And certainly I don't want to keep up with multiple accounts when one will do in order to squeeze out 0.5% extra on a sub $10k amount of money. That's $50.
Reply Quote
Lathspell
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
5:11p, 1/7/25
AG
I kept my emergency savings with Lending Club for the last 1.5 years but they just sent me a notification saying they're lowering the APY from 4.00% to 3.70%.

Anyone still offering over 4.5% out there for HYS? If not, I may go ahead and just pull it out of my HYS and put that in a money market with my financial advisor.
Reply Quote
Philip J Fry
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
5:53p, 1/7/25
AG
Really appreciate the OP.
Reply Quote
1
txaggie_08
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Lathspell • 6:23p, 1/7/25
AG
My currently HYSA at CIT Bank is getting 4.258%; which is slightly better than Schwab's SWVXX MMF.

If you check out Bankrate or Nerdwallet, they're showing some HYSAs around 4.75 still.
Reply Quote
Aggie_2463
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
9:12p, 1/12/25
AG
I'm more wondering how you get away with spending $360
On Xmas gifts
Reply Quote
1
1 edit
Drawkcab
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
10:36p, 1/12/25
Someone here mentioned Digital Credit Union a few years ago. They have a savings account at 6.17% APY. The drawback is they cap it to the first $1,000 and then the rate drops to 0.05%.

I have $1,000 there, but I just read they offer the same rate (and same cap) on a checking account so I may open one and put some more money there. It's a credit union so you either have to live in their area or make a donation to a local charity to open an account. I think the charity is some sort of organization that feeds children. Don't remember the amount of the donation but I wouldn't have done it if the interest wouldn't have covered it in less than a year. I have a referral link for a free $20 if anyone is interested.
Reply Quote
Tex117
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
10:10a, 1/13/25
AG
Compelling advice. Really makes you think

(But really dude, a High Yield Savings Account has only become in anyway worth it since the Fed started their rate increase cycle)
Reply Quote
1
Reload8098
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
6:54a, 1/14/25
AG
There's a cluster with similar rates but I'm seeing the best rates from Bask.
Reply Quote
idAg09
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
8:29a, 1/14/25
Anyone at Texas Capital Bank? They are showing 4.5% apy.

I am looking to change from Marcus since they are under 4% now
Reply Quote
1
Reload8098
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to idAg09 • 3:35p, 1/15/25
AG
Total assets are $31.6B. I think you're good.
Reply Quote
Proposition Joe
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
5:09p, 1/15/25
One thing to be aware of with many of these "lesser known" HYSA's is that often times their online infrastructure isn't up to snuff. Flagstar offers a really nice APY, but it's also pulling teeth to try and get money out (and their 2FA text authorization is all of 4 digits... 2FA aint secure as it is, a 4 digit one is laughable).
Reply Quote
1
Aggie Dad 26
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Proposition Joe • 3:59p, 1/16/25
Proposition Joe said:
One thing to be aware of with many of these "lesser known" HYSA's is that often times their online infrastructure isn't up to snuff. Flagstar offers a really nice APY, but it's also pulling teeth to try and get money out (and their 2FA text authorization is all of 4 digits... 2FA aint secure as it is, a 4 digit one is laughable).


I made a call to Synchrony to have my C.D pulled on time since there's a window. It was relatively quick and easy but you can't do that request online.

My experiences with Synchrony have been really good
Reply Quote
Fenrir
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to idAg09 • 8:53a, 1/17/25
idAg09 said:
Anyone at Texas Capital Bank? They are showing 4.5% apy.

I am looking to change from Marcus since they are under 4% now


Is that a CD or a money market?
Reply Quote
Refresh
Page 1 of 1
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.