Rec your high yield savings account

[Anonymous]

Hi there,

I'm definitely not leveraging finances as well as I could.

I'm doing ok with retirement savings (401k and aggressive Vanguard IRA) and college savings (big monthly pmts to a 529), but I have $20k just sitting in a basic Citibank savings account.

Since all my banking is currently via Citi, I could just move that balance to their high yield savings account offering 4.3% interest. My accounts would stay all in one place.

But I'm seeing that some online banks offer more than 5% interest. Would you move that balance (and future savings deposits) to one of those higher interest online banks - and if so which one?

Is it a hassle having to deal with transferring between the two banking entities?

What would you do?

Thank you for and advice...

[Anonymous]

Bump

[Anonymous]

It’s worth a lot to me to streamline.

[Anonymous]

Capital one. I'm looking for another since we are at the $250k cap

[Anonymous]

Betterment

[Anonymous]

Happy with Ally after switching from Marcus.

[Anonymous]

Anonymous wrote:Capital one. I'm looking for another since we are at the $250k cap

You say We. If two people on the account I believe it's $250k for each?

[Anonymous]

Wealthfront. Great app and easy to use.

[Anonymous]

Anonymous wrote:Capital one. I'm looking for another since we are at the $250k cap

The rates at Cap One and Ally are about the same as Citi. If OP is going to open an account, they should get at least 5%. I have Bread Financial (Comity) and it has been good (app is good, no trouble transferring funds) and CIT Bank. Both are about 5%. You can search on bankrate to find others.

Just be sure to watch the rates over time since they are likely to fall soon. Also, read the fine print to see what the maximum daily transfers out are. Some are $10,000 per day. Not the end of the would, but something to be aware of.

If you have a Fidelity or vanguard account, you could just use your settlement account. Most earn over 5%. They are not FDIC insured, but mostly invest in US treasuries.

[Anonymous]

Many hysas pay less than settlement accounts with investment banks. My hysa sits empty while Robinhood settlement account has 5% plus some bonus. I don't expect people with a lot of money to use RH though.
The rates should go down soon, so I wouldn't complicate adding additional account just for a small interest increase.
I used RH for small money, but the ease of use and how much I learned from bying and selling- it is about to overtake my Fidelity account total. But that's ofcourse very individual.
First time very I see and experienced how important ease of use is. I'm well aware the risks, but then again, Fidelity was down the other day and not RH.
Webull and I didn't get along at all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Capital one. I'm looking for another since we are at the $250k cap

You say We. If two people on the account I believe it's $250k for each?

NP- It is.

[Anonymous]

I don't bother with high yield savings accounts and just put excess cash in money market fund with Fidelity. The yield is 4.96% and it is more convenient to use my existing Fidelity account than to make a new bank account. Not worth chasing a marginally higher yields especially if you typically keep cash amounts under the FDIC limit. If you are above the FDIC 250k limit, it quickly becomes burdensome to maintain multiple bank accounts each with around 250k in them. IMO, too much effort.

[Anonymous]

We're using Vanguard money market funds to get >5%.

[Anonymous]

yield . inc

[Anonymous]

Don’t use Marcus despite the recommendations - something is going on there. I am just using my capital one 360 performance easy access no fees I trust them even if not the 5%.