No Strings High Rate Savings Accounts

[alarmguy]

The strings may be invisible. One example will be how they handle transfers. Example, you request an amount to be transferred to your regular bank account. That transaction might take 2-3 business days. That is a sign they are floating your money.

Absolutely I agree with you, I think all banks float but what difference does that make to me? None, Im making money switching and I start collecting interest the day the money hits my account, meaning it doesnt have to clear to be available in order to start collecting interest with the banks I mentioned. This goes for anything banking.

But now that you mention it, since I just moved around quite a bit I will get back in here and comment after I see what days the money was transferred and how long the delay was, if any. I was surprised how fast but I did not track time frame which still doesnt matter as its all the same when you invest.

Edit: (update)
As promised, wow!
Im even shocked, maybe because they were online ACH transfers? I dont know.

But the transfers out of one bank account to the two banks I have mentioned in here was same day. More or less in the case of opening a Discover account, the transfer was in the same day with interest posted the next day.
WIth CIT BANK, same thing. Posting date was the same as withdrawal date from the bank I moved it out of.

Im wondering if a new law was passed? OR was it because I had those banks withdraw the money from my main bank, vs me sending the money from my main bank. Interesting.

 

[alarmguy]

The strings may be invisible. One example will be how they handle transfers. Example, you request an amount to be transferred to your regular bank account. That transaction might take 2-3 business days. That is a sign they are floating your money.

I think I figured this out because as you know I agree about the float but I dont see that as a hinderance to making money as there is a float with any banking. But, as posted above this post. I figured out why no float or better said no multiple day floats.
When opening a new account, you can have the new account (bank) withdraw the money from the bank you are transferring it from.
So it's same day as I posted above, I didnt send money from my bank to the new account at a new bank. I had the new bank withdraw the money from my existing bank and all took place the same day.

Then it occurred to me its the same way as bill pay. If you send money to pay a bill from your existing bank, the money is taken out the very second you hit the "submit" button. (and then the float starts)
BUT if you have the company you are paying withdrawn the money from your account then I guess much less float because they are directly withdrawing it.
Anyway, yeah, kind of why I like this forum. Helps think things through and learn.

 

[tbm5690]

Got over 30 accounts, some from over 10 years ago, that I can transfer funds between. Most of them I keep only a penny in to keep them open and haven't used in years.

Curious why you do this just to keep them open? This sounds like the stuff nightmares are made of for your kids when you pass away.

 

[atikovi]

Curious why you do this just to keep them open?

Just to make it easy to transfer money into, if their rates go up. Haven't used my Merchants Bank of Indiana MMA for a few years, but their rate started to go up a few months ago so it was pretty easy to move money into that and it's at 3.82% now.

 

[alarmguy]

I haven't done the high interest online savings account thing in about 20yrs. I recall having one though something like Manhattan bank in the early 2000's that had a 5.5 or 6% rate. It kept dropping until it wasn't worth it.

I'll just stick with my local bank's nickel a month if I'm lucky. LOL

Well, its not really "high interest online savings thing"
It's a savings account that pays a good interest rate. (but I get what your saying) Throughout banking history, some banks pay better than others and very true, online banks, much like online anything enables better prices for everything.

As far as being "worth it" just depends how comfortable one is with the computer because its easy sitting at a desk vs driving around town to a bank.

 

[thastinger]

I wonder how many play the rate game with savings accounts as the difference can really add up over time.
I have my investments in the market but there are times beside always keeping some liquidity, when I need to keep more money liquid as well, such as currently building a new home.

Anyway, I always liked Alliant Credit Union, interest on checking and savings. Savings interest was always far above the national average though recently I think they have fallen behind in being near the top. However a few years later now I dont feel that way anymore.

Feel like customer service is to slow compared to the best online banks and the rates much to my surprise have fallen way behind the competition. So I have been moving money around, signing up with new banks ect.

Among the highest rates I see this week is 3.6% with CIT BANK (not CITI BANK) worst is Alliant at 2.6% and middle ground Discover bank at 3% but with a $200 to $500 sign on bonus from Discover so short term that makes up for a lot. Also others like Bask Bank, Lending Club ect ect that I haven't tried. Just search for high rate savings accounts on duckduckgo and google.

Make sure of the terms like some big banks CITI Bank (not CIT Bank mentioned above) require combination accounts ect. That I stay away from.
I only choose banks that do not have restrictions, fees for simple transactions and "catches" and never accept a charge to transfer money around.

It's so easy to switch around banks online that there is no reason to settle for less, no different than shopping at Amazon really. Just like Amazon, I never see any of these "banks" in the real world.

Simple multiple searches show you the rates, you then go to the websites and check if it's right for you.

Appreciate this. Wife and I saved up enough to build the retirement home outright (in process) but we have big chunks of money sitting in our savings account waiting for the builder to reach a payment milestone in construction. We've been with the same CU for 35 years but their saving account rates are crap, they offer a 4.25% yield on a "new member" money market account with a min 100K deposit BUT you can't get that if you're an existing member, which is stupid because it caused me to put a bunch of ones and zeros in CIT Bank this morning. Setup was super easy, took 5 minutes and linking accounts was super easy as well.

 

[2strokeNorthstar]

Discover
$500 Bonus offer expires around 12/7 or 12/15/22
Code Bonus1122D was just a few days ago and ends sometime in Dec. Bonus1122E might be another.
$50,000 or greater deposit required for $500

Either way the page at the time on Discover when signing up gives you the options on all the codes.
($500 does exist, less publicized and MAY have a shorter offer period)
You can also call them I guess, USA service center and they pick up fast was my experience.

I like their banking website, very fluid and complete for your account, Also I experienced faster than other banks I deal with, ACH transfers and lower hold times.

Found another link. This link says offer expires 12/7/22 but they seem to always have offers flying around but the codes change or maybe just a different link or they extend the current . I’m sure you can always call for a code too, phone number is on the link below.

High Yield Savings Account - No Monthly Fees | Discover

High-Interest Savings Accounts from Discover Bank, Member FDIC offer high yield interest rates with no monthly balance requirements or monthly fees, all online.

www.discover.com

Here is another, no bonus but among the best savings rate today with no “catch”
Website and app modern but less polished I guess because of updates as First Citizens Bank bought them this year and made Thurman a division plus merging their commercial operations into theirs or something like that.

Savings Account Options | CIT Bank

A CIT Bank savings account helps you get more from your savings with interest rates for maximum growth. See how we can help you reach your goals.

www.cit.com

…

Am I reading it right? $50K TOTAL DEPOSOTS. not $50k balance. So I just have to move $10k in and out 5 times the first month?

 

[alarmguy]

Am I reading it right? $50K TOTAL DEPOSOTS. not $50k balance. So I just have to move $10k in and out 5 times the first month?

I had to look myself, yeah, you are reading it right but I suspect you wont get away doing what you suggest *LOL*
I have to give a shred of benefit of doubt to the bank that under the "Terms and Conditions" that you are forced to accept as you start filling out the application the requirements will be properly spelled out.

 

[2strokeNorthstar]

I had to look myself, yeah, you are reading it right but I suspect you wont get away doing what you suggest *LOL*
I have to give a shed of benefit of doubt to the bank that under the "Terms and Conditions" that you are forced to accept as you start filling out the application the requirements will be properly spelled out.

I'm going to try and hopefully score some free cash.

 

[alarmguy]

Appreciate this. Wife and I saved up enough to build the retirement home outright (in process) but we have big chunks of money sitting in our savings account waiting for the builder to reach a payment milestone in construction. We've been with the same CU for 35 years but their saving account rates are crap, they offer a 4.25% yield on a "new member" money market account with a min 100K deposit BUT you can't get that if you're an existing member, which is stupid because it caused me to put a bunch of ones and zeros in CIT Bank this morning. Setup was super easy, took 5 minutes and linking accounts was super easy as well.

Very cool, glad to hear it worked out for you.
Yeah, Im not understanding my Credit Union, one of the largest in the nation but interest rates haven't risen as fast this time around (normally they used to be near the top) and why I bailed a lot of my account out of them.

CIT Bank app and website is a bit clunky including untitled emails alerting me when I access my accounts from another computer but I suspect this is all due do the First Citizens buy out and merging as a division of First Citizens Bank. I love the no strings 3.6% return.

Discover Bank as you might expect is super fluid and really sweet but you pay that price of a .6% interest rate penalty even though they still beat the credit union.

Some people automatically discount savings rate but they sure are attractive when you want to preserve your savings and need to stay liquid.
Thrown in you look like areal hero when the stock market goes sideways and down.

 

[2strokeNorthstar]

Ugh. Discover really doesn't like new account holders moving cash around. So annoying. It's my money, no law against moving it around. We'll see if I get my bonus. Definitely closing the account after if they keep up the games.

 

[Vern_in_IL]

You need like a 10% interest rate to offset inflation.
You are still loosing money "buying power" even at 6% interest....

 

[atikovi]

You need like a 10% interest rate to offset inflation.
You are still loosing money "buying power" even at 6% interest....

That's the rhetoric "financial advisors" what you to believe. Reality is inflation effects everybody differently. Older folks who have their house paid off don't have to consider housing costs, which make up a big part of the inflation calculation. People complain about the price of groceries as being so inflationary. I don't buy milk, bread, eggs, coffee, cereal, etc., so that aspect of inflation doesn't affect me. If you don't buy a new car every 2 or 3 years, transportation costs don't rise as much for you. I would love more inflation. Over 4% interest on savings is fantastic. Hope it goes to 5 or 6 percent.

 

[PimTac]

That's the rhetoric "financial advisors" what you to believe. Reality is inflation effects everybody differently. Older folks who have their house paid off don't have to consider housing costs, which make up a big part of the inflation calculation. People complain about the price of groceries as being so inflationary. I don't buy milk, bread, eggs, coffee, cereal, etc., so that aspect of inflation doesn't affect me. If you don't buy a new car every 2 or 3 years, transportation costs don't rise as much for you. I would love more inflation. Over 4% interest on savings is fantastic. Hope it goes to 5 or 6 percent.

This is a weird statement. You don’t buy groceries?

Everything goes up in an inflationary environment. No one is immune from the ravages it causes.

 

[atikovi]

This is a weird statement. You don’t buy groceries?

Everything goes up in an inflationary environment. No one is immune from the ravages it causes.

Sure I do, but inflation is calculated from many things.

House is paid off so only taxes and insurance plus utilities and maintenance affect me so maybe half that or say 12%.
Don't eat a whole lot and try to find deals to save on groceries, so maybe 12% there.
Not much in the way of recreation, maybe 3%.
Transportation is a write-off so near 0% for that.
Haven't bought furniture in years so maybe cable and internet service for 3%.
Don't smoke or drink, 0% there.
No education expenses.

So maybe I use one third of the items on that list and thus inflation effects my budget a third as much as someone that consumes everything on that graph.

 

[AZjeff]

CIT Bank went to 3.85% interest.

 

[atikovi]

My Savings Direct 4.35% savings account.

https://www.mysavingsdirect.com/securebanking/login.do?_flowExecutionKey=_c3C5B3A6E-1BB7-D183-FF07-A2FDA52361B1_k29F7AFA1-9874-C6B2-BA94-74EAC6DD42DD

 

[alarmguy]

You need like a 10% interest rate to offset inflation.
You are still loosing money "buying power" even at 6% interest....

Yeah agree but ssfer than keeping it at my house and more safe and liquid than the stock market and mountains better then your local commercial bank

 

[GMFan]

3.3% at Ally, still better than what a lot of banks give.

 

[alarmguy]

Ugh. Discover really doesn't like new account holders moving cash around. So annoying. It's my money, no law against moving it around. We'll see if I get my bonus. Definitely closing the account after if they keep up the games.

I don’t understand your statement. How does Discover prevent or hinder you from accessing your money?
The Federal Government would not allow it.

Oh! I got your number! Your the one who thought you were going to be able to meet their requirements getting a free $500 for depositing $50,000 for at least 30 days by not keeping the $50,000 in for the full 30 days because the wording said 50,000 in deposits for 30 days

I’ll be getting the free $500 30 day interest promotion payment plus the daily compounded 3% in a few weeks