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What isn’t the bank doing for me that is in need of “disruption”? High Yield Savings Accounts? Amex offers a HYSA that is 3.8% vs LendingClubs 4.5%. How many

What isn’t the bank doing for me that is in need of “disruption”? High Yield Savings Accounts? Amex offers a HYSA that is 3.8% vs LendingClubs 4.5%. How many people have enough money in savings to make the difference worthwhile and make them willing to trust a non traditional bank? I have a year’s worth of expenses in mine (in addition to retirement savings) and I wouldn’t even bother. My bank is there to accept my money and let me pay stuff with it.

hansvm 2y ago
In the $5k-$10k savings range, you can also average 4.5% just by switching banks every year and taking advantage of sign-up bonuses. With a spouse and the referral bonus, the break-even cap goes up to $15k-$30k. Everything is FDIC-insured the whole time. I'll wager that under $5k in savings, the $35/yr difference between those two account types might probably doesn't matter in the slightest. That opinion is colored by a couple of these neobanks "losing" thousands of my dollars for months at a time during transfers, the prospect of which seems much more dangerous to somebody with limited savings and likely only one bank. Above $30k, you can easily and cheaply get a medium-touch experience with a company like Merrill Lynch (who themselves offer 4.2% even in zero-risk (outside of bankruptcy) accounts) and should maybe start looking at moving some of that out of a traditional savings account anyway.
dylan604 2y ago
> What isn’t the bank doing for me that is in need of “disruption”? Why is there still a hold for check deposits? Why do we still have banker's hours and business days for transactions? There are plenty of ways banks could be improved
- scarface_74 2y ago
  What type of transactions do you need to make outside of business hours that you can’t do electronically? And who actually deals with physical checks? Even the various contractors I used when preparing my home for sell took some form of electronic payment
  - dylan604 2y ago
    if i transfer money from one bank's account to another, it takes minimum of 48 hours if I make the request before 3pm cutoff time. Day 1, the transfer request is made at 1pm. Day 2, the money is no longer available in the sending account yet not in the receiving account. Day 3, the money is available in the receiving account. If I do it after 3pm, the request is not placed until Day 2. Why? WTF does a computer have a cutoff time? Does it go home and cook dinner for the family and do homework with the kids? >took some form of electronic payment These are nothing but electronic requests. No human needs to be involved, yet here we are. But sure, let's go ahead and argue like I don't have valid issues because you seem to not have any.
    - scarface_74 2y ago
      Zelle is run by the banks and transfers are instant and free. https://www.zellepay.com/faq/how-long-does-it-take-receive-money-zelle https://www.zellepay.com/faq/how-long-does-it-take-receive-m...
      - dylan604 2y ago
        [flagged]
        scarface_74 2y ago
        You’re right, these are the only banks that support Zelle https://www.zellepay.com/get-started https://www.zellepay.com/get-started
        dylan604 2y ago
        i hope you get paid for all of your shilling
        scarface_74 2y ago
        You just can’t admit you are wrong can you? Zelle is free, supported by almost every bank in the US - I’m sure you will find one obscure credit union in East MiddleOfNowhere South Dakota who doesn’t support it - and it’s instant
dutchbookmaker 2y ago
Banking already has been disrupted too. It is so easy to move money around now there is no reason to keep that much in savings. It is crazy how easy it is to move money from a savings account to a brokerage account and buy a tbill in 2025 vs 1990. Retail banking has really been stripped to its absolute bare essentials. There is no growth in banking in the US other than growth by acquisition. I can't think of a worse investment than a bank startup.
joshstrange 2y ago
I love HYSA, I made a sizable chunk on the interest and switching banks for the best rate is normally only a few steps. Right now I'm moving my savings from One Finance (3.75%) to Barclay (4.25%) because One dropped their rates (from 4.5% IIRC) and I'll make ~$40 more a month from the switch. It's not a ton of money but it's not nothing and it's dead simple for me to move the money.

hansvm 2y ago

In the $5k-$10k savings range, you can also average 4.5% just by switching banks every year and taking advantage of sign-up bonuses. With a spouse and the referral bonus, the break-even cap goes up to $15k-$30k. Everything is FDIC-insured the whole time. I'll wager that under $5k in savings, the $35/yr difference between those two account types might probably doesn't matter in the slightest. That opinion is colored by a couple of these neobanks "losing" thousands of my dollars for months at a time during transfers, the prospect of which seems much more dangerous to somebody with limited savings and likely only one bank. Above $30k, you can easily and cheaply get a medium-touch experience with a company like Merrill Lynch (who themselves offer 4.2% even in zero-risk (outside of bankruptcy) accounts) and should maybe start looking at moving some of that out of a traditional savings account anyway.

dylan604 2y ago

> What isn’t the bank doing for me that is in need of “disruption”? Why is there still a hold for check deposits? Why do we still have banker's hours and business days for transactions? There are plenty of ways banks could be improved

scarface_74 2y ago
What type of transactions do you need to make outside of business hours that you can’t do electronically? And who actually deals with physical checks? Even the various contractors I used when preparing my home for sell took some form of electronic payment
- dylan604 2y ago
  if i transfer money from one bank's account to another, it takes minimum of 48 hours if I make the request before 3pm cutoff time. Day 1, the transfer request is made at 1pm. Day 2, the money is no longer available in the sending account yet not in the receiving account. Day 3, the money is available in the receiving account. If I do it after 3pm, the request is not placed until Day 2. Why? WTF does a computer have a cutoff time? Does it go home and cook dinner for the family and do homework with the kids? >took some form of electronic payment These are nothing but electronic requests. No human needs to be involved, yet here we are. But sure, let's go ahead and argue like I don't have valid issues because you seem to not have any.
  - scarface_74 2y ago
    Zelle is run by the banks and transfers are instant and free. https://www.zellepay.com/faq/how-long-does-it-take-receive-money-zelle https://www.zellepay.com/faq/how-long-does-it-take-receive-m...
    - dylan604 2y ago
      [flagged]
      - scarface_74 2y ago
        You’re right, these are the only banks that support Zelle https://www.zellepay.com/get-started https://www.zellepay.com/get-started
        dylan604 2y ago
        i hope you get paid for all of your shilling
        scarface_74 2y ago
        You just can’t admit you are wrong can you? Zelle is free, supported by almost every bank in the US - I’m sure you will find one obscure credit union in East MiddleOfNowhere South Dakota who doesn’t support it - and it’s instant

dutchbookmaker 2y ago

Banking already has been disrupted too. It is so easy to move money around now there is no reason to keep that much in savings. It is crazy how easy it is to move money from a savings account to a brokerage account and buy a tbill in 2025 vs 1990. Retail banking has really been stripped to its absolute bare essentials. There is no growth in banking in the US other than growth by acquisition. I can't think of a worse investment than a bank startup.

joshstrange 2y ago

I love HYSA, I made a sizable chunk on the interest and switching banks for the best rate is normally only a few steps. Right now I'm moving my savings from One Finance (3.75%) to Barclay (4.25%) because One dropped their rates (from 4.5% IIRC) and I'll make ~$40 more a month from the switch. It's not a ton of money but it's not nothing and it's dead simple for me to move the money.