OT- high yield savings accounts

[sjbraun]

Now that some online banks/CUs are offering 2-2.5% interest rates on savings, I'm thinking about moving my emergency funds from my credit union to one of the higher paying alternatives. These are the things I'm considering:
1) FDIC insured
2) No fees or minimum balance requirements
3) ATM access to withdraw funds
6) Reasonable number of withdrawals per month. (4-6??)
7) Check writing option.

Is there anything else I should consider before opening one of these accounts?

Thanks

[Ozz]

how long is rate good for (some rates are introductory and expire in a year or so)
does rate apply to entire balance, or just the first $xxxx.xx balance
Minimum balance levels
limited number of withdrawals
credit worthiness of bank

[AngryScientist]

Do you really need 6 withdrawals a month in your emergency fund?

You'll probably score a better rate on an acct that DOES have a minimum balance requirement.

[NHAero]

I've been using CIT Bank but make very few transactions. The rate floats, so you need to watch it! And then they open new account types with better interest. I had the Savings Builder and didn't know they had a new account called Savings Connect. Today that is paying 2.372%.

[KarlC]

I have been using CIT Bank for a few years now, right now they have .....

https://www.cit.com/cit-bank

- Savings Connect 2.40% APY

Benefits of Savings Connect
Earn over 14x the national average with a Savings Connect account.Scroll to disclosure:2

Digital convenience with online banking and the mobile app

Deposit checks remotely and make transfers easily with the CIT Bank mobile app.

Easy account opening

FDIC insured



- No-Penalty CD 2.50% APY

Benefits of our No-Penalty, 11-Month CD
No penalty to access funds if needed before maturityScroll to disclosure:2

No opening or maintenance fees

Daily compounding interest to maximize your earning potential

FDIC insured

[deluz]

I am far from an expert on this but another option are T-Bills currently paying 4.16% on a one year T-Bill. Of course interest income is taxable so you end earning less than that.

[NHAero]

Originally Posted by KarlC

I have been using CIT Bank for a few years now, right now they have .....

https://www.cit.com/cit-bank

- Savings Connect 2.40% APY

Benefits of Savings Connect
Earn over 14x the national average with a Savings Connect account.Scroll to disclosure:2

Digital convenience with online banking and the mobile app

Deposit checks remotely and make transfers easily with the CIT Bank mobile app.

Easy account opening

FDIC insured



- No-Penalty CD 2.50% APY

Benefits of our No-Penalty, 11-Month CD
No penalty to access funds if needed before maturityScroll to disclosure:2

No opening or maintenance fees

Daily compounding interest to maximize your earning potential

FDIC insured

1 year CDs are available paying over 4% these days, looking them up on Fidelity.

[echappist]

Originally Posted by sjbraun

Now that some online banks/CUs are offering 2-2.5% interest rates on savings, I'm thinking about moving my emergency funds from my credit union to one of the higher paying alternatives. These are the things I'm considering:
1) FDIC insured
2) No fees or minimum balance requirements
3) ATM access to withdraw funds
6) Reasonable number of withdrawals per month. (4-6??)
7) Check writing option.

Is there anything else I should consider before opening one of these accounts?

Thanks

Stash amount needed for the next 90 days in regular savings; stash everything else on a 1-yr CD ladder.

Open a Schwab brokerage account and buy a 1-yr CD ladder (the brokered CD products are all FDIC ensured). Each of the steps is yielding APY of at least 3.30% (even the 3-month one). The first time each of the steps matures, roll it into a 1-yr CD, so that you always have 3-month staggered maturity.

At the same time open a Schwab checking account, which comes with reimbursement for ATM fees incurred anywhere in the world.

[fignon's barber]

Originally Posted by NHAero

1 year CDs are available paying over 4% these days, looking them up on Fidelity.

This. Brokered CD's. Right now a 3 month is paying 3.95 percent. I've been buying them for the last couple months, and spreading them out.

[prototoast]

Brokered CDs and treasuries are both good, safe investments right now, but if the op is thinking about four to six withdrawals per month, I think he might be better off with a lower yielding savings account.

[openwheelracing]

I think my Robinhood acct has 3%

[Ken Robb]

I was surprised to find that Schwab offered me a CD from a bank where I am already a customer that was higher than the bank would offer me without going through Schwab. I guess other brokerages and banks have similar arrangements at least some of the time. I think T-bill income is exempt from California State Income Tax for residents.

[Toddtwenty2]

LMCU has a solid yield on checking, up to $15k balance.

3% up to $15k.
No minimum balance or fees.
I believe you need 5 transactions per month - either on a credit card or debit card.


https://www.lmcu.org/personal/banking/checkingaccounts/

[Dude]

I'm only here for the answer, not the actual discussion.

[tbike4]

9.62%? Really? What's the catch except it will go down to 6% in November.

https://www.treasurydirect.gov/indiv...bonds_ibuy.htm