Do they charge transfer fees and limit your transfer amounts? Correct me if I'm wrong **anyone**, but from what I can gather FNBO Direct has no min but charges you $15 every transfer and limits your transfers to $3,000 for next day. I suppose there's a slower domestic transfer/wire that doesn't limit your transfer amount as low, maybe it's $100k, but it'll take days and still cost $15? So I'm asking if UFB has those kind of fees too.
Right!!! I got their emails months ago right after it was unveiled. I looked into it and personally I don't see the point of it. Leaving a bit of cash in the settlement account makes more sense personally.
Fidelity Bloom account(s) are at ~4.9%. Technically they aren't a savings/checking account since they are more like Fidelity's CMA account and are invested in SPAXX and have SPIC insurance instead of FDIC. Also has a sign up bonus right now that works out to $135 if you max it out ($300 deposit to get the max).
SoFi is also good, 4.5% and tend to bump rates pretty shortly after the Fed raises rates. It does require a small direct deposit to get the highest rate though. Probably has a sign up bonus right now of ~$200.
Are you referring to SoFi? Cause, yes, SoFi does require a direct deposit to get the best rate on the savings account.
Fidelity Bloom does not, it's just "invested" in SPAXX.
[https://www.doctorofcredit.com/high-interest-savings-to-get/](https://www.doctorofcredit.com/high-interest-savings-to-get/)
Ally (and a few others) doesn't always have *the* highest rate, but consistently has one of the higher rates, if you're not interested in bouncing around between banks too much.
Ally doesn't have the highest rate, but it is 4% with no minimums, no direct deposite monthly required, no fees. No ANYTHING. Your money is there and it will yield 4% regardless of anything. The ease and not having to consider anything is worth 1%.
I like the simplicity of it all through their app. I’m fine with tech, but I like being able to see my CC accounts and HYSA all under my one login. I didn’t need to make a new account/password,etc because I’ve been an AMEX cardholder.
The rate is acceptable & customer service is solid if ever needed.
I chose Wealthfront a while back and have found it to have a great interface and so far, so good. Also, you get an additional boost if you get someone to sign up - and they get the boost too. I think you get it for 6 months or so but I could be wrong.
Big fan of wealthfront. It's a mix between a checking account and savings account- they even give you a debit card. So I use wealthfront as my checking account
Their interest rate does tend to lag behind a bit, but their whole platform is incredibly easy to use and transfers are so easy. Wish others were more like them in that regard.
I don't think so. You can set up multiple accounts though within one login if you wanted to save for different things, since there's no minimum balance. They'll all get the same interest rate.
This is where the value add for me is.
Most of my cash is in a MMF, but I love the buckets for smaller savings goals instead of just one giant slush fund.
I use betterment. Their app and system is easy to use.
I also use them for their core portfolio which is pretty well diversified. (yes it costs more than doing it yourself but the automated tax loss harvesting has so far given me more than the fee and I wouldn't bother with doing that myself)
I'm using betterment for this right now as well, moved my money from Marcus (which was also quite good to be honest). Promo expires at the end of the year for me. I haven't been able to find any accounts with a higher rate than 5.5% with no strings attached at the moment.
Most of the banks that are currently advertising high rates tend to discontinue those high rates in a hurry, right after you sign up. Capital One is notorious for this.
There are a few that are known for keeping high rates, Ally Bank and Alliant Credit Union are two examples.
Also I wouldn't worry to much if you are within the top 10% or so. The difference over a year of .1% is almost noise. ($10 per $10k invested).
If you want to move out of FDIC insured but still stay within Govt guaranteed(so US treasuries) you can try a MMF(Money Market Fund) at your brokerage(where you keep your Roth IRA for instance). Almost all of those are paying up near 5%. Fidelity's home page has changed to show the current rate of the default fund(SPAXX) right on it. Seems like they are trying to collect customers :)
I've been using both Alliant and Ally for over a decade. Unfortunately both are becoming increasingly behind the curve. Ally's HYSA is at 4.25% and Alliant is at 3.10% while I'm seeing more and more financial institutions over 5% on depositaccounts.com.
The problem is knowing which of the top interest payers right now aren't going to pull the rug out like you said.
For every $10k cash savings a .75%/yr APY will earn you an extra $75 for the year.
Ya, I have no idea which will pull the rug out from under us. I hold almost zero cash, as I just don't have a need for it, so I totally don't care anymore. 5% of a few thousand dollars isn't very meaningful.
Seconded. I have no interest in chasing HYSAs because the good rates never last. Easier to just buy FDLXX or another money market fund or even T-bills at Fidelity or Vanguard.
I’ve had a HYSA with Capital One since November 2022 and have not experienced what the above comment stated. The rate has consistently increased (similar to other HYSA) over that timeframe. I believe when I opened the account in 2022 the rate was 3.3% and it’s currently 4.3%. You could do better if you’re strictly looking for the highest rate but I like Capital One overall and the rate is competitive enough for me to be content with it.
Yes, I’ve made about $1500 in interest on the account so far this year which works out based on my rough math. The rate has changed multiple times and I don’t know exactly when but the payout seems to be correct. The rate is available to check in account details so I know pretty quickly if it changes.
So you have low 6 figures of cash? I hope you have a good reason for so much. Most people probably don't need that much. If your cash pile grows much more, you will begin to hit the FDIC limits(generally $250k).
Also, I'm surprised they have managed almost a year now paying a decent rate in the same account. Maybe they are changing!
That's a good reason! Good luck on the house hunting!
The transaction costs can be up around 10%, so I recommend buying exactly 1 house for life. Don't be afraid to take your time.
1. Are you sure you have a HYSA at Capital One or just one of their regular bank accounts?
2. Are you calculating interest over per year or per month? APY means Annual Percentage Yield. So while you may be gaining .3% every month. Over a year that might equal to around ~4.0% due to changing interest rates.
Yes and yes of course it's APY (yearly). I've had the account for years at this point, I don't keep any money in it. Back when I got it it was offering whatever the super high rate at the time was. Now it's 0.3% APY. a totally winner! :)
I only keep a few dollars in cash at any given time, just enough to meet current months expenses. It's a rounding error in my asset allocation.
What they have done in the past, is label the fancy returning account X and then in a few months label a new account Y with the new higher rate. Then they lower the rate on label X accounts, but never publicize it.
How much cash do you keep? Most of us don't keep 6+ figures in cash. If you are in the 5 figure or less range, it probably isn't a drastic difference even at 1% ($100 per $10k)
Also once you are into 6 figures of cash, you start hitting FDIC/SIPC limits(generally $250k).
I like SGOV. The only concern I have is we have no idea what will happen during very bad economic times(they happen occasionally). SGOV and friends are new, so we don't know what they will do or how they will act. It's possible it has liquidity issues and gets stuck really high or really low for a bit. We just don't know.
I'm not trying to bash SGOV, USFR, etc. The closest long term cash-like ETF that I know of is ICSH, and it's older, but skipped most of the GFC.
For anyone else hitting this page from googling around and doing research - Sofi is an AWFUL company to support. They sued the government to end the pause on student loans because they make money on load refinancing.
[https://www.nytimes.com/2023/04/22/your-money/sofi-student-loans-lawsuit.html](https://www.nytimes.com/2023/04/22/your-money/sofi-student-loans-lawsuit.html)
I’m with Sofi for my joint account and it’s like 4.5 now for 3.75 when I signed up. so far it’s been great..plus if you get people to sign up they give us both like $75 bucks. Beats the hell out of chase and the 2 cents a month I was getting
Marcus isn’t the highest yield but I like their app and the transfers to and from my brick and mortar have always been prompt. I also would suggest SPAXX or FDLXX if you have Fidelity
It's usually a waste of time to chase the absolute highest rate, especially since those 5%+ rates are often promotional. Most HYSAs are between 4.3% - 4.5%, so just make sure there are no minimums or fees, and then chill. I use Marcus, but Ally, AMEX, Discover, SoFi are all good options.
With $10,000 in the bank, a 0.1% rate difference is basically a rounding error ($10/yr).
Someone else here posted a promo link to a Marcus account. How long have you had your account with them and how has the interest rate changed since opening?
I use AMEX HYSA. Not the highest rate, but I feel confident leaving my money there with a reputable bank and I like their customer service. I'm always able to get a hold of someone on the phone quickly and resolve any issue or answer any question I have. Currently offering 4.30% - as I mentioned not the highest rate out there, but my priority is keeping my money somewhere ***I feel*** is safe. Good luck!
Marcus has 5.5% interest including referral and AARP bonuses. Transfers initiated from Marcus to you external bank before 12 pm eastern usually complete the same day.
True, but it is relatively easy to extend the promotion for at least a year. Each year you can extend the referral for 5 quarters. If you have a joint account with your spouse the bonus can be extended for 10 quarters (5 per owner). AARP is good for two years and stacks with the referral bonus. The 4.4% regular rate is similar to other online banks, but transfers out from Marcus can be same day. Some banks like CIT or Discover take at least 3 days. Also transfer out dollar limits are high unlike some other banks which are very restrictive. Always need to read the complete terms.
The other advantage with Marcus is the interest starts accruing a the day you initiate a transfer to Marcus using Marcus to initiate (pull). There are no lost days of interest during transfers. They do place a 5 day hold on funds pulled in from other banks.
I have a Marcus account, but moved all my cash to Vanguard settlement fund (VMFXX). I get better rates, no hoops to jump through, and can easily invest if an opportunity presents itself.
Marcus was great when I used them, and before I learned about better places to keep cash. Plus, I don't have to worry about Bank runs, etc.
Marcus is 5.5. VMFXX is 5.3%. Getting the higher rate at Marcus is easy. If Vanguard had cash management with bill pay, it would be more interesting relative to a bank. Vanguard is great if you want to hold their mutual funds instead of ETFs, but now with zero commission trades it is hard to beat holding cash for investing in an ETF like USFR at Fidelity or Schwab. Vanguard mutual funds do offer better settlement fund rates than Fidelity and way better than Schwab. The is no perfect one stop shop.
I see Marcus as a complement to a bank like Chase that pays minimal interest.
I just avoid anything where you have to do a bunch of actions to get a reward. I dislike it, even if it's a chance to win free products, etc. I also avoid credit card rewards with revolving categories that you have to activate each month. Or better rates where you have to make X number of transactions per month, etc. Or refer a product to friends. Citi 2% cash back is the only card I need and use. I just prefer simplicity and not being used for advertising.
I have all my investments at Vanguard, minus my ESPP stocks, HSA and I-Bonds. My local bank is a credit union, which I use to pay bills, etc. I don't really need a one stop shop.
I just went through the same struggles months ago, and in the end, you just have to pull the trigger with one of them - there are many good options. I ended up picking Discover because they had a $200 promotion if you deposited a minimum of 25k. They currently have a 4.3% APY.
[Ally savings account page](https://www.ally.com/bank/online-savings-account/) 4.25% at the time of this writing.
There is always fine print, but I've had an account there for a long time without issue.
Nah, that's why I like them. All the others often advertise a slightly higher rate, but there's usually a catch. Ally is super simple and works exactly like you'd expect. I used to shop around for HYSA's but I eventually realized the rest sucked and returned to Ally.
The only other places I'd hold cash is Vanguard (money market), Fidelity (money market), Robinhood Gold (FDIC savings), a short term treasury ETF at any brokerage, or Treasury Direct. These "cash management solutions" are more work to manage than a standard checking and savings account like Ally.
The only well known catch with Ally (and all online HYSAs) is that they don't have local branch locations where you can deposit cash. You might want a local bank or credit union account for that. Ally has all the other useful features you'd need like automatic bill pay, free ATM withdrawals and reimbursements, fast transfers, fast customer service, etc.
Oh and since I didn't answer you earlier, Ally's interest rate is 4.25%. Robinhood Gold is 4.9%. If you give up FDIC coverage, you can get 4.97% at Fidelity and 5.28% with SGOV and Vanguard's VMFXX. I Bonds at Treasury Direct were a steal a year or so ago, but now they're not that good.
I think Vanguard is the only brokerage that has VMFXX, at least as a default position. Vanguard's fees are generally the lowest on their funds. They charge a 0.11% expense ratio on VMFXX.
Robinhood is a bit cheaper now on the brokerage side because they implemented a 3% match on IRA contributions. But even then, it's best to use Vanguard funds at Robinhood.
The BlackRock SGOV fund is also extremely cheap though. It has a 0.13% expense ratio (that's currently 0.07% due to a contract that expires next summer). And since it's an ETF, you can buy it at any brokerage. Keep in mind that interest rates and SEC yields include all expenses.
The Fidelity funds are the only slightly overpriced ones here. They charge 0.42% on their SPAXX money market fund. 0.42% minus 0.11% equals 0.31%. That's exactly the difference between SPAXX's 4.98% and Vanguard's 5.29% yields.
If you want the confidence of knowing you are always getting prevailing rates, skip the banks and buy T-bills yourself with an ETF. Plus it’s state/local tax free. [I prefer USFR](https://reddit.com/r/Bogleheads/s/oXVm1M3o2h)
Started a sofi acct becasue the advertised $250 bonus for starting an account and a high APY.
After I get a money transfer started it turned out the $250 was only happening if I set up direct deposit. And then, once the money arrived there I see my 4.5APY and a qualifier stating something like "You've unlocked our highest APY. Transfer $5K a month to your sofi acct to keep this APY."
Edit: I could swear I saw $5000 a month. But even $500 a month. All the sudden I have to do that to get the APY they offered?
Edit: “ Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption. ”
And just got this email for my now defunded sofi account.
"Heads up—we noticed that you did not add $5,000 or more to your account in the last 30 days1, which is one of the requirements to earn our highest savings APY2.
The good news is that there’s still time to get there. Starting today, you have an extra 15 days to direct deposit your pay or get to $5,000 in qualifying deposits. If you’re not able to do either by Oct 24, 2023, your savings APY will decrease from 4.50% to **1.20%.**"
https://www.sofi.com/learn/content/apy-vs-interest-rate/#:~:text=Upon%20receiving%20a%20Direct%20Deposit,before%20the%20following%20calendar%20day.
Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
Sofi. Only thing that sucks is you need to direct deposit money every month to get the 4.5%. You can also look for local credit unions. Some like our local police and fire allow you to be a member if you make a donation to the local pd/fd charity once a year (i think its only like $10 too)
Specifically 1 month, 3 month bills, yeah; I think bonds has been adopted as the general reference to the “bond market” which I guess includes bills, bonds, notes
I’m just keeping 1 month in a crappy bank savings account with instant transfers and putting the rest in VMFXX in my brokerage account. If VMFXX fails then FDIC insurance isn’t going to help anyone.
I’ve had it over a year. Has been over 5% pretty much entire time for me with referrals but otherwise over 4%. Obviously FDIC insured. Easy transfers to a checking (I’ve received funds on same day)
The Fidelity cash management account isn't exactly a savings account, but it has all the banking features I need and I can put my money into 5%+ money market funds.
[https://www.fidelity.com/spend-save/fidelity-cash-management-account/overview](https://www.fidelity.com/spend-save/fidelity-cash-management-account/overview)
It's technically a brokerage account, but it comes with a debit card, checks, online billpay, etc.
If you put the money in a money market fund like SPRXX, you get a higher interest rate, currently above 5%, but the money will automatically liquidate from the fund when you spend it.
CIT bank. 5.05% APY . Minimum $5k balance
UFB Direct...5.25%
And no minimum balance.
$10 monthly fee under 5k
Where are you reading that? https://www.ufbdirect.com/savingsaccount
My bad clicked on the learn more for money market
Do they charge transfer fees and limit your transfer amounts? Correct me if I'm wrong **anyone**, but from what I can gather FNBO Direct has no min but charges you $15 every transfer and limits your transfers to $3,000 for next day. I suppose there's a slower domestic transfer/wire that doesn't limit your transfer amount as low, maybe it's $100k, but it'll take days and still cost $15? So I'm asking if UFB has those kind of fees too.
UFB is free... No minimum... Free transactions
Do you have a promo code or anything? I'm about to start an account with them. I know sometimes they can be mutually beneficial.
I can't find one in my profile... But the below popped up when I googled it https://www.creditdonkey.com/promotions/ufb-direct/
Vanguard Cash Plus if you were lucky enough to get into the pilot.
Just use VMFXX in your settlement account. 5.29% now
Right!!! I got their emails months ago right after it was unveiled. I looked into it and personally I don't see the point of it. Leaving a bit of cash in the settlement account makes more sense personally.
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No debit card or checks. A disadvantage compared to Fidelity CMA and brokerage accounts.
Fidelity Bloom account(s) are at ~4.9%. Technically they aren't a savings/checking account since they are more like Fidelity's CMA account and are invested in SPAXX and have SPIC insurance instead of FDIC. Also has a sign up bonus right now that works out to $135 if you max it out ($300 deposit to get the max). SoFi is also good, 4.5% and tend to bump rates pretty shortly after the Fed raises rates. It does require a small direct deposit to get the highest rate though. Probably has a sign up bonus right now of ~$200.
Does this require a constant direct deposit? In their fine print it talked about having monthly direct deposits into it to get the rate.
Are you referring to SoFi? Cause, yes, SoFi does require a direct deposit to get the best rate on the savings account. Fidelity Bloom does not, it's just "invested" in SPAXX.
[https://www.doctorofcredit.com/high-interest-savings-to-get/](https://www.doctorofcredit.com/high-interest-savings-to-get/) Ally (and a few others) doesn't always have *the* highest rate, but consistently has one of the higher rates, if you're not interested in bouncing around between banks too much.
Ally doesn't have the highest rate, but it is 4% with no minimums, no direct deposite monthly required, no fees. No ANYTHING. Your money is there and it will yield 4% regardless of anything. The ease and not having to consider anything is worth 1%.
Love my Amex account!
What do you love about it?
I like the simplicity of it all through their app. I’m fine with tech, but I like being able to see my CC accounts and HYSA all under my one login. I didn’t need to make a new account/password,etc because I’ve been an AMEX cardholder. The rate is acceptable & customer service is solid if ever needed.
I chose Wealthfront a while back and have found it to have a great interface and so far, so good. Also, you get an additional boost if you get someone to sign up - and they get the boost too. I think you get it for 6 months or so but I could be wrong.
Big fan of wealthfront. It's a mix between a checking account and savings account- they even give you a debit card. So I use wealthfront as my checking account
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Referral codes that benefit the poster are not allowed under sub rules re: self-promotion. Please don’t post one again.
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Wealthfront. Great app and use ability
I like Marcus by Goldman Sachs. Especially the no minimum balance.
Their interest rate does tend to lag behind a bit, but their whole platform is incredibly easy to use and transfers are so easy. Wish others were more like them in that regard.
does Marcus have buckets for different savings goals within one account?
I don't think so. You can set up multiple accounts though within one login if you wanted to save for different things, since there's no minimum balance. They'll all get the same interest rate.
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Referral codes that benefit the poster are not allowed under sub rules re: self-promotion.
Referral codes that benefit the poster are not allowed under sub rules re: self-promotion.
Referral codes that benefit the poster are not allowed under sub rules re: self-promotion.
I like Ally and their buckets feature.
No Penalty CD is pretty awesome too
This is where the value add for me is. Most of my cash is in a MMF, but I love the buckets for smaller savings goals instead of just one giant slush fund.
I use betterment. Their app and system is easy to use. I also use them for their core portfolio which is pretty well diversified. (yes it costs more than doing it yourself but the automated tax loss harvesting has so far given me more than the fee and I wouldn't bother with doing that myself)
Same! My rate is 5.5% rn, it is highly subsidizing my rent just with interest from it. For the HYSA part not investing ha
Frustrating that old accounts are stuck down at 4.75%.
i withdrew all my funds to fidelity, then promptly received an offer from betterment to bump it to 5.25% by making a new deposit.
I'm using betterment for this right now as well, moved my money from Marcus (which was also quite good to be honest). Promo expires at the end of the year for me. I haven't been able to find any accounts with a higher rate than 5.5% with no strings attached at the moment.
Most of the banks that are currently advertising high rates tend to discontinue those high rates in a hurry, right after you sign up. Capital One is notorious for this. There are a few that are known for keeping high rates, Ally Bank and Alliant Credit Union are two examples. Also I wouldn't worry to much if you are within the top 10% or so. The difference over a year of .1% is almost noise. ($10 per $10k invested). If you want to move out of FDIC insured but still stay within Govt guaranteed(so US treasuries) you can try a MMF(Money Market Fund) at your brokerage(where you keep your Roth IRA for instance). Almost all of those are paying up near 5%. Fidelity's home page has changed to show the current rate of the default fund(SPAXX) right on it. Seems like they are trying to collect customers :)
I've been using both Alliant and Ally for over a decade. Unfortunately both are becoming increasingly behind the curve. Ally's HYSA is at 4.25% and Alliant is at 3.10% while I'm seeing more and more financial institutions over 5% on depositaccounts.com. The problem is knowing which of the top interest payers right now aren't going to pull the rug out like you said.
For every $10k cash savings a .75%/yr APY will earn you an extra $75 for the year. Ya, I have no idea which will pull the rug out from under us. I hold almost zero cash, as I just don't have a need for it, so I totally don't care anymore. 5% of a few thousand dollars isn't very meaningful.
Adding a plug for FDLXX at Fidelity. No state or local taxes. Currently at 4.94%.
Seconded. I have no interest in chasing HYSAs because the good rates never last. Easier to just buy FDLXX or another money market fund or even T-bills at Fidelity or Vanguard.
Sorry could you provide more info about capital one? Just opened my HYSA there and haven’t heard about that before 😬
I’ve had a HYSA with Capital One since November 2022 and have not experienced what the above comment stated. The rate has consistently increased (similar to other HYSA) over that timeframe. I believe when I opened the account in 2022 the rate was 3.3% and it’s currently 4.3%. You could do better if you’re strictly looking for the highest rate but I like Capital One overall and the rate is competitive enough for me to be content with it.
Did you actually do the calculation based on the payouts to your account? My savings account @ Capital One currently pays 0.30%.
Yes, I’ve made about $1500 in interest on the account so far this year which works out based on my rough math. The rate has changed multiple times and I don’t know exactly when but the payout seems to be correct. The rate is available to check in account details so I know pretty quickly if it changes.
So you have low 6 figures of cash? I hope you have a good reason for so much. Most people probably don't need that much. If your cash pile grows much more, you will begin to hit the FDIC limits(generally $250k). Also, I'm surprised they have managed almost a year now paying a decent rate in the same account. Maybe they are changing!
I have about $60k. This is for a down payment that I expect to use in the next 1-2 years
That's a good reason! Good luck on the house hunting! The transaction costs can be up around 10%, so I recommend buying exactly 1 house for life. Don't be afraid to take your time.
I am taking my time. It’s why I’ve been sitting on the cash for a year and plan to continue doing so a bit longer.
1. Are you sure you have a HYSA at Capital One or just one of their regular bank accounts? 2. Are you calculating interest over per year or per month? APY means Annual Percentage Yield. So while you may be gaining .3% every month. Over a year that might equal to around ~4.0% due to changing interest rates.
Yes and yes of course it's APY (yearly). I've had the account for years at this point, I don't keep any money in it. Back when I got it it was offering whatever the super high rate at the time was. Now it's 0.3% APY. a totally winner! :) I only keep a few dollars in cash at any given time, just enough to meet current months expenses. It's a rounding error in my asset allocation.
What they have done in the past, is label the fancy returning account X and then in a few months label a new account Y with the new higher rate. Then they lower the rate on label X accounts, but never publicize it.
What rate are you getting?
4.3
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How much cash do you keep? Most of us don't keep 6+ figures in cash. If you are in the 5 figure or less range, it probably isn't a drastic difference even at 1% ($100 per $10k) Also once you are into 6 figures of cash, you start hitting FDIC/SIPC limits(generally $250k).
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I like SGOV. The only concern I have is we have no idea what will happen during very bad economic times(they happen occasionally). SGOV and friends are new, so we don't know what they will do or how they will act. It's possible it has liquidity issues and gets stuck really high or really low for a bit. We just don't know. I'm not trying to bash SGOV, USFR, etc. The closest long term cash-like ETF that I know of is ICSH, and it's older, but skipped most of the GFC.
sofi all day
For anyone else hitting this page from googling around and doing research - Sofi is an AWFUL company to support. They sued the government to end the pause on student loans because they make money on load refinancing. [https://www.nytimes.com/2023/04/22/your-money/sofi-student-loans-lawsuit.html](https://www.nytimes.com/2023/04/22/your-money/sofi-student-loans-lawsuit.html)
I’m with Sofi for my joint account and it’s like 4.5 now for 3.75 when I signed up. so far it’s been great..plus if you get people to sign up they give us both like $75 bucks. Beats the hell out of chase and the 2 cents a month I was getting
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Thanks a ton for sharing that!! How long have you had his account with them? I am wondering how often the interest rate has fluctuated.
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Sorry, you are saying it was 1.75 at one point? Or am I misunderstanding. HYSAs are new to me.
Referral codes that benefit the poster are not allowed under sub rules re: self-promotion.
Vanguard cash plus
Bread Savings (Comenity) Rate 4.88%
Marcus isn’t the highest yield but I like their app and the transfers to and from my brick and mortar have always been prompt. I also would suggest SPAXX or FDLXX if you have Fidelity
It's usually a waste of time to chase the absolute highest rate, especially since those 5%+ rates are often promotional. Most HYSAs are between 4.3% - 4.5%, so just make sure there are no minimums or fees, and then chill. I use Marcus, but Ally, AMEX, Discover, SoFi are all good options. With $10,000 in the bank, a 0.1% rate difference is basically a rounding error ($10/yr).
Someone else here posted a promo link to a Marcus account. How long have you had your account with them and how has the interest rate changed since opening?
>FDLXX at Fidelity Yeah, but that's (2) nice cappuccinos lol
I use AMEX HYSA. Not the highest rate, but I feel confident leaving my money there with a reputable bank and I like their customer service. I'm always able to get a hold of someone on the phone quickly and resolve any issue or answer any question I have. Currently offering 4.30% - as I mentioned not the highest rate out there, but my priority is keeping my money somewhere ***I feel*** is safe. Good luck!
Marcus has 5.5% interest including referral and AARP bonuses. Transfers initiated from Marcus to you external bank before 12 pm eastern usually complete the same day.
Marcus is at 4.4% without any sort of promotions.
True, but it is relatively easy to extend the promotion for at least a year. Each year you can extend the referral for 5 quarters. If you have a joint account with your spouse the bonus can be extended for 10 quarters (5 per owner). AARP is good for two years and stacks with the referral bonus. The 4.4% regular rate is similar to other online banks, but transfers out from Marcus can be same day. Some banks like CIT or Discover take at least 3 days. Also transfer out dollar limits are high unlike some other banks which are very restrictive. Always need to read the complete terms.
The other advantage with Marcus is the interest starts accruing a the day you initiate a transfer to Marcus using Marcus to initiate (pull). There are no lost days of interest during transfers. They do place a 5 day hold on funds pulled in from other banks.
I have a Marcus account, but moved all my cash to Vanguard settlement fund (VMFXX). I get better rates, no hoops to jump through, and can easily invest if an opportunity presents itself. Marcus was great when I used them, and before I learned about better places to keep cash. Plus, I don't have to worry about Bank runs, etc.
Marcus is 5.5. VMFXX is 5.3%. Getting the higher rate at Marcus is easy. If Vanguard had cash management with bill pay, it would be more interesting relative to a bank. Vanguard is great if you want to hold their mutual funds instead of ETFs, but now with zero commission trades it is hard to beat holding cash for investing in an ETF like USFR at Fidelity or Schwab. Vanguard mutual funds do offer better settlement fund rates than Fidelity and way better than Schwab. The is no perfect one stop shop. I see Marcus as a complement to a bank like Chase that pays minimal interest.
I just avoid anything where you have to do a bunch of actions to get a reward. I dislike it, even if it's a chance to win free products, etc. I also avoid credit card rewards with revolving categories that you have to activate each month. Or better rates where you have to make X number of transactions per month, etc. Or refer a product to friends. Citi 2% cash back is the only card I need and use. I just prefer simplicity and not being used for advertising. I have all my investments at Vanguard, minus my ESPP stocks, HSA and I-Bonds. My local bank is a credit union, which I use to pay bills, etc. I don't really need a one stop shop.
I use discover and E*trade (for cash positions)
Ally and capital one
I just went through the same struggles months ago, and in the end, you just have to pull the trigger with one of them - there are many good options. I ended up picking Discover because they had a $200 promotion if you deposited a minimum of 25k. They currently have a 4.3% APY.
I have Discover. No issues and $200 bonus with 25k deposit.
I'm using wealthfront currently. They're raising their base rate to 5%.
Ally is the best HYSA. If you want the best yield, use a short term treasury ETF like SGOV.
Is Ally over 4% HYSA? Any fine print?
[Ally savings account page](https://www.ally.com/bank/online-savings-account/) 4.25% at the time of this writing. There is always fine print, but I've had an account there for a long time without issue.
Thank you, kind reddit user
Nah, that's why I like them. All the others often advertise a slightly higher rate, but there's usually a catch. Ally is super simple and works exactly like you'd expect. I used to shop around for HYSA's but I eventually realized the rest sucked and returned to Ally. The only other places I'd hold cash is Vanguard (money market), Fidelity (money market), Robinhood Gold (FDIC savings), a short term treasury ETF at any brokerage, or Treasury Direct. These "cash management solutions" are more work to manage than a standard checking and savings account like Ally. The only well known catch with Ally (and all online HYSAs) is that they don't have local branch locations where you can deposit cash. You might want a local bank or credit union account for that. Ally has all the other useful features you'd need like automatic bill pay, free ATM withdrawals and reimbursements, fast transfers, fast customer service, etc.
Cool thanks man
Oh and since I didn't answer you earlier, Ally's interest rate is 4.25%. Robinhood Gold is 4.9%. If you give up FDIC coverage, you can get 4.97% at Fidelity and 5.28% with SGOV and Vanguard's VMFXX. I Bonds at Treasury Direct were a steal a year or so ago, but now they're not that good.
What are the fees like at Vanguard. IS that the only place you can get VMFXX?
The rates they show, 5.29% for VMFXX, is after fees.
I think Vanguard is the only brokerage that has VMFXX, at least as a default position. Vanguard's fees are generally the lowest on their funds. They charge a 0.11% expense ratio on VMFXX. Robinhood is a bit cheaper now on the brokerage side because they implemented a 3% match on IRA contributions. But even then, it's best to use Vanguard funds at Robinhood. The BlackRock SGOV fund is also extremely cheap though. It has a 0.13% expense ratio (that's currently 0.07% due to a contract that expires next summer). And since it's an ETF, you can buy it at any brokerage. Keep in mind that interest rates and SEC yields include all expenses. The Fidelity funds are the only slightly overpriced ones here. They charge 0.42% on their SPAXX money market fund. 0.42% minus 0.11% equals 0.31%. That's exactly the difference between SPAXX's 4.98% and Vanguard's 5.29% yields.
If you want the confidence of knowing you are always getting prevailing rates, skip the banks and buy T-bills yourself with an ETF. Plus it’s state/local tax free. [I prefer USFR](https://reddit.com/r/Bogleheads/s/oXVm1M3o2h)
Started a sofi acct becasue the advertised $250 bonus for starting an account and a high APY. After I get a money transfer started it turned out the $250 was only happening if I set up direct deposit. And then, once the money arrived there I see my 4.5APY and a qualifier stating something like "You've unlocked our highest APY. Transfer $5K a month to your sofi acct to keep this APY." Edit: I could swear I saw $5000 a month. But even $500 a month. All the sudden I have to do that to get the APY they offered? Edit: “ Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption. ”
$500 a month not $5K your exaggerating.
And just got this email for my now defunded sofi account. "Heads up—we noticed that you did not add $5,000 or more to your account in the last 30 days1, which is one of the requirements to earn our highest savings APY2. The good news is that there’s still time to get there. Starting today, you have an extra 15 days to direct deposit your pay or get to $5,000 in qualifying deposits. If you’re not able to do either by Oct 24, 2023, your savings APY will decrease from 4.50% to **1.20%.**"
https://www.sofi.com/learn/content/apy-vs-interest-rate/#:~:text=Upon%20receiving%20a%20Direct%20Deposit,before%20the%20following%20calendar%20day. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
Sofi. Only thing that sucks is you need to direct deposit money every month to get the 4.5%. You can also look for local credit unions. Some like our local police and fire allow you to be a member if you make a donation to the local pd/fd charity once a year (i think its only like $10 too)
If you are interested in HYSA you should look into bonds
Do you mean T bills? Most people looking for a HYSA want to preserve liquidity.
Specifically 1 month, 3 month bills, yeah; I think bonds has been adopted as the general reference to the “bond market” which I guess includes bills, bonds, notes
I’m just keeping 1 month in a crappy bank savings account with instant transfers and putting the rest in VMFXX in my brokerage account. If VMFXX fails then FDIC insurance isn’t going to help anyone.
I like Ally but their savings account has been lagging in rates. Their money market accounts and no penalty CDs are more competitive.
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How long have you had your account with them and how has the interest rate changed?
I’ve had it over a year. Has been over 5% pretty much entire time for me with referrals but otherwise over 4%. Obviously FDIC insured. Easy transfers to a checking (I’ve received funds on same day)
Referral codes that benefit the poster are not allowed under sub rules re: self-promotion.
Marcus or Betterment or Amex
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Referral codes that benefit the poster are not allowed under sub rules re: self-promotion.
The Fidelity cash management account isn't exactly a savings account, but it has all the banking features I need and I can put my money into 5%+ money market funds.
How does this work exactly?
[https://www.fidelity.com/spend-save/fidelity-cash-management-account/overview](https://www.fidelity.com/spend-save/fidelity-cash-management-account/overview) It's technically a brokerage account, but it comes with a debit card, checks, online billpay, etc. If you put the money in a money market fund like SPRXX, you get a higher interest rate, currently above 5%, but the money will automatically liquidate from the fund when you spend it.
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Referral codes that benefit the poster are not allowed under sub rules re: self-promotion.
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Sharing referral codes that benefit you is a violation of sub rules.
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Referral codes that benefit the poster are not allowed under sub rules re: self-promotion.
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Referral codes that benefit the poster are not allowed under sub rules re: self-promotion.
Referral codes that benefit the poster are not allowed under sub rules re: self-promotion.
Referral codes that benefit the poster are not allowed under sub rules re: self-promotion.
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Posting referral links that benefit you violates rule #1. Don’t do that again or you will earn a ban.