3 ms·

Savings accounts are really only a 'mindset' thing, they serve no real good purpose. If you have a an emergency fund, why not put it into a high yield checking

by axaxs 8y ago

Savings accounts are really only a 'mindset' thing, they serve no real good purpose. If you have a an emergency fund, why not put it into a high yield checking account? It's not hard to get 3-4% APY on $25k, which is far more than you'll get from a savings account. And if you have far more than that, you'd be losing money by having it sit around not getting interest.

jonknee 8y ago
Please link to these 3-4% APY on $25k checking accounts that you speak of.
- axaxs 8y ago
  https://www.depositaccounts.com/checking/reward-checking-accounts.html https://www.depositaccounts.com/checking/reward-checking-acc... is a good start. You can also just look for Kasasa in your area. Most have some requirements, like 10 debit purchases a month. A lot of people just buy amazon refills 10 times. For no requirements, Memory Bank does 1.6% up to 250k.
  - jonknee 8y ago
    Ah, you meant $25k as a limit because they give rewards and use a high rate for low balances as a technique to get new accounts (and the fees they get from you using the account). Still, I only see one offering above 3% and they pay 0.15% for anything over $25k. I have a savings account at Marcus and it's 1.7% without any minimum, a high $1M max and no goofy rules to jump through.
    - axaxs 8y ago
      Correct, and it's location dependent. Typically, there are no fees associated with these accounts. Many have multiple accounts at the same institution, or spread. From my minimal research, it seems you should be able to say, have 25K in each Consumers Credit Union, and Heritage bank, and effectively earn about 4% on $50k (NOTE: I'm not endorsing either of these institutions, do your own research). Though with requirements attached for each, which may or may not be worth the opportunity cost to you. The 1.6-1.7% rate seems to be the going best for no requirements involved.

by axaxs 8y ago

jonknee 8y ago

Please link to these 3-4% APY on $25k checking accounts that you speak of.

axaxs 8y ago
https://www.depositaccounts.com/checking/reward-checking-accounts.html https://www.depositaccounts.com/checking/reward-checking-acc... is a good start. You can also just look for Kasasa in your area. Most have some requirements, like 10 debit purchases a month. A lot of people just buy amazon refills 10 times. For no requirements, Memory Bank does 1.6% up to 250k.
- jonknee 8y ago
  Ah, you meant $25k as a limit because they give rewards and use a high rate for low balances as a technique to get new accounts (and the fees they get from you using the account). Still, I only see one offering above 3% and they pay 0.15% for anything over $25k. I have a savings account at Marcus and it's 1.7% without any minimum, a high $1M max and no goofy rules to jump through.
  - axaxs 8y ago
    Correct, and it's location dependent. Typically, there are no fees associated with these accounts. Many have multiple accounts at the same institution, or spread. From my minimal research, it seems you should be able to say, have 25K in each Consumers Credit Union, and Heritage bank, and effectively earn about 4% on $50k (NOTE: I'm not endorsing either of these institutions, do your own research). Though with requirements attached for each, which may or may not be worth the opportunity cost to you. The 1.6-1.7% rate seems to be the going best for no requirements involved.