Best High Yield Savings Account

[Anonymous]

I have $1000 set aside as an emergency fund (not a lot I know - I don't make as much as you folks!) in a high yield savings account that earns an interest of 0.74% each month. That is Capital One 360, formerly ING Direct. I've been reading about Synchrony Bank, which has a high yield savings rate of 1%, and am sorely tempted to just close my Capital One 360 account and move everything to Synchrony. As far as I can tell, it's fee-free as long as you maintain a minimum balance of $50?

Is there any catch I'm not seeing? Anyone here bank with Synchrony?

[Anonymous]

I don't know about Synchrony, but Cardinal bank (a local brick and mortar bank) will give you 1% on a checking account with atm reimbursement and deposit by phone.

[Anonymous]

It's not worth switching. You're talking about a difference of about $3.00 per year with a $1000 balance.

[Anonymous]

Anonymous wrote:I have $1000 set aside as an emergency fund (not a lot I know - I don't make as much as you folks!) in a high yield savings account that earns an interest of 0.74% each month. That is Capital One 360, formerly ING Direct. I've been reading about Synchrony Bank, which has a high yield savings rate of 1%, and am sorely tempted to just close my Capital One 360 account and move everything to Synchrony. As far as I can tell, it's fee-free as long as you maintain a minimum balance of $50?

Is there any catch I'm not seeing? Anyone here bank with Synchrony?

You don't earn 0.74% each month. That's likely your annual yield. 0.74% per month is close to 10% per year with compounding. If you're getting that (when US Treasuries pay 0.25% for a year) then I will pay you $1000 per month to invest for me.