Alternative to high yield savings account

[Anonymous]

I’ve banked with Bank of America for years and have a checking and savings account with them. I have an IRA, 401k, and 529 with another institution.

BOA is great with a lot of things except they don’t have a high yield savings option. I currently have $100k in my savings account not accruing much interest. I’d prefer to keep banking with BOA and am curious if a CD is advisable these days?

I’m not very risky and don’t have a head for or interest in “real” investing via playing stocks, etc. The savings is my real nest egg so I want to have an option to withdraw at least a portion if needed sans penalty.

Any insights into what may work best for my situation?

[Anonymous]

CDs at BoA also have near zero rates. There is no cash option at BoA that pays higher than near zero. Merril may have a money marker fund that pays decently but that is an investment nit an FDIC insured bank account. When we used BoA we had a separate HYSA with an online bank.

[Anonymous]

Merril Edge is connected to BoA. Their preferred deposit is like a hysa.

[Anonymous]

Just set up an account with Ally bank and put it there. BofA is playing you like a violin at tge saps’ convention.

[Anonymous]

I get it. I am in a similar boat in terms of being anxious about real “investing” but I’m with cap one and they do have HYSA and had good rate on cds. My parents are just like you with BOA. I convinced my mom to put some in cap one cd that was 5% and she opened a discover savings that was 4% plus. Def considering moving to. HYSA. BOAs low interest rates are pitiful.

[Anonymous]

Merrill edge preferred deposit rate is 5.01% . It’s like HYSA. It’s a good option

[Anonymous]

If you want to stick with a brick & mortar bank, get a Capital One savings account. But yes, you could also do Merrill Lynch which is associated with Bank of America.

[Anonymous]

6 month t-bills with ~5.5 direct coupon yield (slightly less to the retail buyer) is what we are doing. We also have some sort of Chase preferred MM that is just shy of 5% and can access at any time without any penalty. Getting ready to move some of that into t-bills to form a ladder.

[Anonymous]

There are so many savings options that still provide you fast access to your cash. You're currently pissing away $5K per year.

[Anonymous]

Anonymous wrote:Just set up an account with Ally bank and put it there. BofA is playing you like a violin at tge saps’ convention.

+1

Ally is the best out there. Simple and easy to use. Also easy to reach a live person if you have questions. Their MM is great as well as their No-Penalty CDs or 9-18 month CDs.

[Anonymous]

You don't play stocks, you invest in stock market. Hundred thousand in stock market can be life changing. It's not like it's going to disappear.
So many HYSA's out there. Rates won't last forever. You can close the account later.
BoA is the worst.

[Anonymous]

We use USAA and are so disappointed with their interest rates on savings account. Since we already have a brokerage with Schwab, we’ve just started moving money into SWVXX. The current 7-day yield is 5.24%.

[Anonymous]

Thanks from OP. There is a lot to look into here.

I think moving maybe half into a HYSA with Merrill or Ally or Capital One is the way to go for me.

[Anonymous]

OP, there are lots of online saving account that are reputable paying between four and five percents.

Ally, Marcus Goldman, Barclays etc.

[Anonymous]

Anonymous wrote:Thanks from OP. There is a lot to look into here.

I think moving maybe half into a HYSA with Merrill or Ally or Capital One is the way to go for me.

No, you should move all of it that you don’t need for cashflow purposes. Each $10k you keep in BoA is costing you $500 a year in foregone interest.