How fast might high yield savings rate go up after fed rate hike?

[Anonymous]

We're going to open a high yield savings account soon. I know the fed is expected to hike rates again - how quickly might banks start to offer higher rate accounts?

[Anonymous]

Who knows? And why does it matter? Open your account and your rate will float up with the market.

I will tell you anecdotally that our Marcus account has had five rate increases since mid-August and seven since July 1 (1.20% to 2.50% now)

[Anonymous]

CapOne at 3%. I said WTF?

[Anonymous]

Anonymous wrote:Who knows? And why does it matter? Open your account and your rate will float up with the market.

I will tell you anecdotally that our Marcus account has had five rate increases since mid-August and seven since July 1 (1.20% to 2.50% now)

Well thanks - I am not financialy savvy, I thought that our rate is set when we open the account, but it will be a variable rate?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Who knows? And why does it matter? Open your account and your rate will float up with the market.

I will tell you anecdotally that our Marcus account has had five rate increases since mid-August and seven since July 1 (1.20% to 2.50% now)

Well thanks - I am not financialy savvy, I thought that our rate is set when we open the account, but it will be a variable rate?

it changes as interest rates goes up/down. ally is 2.35% right now, certain capone accounts offer 3%. i moved money from ally to capone this morning

[Anonymous]

Just got a Cap One 12 month CD at 4%.

[Anonymous]

Anonymous wrote:Just got a Cap One 12 month CD at 4%.

wow, AmeX saving is just 2.5% or something. I'm gonna go open a CD with capone. Thanks!

[Anonymous]

Anonymous wrote:Just got a Cap One 12 month CD at 4%.

Nice! I will take a look at this.

Discover has gone from ~0.4 to 2.35 over the course of the year.

[Anonymous]

Why would you want 4% CD? No end in sight for inflation

[Anonymous]

Anonymous wrote:Why would you want 4% CD? No end in sight for inflation

Oh do tell what is beating inflation? Stocks keep dropping and are likely to drop more...real estate is cratering...

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why would you want 4% CD? No end in sight for inflation

Oh do tell what is beating inflation? Stocks keep dropping and are likely to drop more...real estate is cratering...

you mean what's beating 4%... if fed raise another .75 this week, your savings earning will be pretty close to it. not to mention ibond

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why would you want 4% CD? No end in sight for inflation

Oh do tell what is beating inflation? Stocks keep dropping and are likely to drop more...real estate is cratering...

you mean what's beating 4%... if fed raise another .75 this week, your savings earning will be pretty close to it. not to mention ibond

plus this is pretty good time to buy stocks if you are playing the long game

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why would you want 4% CD? No end in sight for inflation

Oh do tell what is beating inflation? Stocks keep dropping and are likely to drop more...real estate is cratering...

you mean what's beating 4%... if fed raise another .75 this week, your savings earning will be pretty close to it. not to mention ibond

plus this is pretty good time to buy stocks if you are playing the long game

At this point, why lock up money at 4%. Do you think by November 1st, 2023 the markets will be 4% higher or more? Odds are, yes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why would you want 4% CD? No end in sight for inflation

Oh do tell what is beating inflation? Stocks keep dropping and are likely to drop more...real estate is cratering...

you mean what's beating 4%... if fed raise another .75 this week, your savings earning will be pretty close to it. not to mention ibond

plus this is pretty good time to buy stocks if you are playing the long game

At this point, why lock up money at 4%. Do you think by November 1st, 2023 the markets will be 4% higher or more? Odds are, yes.

yes that was my point

[Anonymous]

Anonymous wrote:Who knows? And why does it matter? Open your account and your rate will float up with the market.

I will tell you anecdotally that our Marcus account has had five rate increases since mid-August and seven since July 1 (1.20% to 2.50% now)

Marcus is lagging these days. DollarSavingsDirect is a legit FDIC online bank offering 3.5% on savings. Two year treasuries are at 4.5%. I'm winding down my Marcus account as neither their savings nor their CD rates are super competitive.