2 ms·

No because rates aren't 1-2% in a typical savings account from a standard bank. If you want 1-2% interest you'll have to have a "high interest savings account"

by astura 8y ago

No because rates aren't 1-2% in a typical savings account from a standard bank. If you want 1-2% interest you'll have to have a "high interest savings account" which have historically been online-only offerings and most people really can't be bothered to open up a new account and manage multiple accounts and do the transfers. For example, if you had $20,000 in a Chase savings account AND had a "Premier Relationship" with them then you'd get an interest rate of 0.04%, or a whopping $8 in interest for the year. https://www.chase.com/personal/savings/interest-savings/interest-rates https://www.chase.com/personal/savings/interest-savings/inte... Its worth noting that rates have gone up significantly in the last year and a half, at one point it got to the point where checking accounts and savings accounts had the same interest rates at many banks and many people stopped using savings accounts entirely at that point.

ryandrake 8y ago
Online makes it even easier. I opened a >2.5% 12 mo CD online and it took an hour max. No pre-existing relationship with the bank. The high yield savings accounts tend to have a few strings attached but nothing I’d consider a barrier to someone with at least a job that offers direct deposit. The biggest barrier to getting a 1090-INT is not the bank or the APR. It is having a low income and not enough money to save.
- astura 8y ago
  Of course, I'm not arguing its difficult or there are any barriers, I know its easy. However, I literally can't convince a single person beyond my sister to open up a high interest savings account. People just don't want to be bothered. Me? I currently have fifteen (15) bank accounts. Chasing those sign up bonuses.
  - dragonwriter 8y ago
    > However, I literally can't convince a single person beyond my sister to open up a high interest savings account. People just don't want to be bothered. High-interest savings account are crappy as investments, and I'd you have to go to a different institution (or use a CD, or both) lack the frictionless (and instant) connection to primary checking that is generally the reason to use a savings account vs. a decent investment vehicle.
    - Consultant32452 8y ago
      I can't recommend online banking enough. Fidelity and Schwab both have excellent offerings. At least through Fidelity I can buy high interest CDs for multiple banks without having to deal with the hassle you're referring to. Free checking with refunds for any ATM fees anywhere. Easily move money from checking to investment accounts and back. Open new account online within minutes. I have a car account where I set aside money for my next car, an emergency fund, a college savings fund (529), an IRA, and others. Ten accounts in all, all under one convenient interface. They even slurp in the data from my workplace 401k at a different bank so I can track that in the same place.

by astura 8y ago

ryandrake 8y ago

Online makes it even easier. I opened a >2.5% 12 mo CD online and it took an hour max. No pre-existing relationship with the bank. The high yield savings accounts tend to have a few strings attached but nothing I’d consider a barrier to someone with at least a job that offers direct deposit. The biggest barrier to getting a 1090-INT is not the bank or the APR. It is having a low income and not enough money to save.

astura 8y ago
Of course, I'm not arguing its difficult or there are any barriers, I know its easy. However, I literally can't convince a single person beyond my sister to open up a high interest savings account. People just don't want to be bothered. Me? I currently have fifteen (15) bank accounts. Chasing those sign up bonuses.
- dragonwriter 8y ago
  > However, I literally can't convince a single person beyond my sister to open up a high interest savings account. People just don't want to be bothered. High-interest savings account are crappy as investments, and I'd you have to go to a different institution (or use a CD, or both) lack the frictionless (and instant) connection to primary checking that is generally the reason to use a savings account vs. a decent investment vehicle.
  - Consultant32452 8y ago
    I can't recommend online banking enough. Fidelity and Schwab both have excellent offerings. At least through Fidelity I can buy high interest CDs for multiple banks without having to deal with the hassle you're referring to. Free checking with refunds for any ATM fees anywhere. Easily move money from checking to investment accounts and back. Open new account online within minutes. I have a car account where I set aside money for my next car, an emergency fund, a college savings fund (529), an IRA, and others. Ten accounts in all, all under one convenient interface. They even slurp in the data from my workplace 401k at a different bank so I can track that in the same place.