HYSA recommendations?

[Lewey24]

I went with Ally, so currently at 3.6%. I know rates are slightly higher elsewhere, but I wanted a bank that has good brokerage accounts too (Ally checks that box), and a good app, and good options for getting money in/out with little hassle. Ally’s been fine for me so far.

Second this, Ally is a good online bank with a good app.

 

[1100011CS]

Capital one 360 savings is giving me 3.3%

Capital one is at 3.4 right now

 

[iastatehunter]

I moved mine to Vanguard Cash Plus (targeted offer since its early in its implementation. Currently at 4.1%. Not sure if it is widely available yet.

 

[ianoconnor]

Started a 3mo TBill ladder about a month ago on Fidelity with a chunk of our E fund. Paying 1%+ more than the rest we have at Ally.

 

[cyfan21]

Capital one is at 3.4 right now

Did you see there 5% interest rate 11 month cd?

 

[SCNCY]

Second this, Ally is a good online bank with a good app.

I’m also an ally user. Their rates where higher when others were lower. Looks like their lower while others are higher now.

For the most part, I’d try and find a bank that generally has higher rates. I’m not a fan of changing banks over stuff like that.

 

[ClonerJams]

Please keep deposits under the FDIC limit if you are using a bank that pays well above the average rate of savings.. there is a reason they are paying higher rates and in the event of a run like Friday. You'll be screwed

You're right on the FDIC limit (also make sure wherever you keep your money is FDIC insured), but the main reason rates are higher with these online savings accounts is because there isn't any overhead with branches so they can offer better rates with lower overhead costs.

 

[SCNCY]

Started a 3mo TBill ladder about a month ago on Fidelity with a chunk of our E fund. Paying 1%+ more than the rest we have at Ally.

Do you have a good learning source on how to do this? Once interest rates stabilize, I may be interested in doing some bond or treasures bill investment.

 

[ianoconnor]

Do you have a good learning source on how to do this? Once interest rates stabilize, I may be interested in doing some bond or treasures bill investment.

Here's one specifically on the mechanics of buying on Fidelity:


There are a ton of YouTube resources on TBill ladders. I found this 'Diamond NestEgg' lady pretty detailed and easy to follow:


Another solid one:

 

[BCClone]

I bank locally because they give back to the community in terms of employment, funding local businesses and sponsoring local events. Seems more important to me than a fraction of a percent (which does or does not get eaten up by the fees some of the big boys charge), but that's just me and my rural thinking. Our local banks also provide free accounts for non-profits. Not sure you see that elsewhere, and one of the invisible "perks" of living out in these here Iowa sticks.

Your call where to bank, of course, but it's also wise not to put all your shekels in the same mattress.

You can get many of the same yields people are posting here by going to your local investment rep. Dollar for dollar they blow away what local banks pump into the community (former loan officer here). You get a bigger community return along with about 5x the interest return (which you can then donate the extra to local charity also). Local banks bang the community return drum because they don’t really have too much to stand on, while not returning as much to the community as they like to say.

 

[Pat]

I bank locally because they give back to the community in terms of employment, funding local businesses and sponsoring local events. Seems more important to me than a fraction of a percent (which does or does not get eaten up by the fees some of the big boys charge), but that's just me and my rural thinking. Our local banks also provide free accounts for non-profits. Not sure you see that elsewhere, and one of the invisible "perks" of living out in these here Iowa sticks.

Your call where to bank, of course, but it's also wise not to put all your shekels in the same mattress.

Found the banker!

I kid, of course, but do ‘local’ banks exist any more? And it’s not fractions of a percent with the online banks, it is over a percent difference on savings accounts right now.

 

[Big Daddy Kang]

You can get many of the same yields people are posting here by going to your local investment rep. Dollar for dollar they blow away what local banks pump into the community (former loan officer here). You get a bigger community return along with about 5x the interest return (which you can then donate the extra to local charity also). Local banks bang the community return drum because they don’t really have too much to stand on, while not returning as much to the community as they like to say.

local investment rep?

 

[BCClone]

local investment rep?

Ones who specialize in investments. Some insurance places also have them. I know State Farm even had a financial branch at times and had savings accounts that were close to online stuff.

 

[pourcyne]

Found the banker!

I kid, of course, but do ‘local’ banks exist any more? And it’s not fractions of a percent with the online banks, it is over a percent difference on savings accounts right now.

Yes, rural banks right cheer in the Heartland. Three banks in the county seat - one entirely local, one based in Southeast Iowa with branches in various communities, and only one an (inter)national chain - BNP Paribas) and a credit union branch whose HQ is in the next county.

Feels good not to have a sketchy Wells Fargo lurking in the shadows.

 

[pourcyne]

You can get many of the same yields people are posting here by going to your local investment rep. Dollar for dollar they blow away what local banks pump into the community (former loan officer here). You get a bigger community return along with about 5x the interest return (which you can then donate the extra to local charity also). Local banks bang the community return drum because they don’t really have too much to stand on, while not returning as much to the community as they like to say.

Disagree 100%. If you want the big return, you have to have the big bucks to start with.

My local banks never hound me for transfer fees, or any other kind of load, unlike one of the guy who manages some of my investments. (boy, I hate that kid, but too lazy to look elsewhere, and those funds are back to making money now. Thanks, Biden.)

Also do a lot of investing with national companies online. They don't bug me, either, unlike that %^& Junior Barnes. Oy.

A lot of money here goes to boost local agriculture and local businesses. That's a good thing, and they DO support the community, no matter what you may think you know about them.

No, not Jimmy Stewart, but almost.

 

[matclone]

Do not buy Ibonds here.
You’re looking at 6 months at 6.89 percent where it likely resets to 2-3 percent. Add in 5 year holding period otherwise a 3 month penalty.
Buy Tbills instead.

A five year holding period? I think it's only 12 months. And how do you know what it will reset to?

 

[cycloneML]

Silicon Valley Bank has good rates.

 

[matclone]

HYSA = high yield savings account (I presume).

I've had one with American Express for several years. No fuss and liquid. I can (and have) transferred funds in a day or two. Rates vary but currently at 3.45%.

It's ridiculous that many banks pay little to nothing on savings accounts.

 

[1100011CS]

Ys

Did you see there 5% interest rate 11 month cd?

Yeah, I just bought a 6 month about a month ago

 

[cycfan1]

A five year holding period? I think it's only 12 months. And how do you know what it will reset to?

You have to hold 5 years or you pay a 3 month penalty. 12 months is the minimum hold time, but you’d pay penalty before 5 years.

The rate is not know, just guess from a few financial firms I follow that have some formula off Cpi. They have been pretty spot on for the last rate adjustments.