I recently opened an account with Ally Bank. I've only had to call customer service twice but already noticed that call wait times are significant. Has anyone else experienced this (or other customer service issues) with online banks? The need doesn't come up often to converse with a human at a bank -- but when it does (and it comes to your money) it's nice to know it's not difficult to get support.
Savings accounts interest rates seem to be improving! We moved money to this account this weekend because of its 2.4% yield: https://www.mysavingsdirect.com/ (I have no affiliation with that bank, it's just the best rate we found.) Anybody else using a high-interest savings account we could all benefit from knowing about?
It is relatively easy. One takes and signs up for an account at the online bank of choice, fills out the requested information along with the amount to be transferred, and then there is usually a verification process, ie, the bank you're transferring will put in two small transfers to your account at the regular bank that equal less than a dollar. After these two have cleared, they will allow you to have the transfer take place. It usually takes anywhere from 3 to 7 days to ensure that the...
Thanks for sharing this one. I am always on the lookout for out for high interest savings accounts. The space is getting pretty competitive so I think we will be seeing higher and higher interest accounts in the near future. I am excited about Robinhood as they just announced they will soon be launching a 3% savings account which I will most definitely be taking advantage of once it launches.
I recently opened a savings account with Ally. It had the highest APY that I saw at the time. It's been good so far. They allow for plenty of transfers per statement and partner with Zelle for immediate transfers. That being said, hearing about 2.4% and 3% APY is changing my mind lol
Ally used to carry the payments on our Nissan Sentra before my wife was rear ended and nearly killed back in December of 2015. We dealt with them for 2 1/2 years, and they were very easy to deal with. We've considered putting our money in the "high" interest savings accounts, but, like you, haven't quite pulled that trigger yet. We've got a friend who is making more by putting his money into back taxes on small properties. He's getting on average of 6-8% a year on his money compared to...
@Theodora I use quite a few different online banks and investment apps and in my experience, it can vary from company to company. Some I call and get right away while others have long wait times. One investment company got rid of their telephone support completely and now only communicates via email. With a lot of financial institutions (banks, insurance, etc.) they tend to fall short when it comes to providing quality, quick customer service. That is one of the perks of having a local bank...
I switched to Marcus for my emergency savings and I have been getting emails every few weeks to tell me the interest rate is going up. I started at 1.85% and got up to 2.25% in....maybe three months? I remember the days of a 5% interest rate....sigh!
Hi Everyone, I am thinking about closing my traditional bank account like TD and Chase. I already have 1 online high yield interest bearing savings account and im thinking about going all in. I no longer want to see an interest of .01 cent every year? or have to keep a minimum in order to avoud fees. What do you guys think?
From what I've read, online only banks are safe as long as they are FDIC insured. It's just like how you use the app or website for your regular bank - just without that brick-and-mortar overhead. One thing to remember though: *personal* online security is still up to you. (aka maybe don't use your banking apps when you're on the free coffee shop WiFi.) The bank will take security measures on its end so you can use the app or website safely, but you still need to practice good online habits.
@mintjulep For what it's worth, I've heard such great things about Ally from lots of credible sources. I just opened an account with them and the experience has been excellent so far. They offer paper checks as an account feature -- which I couldn't find at any of the other online banks. (I have had to work with a lot of contractors, handymen and landscapers in the past year that still only take checks.)
I just opened an account with Empower and will be putting some money in there shortly. FDIC insured is something you can usually count on. I personally enjoy trying out new things and am usually one of the first to test these new things. There is a always some measure of risk involved but as long as the company is reputable and isn't promoting anything that I would deem to be sketchy, I will usually at least give them a shot. As mentioned above, it really just depends on you and weather you...
I definitely think it is worth it. I don't put all my eggs in one basket anyway, even when it comes to just a checking account, so why not get as much interest as is available. I'd love your input on the various online banks as you try them @Moore Income! You've listed some others that I've not been aware of. Thank you!
@Moore Income how do you strategize what money goes into what account, and how do you stay organized? I recently consolidated some of my cash and closed some extraneous accounts, mostly for simplicity's sake. How do you maximize your 6 checking accounts?
@Former Member Good question. I personally am just testing most of them to see howh they work and such and I usually just start with a set amount. I have moved money between a couple due to a better interest rate but I haven't really added much to the accounts besides the initial deposits. I am starting to add more to My Haven account since they have a 2% interest rate (up to 4% if you refer people) they also allow me to connect all my other accounts to manage my money in one place. So...
I personally have been transferring my money to higher yield savings accounts without all the fees. There are so many new services out there that give you much higher interest than local banks. They are going to have to start competing or they are going to fall behind. The fact that they give so little interest and charge fees is not appealing to me at all. I had about $120 in my local savings account and I transferred it to my checking right before Jan. because I wasn't sure if my paycheck...
I have now considered putting my emergency fund in a online CD account for 2.90 APY. its money i shouldnt be touching and hopefully i dont- but if anything I do have credit card I can use. Ive been thinking about doing the 12 months or 24 months CD. nothing more then 2 year. Doing the calculations - if i put 10k in, thats can be $285 or $588 respectivetly. Not bad for a year or 2 years.
Thanks for sharing such a comprehensive list! I did check on the DCU website and it does actually say there is a $5 minimum. Not that it makes a huge difference but just sharing what I saw. I have also used Aspiration which pays a 1% APY with no minimum or fees. I am also trying out the Haven Money savings account which pays 2% APY and up to 4% if you refer enough people.
Thanks for sharing. I am wondering which specific savings account it is that gives you the 3%? I searched Discover Savings Accounts and came across this page https://www.discover.com/onlin...ing/savings-account/ but it only shows an account with 2.10%
OMG I JUST FOUND THIS!! https://www.t-mobilemoney.com/en/home.html 4.00% APY under $3000 and the following requirments Have tmobile wireless account deposit $200/month sign up for tmobile perks Now with these stipulations you can max. your money. See the secenarios below. T-Mobile Money states you will make 4.00 APY if you have the fall in line within the 3 listing eligibities above. If you go over the $3,000. this means that the $3,000 will make anywhere between 2.79-4% APY and anything...
I have an LLC for my freelance writing/editing work, and for a few years I've had a separate checking account for those funds. I recently realized that I don't have enough cash in the account to have the monthly "maintenance" fee waived - so I'm losing $15 a month! I know my freelance business hasn't been super busy these days, but I'd certainly like to hold on to most of the money I've earned, you know? I'd love to hear about your experiences with online-only checking accounts for your side...
I'm nervous about the solidity of some online-only banks, but there is the carrot of fabulous interest rates. I noticed the app discussed recently at Penny Hoarder, the Empower app, is FDIC insured up to $250,000. I'm interested in getting as much interest as possible on reserve cash, as anyone, but am I being overcautious here? How much confidence should we have in these online-only banks?
Thank you Lisa! I know some of the on-line banks, like Ally, have been around a while, I'm wondering if there is a way to check out their performance. I assume if they advertise FDIC insured that's a first step.
I would say to go with a mutual fund or to go to your county court house to see if there are any properties that have back taxes. One can make anywhere from 6-12% on the money they pay in back taxes on someone else's property! We have done this a few times, and it was good. But one always needs to check the property's condition, ability to sell, just in case you end up with the property. More often that not, if you do, it will be of much greater value than what you paid for the back taxes.
As far as savings accounts, you could keep going to the high interest savings accounts. The regular savings accounts are a good tool for kids to start learning the value of money, but for adults, the higher interest rate accounts are the way to go.
I talked to a local realtor friend of mine. I also spoke to an investor in the town I grew up in while I was visiting there. The thing one needs to remember on these is that you may not get your money back for up to two or three years. But, you still get the interest as well. If the person never pays the back taxes, you get the first right to buy the property, sometimes for the costs of the back taxes alone. It is an involved process...I don't remember if it was Robert Kyosaki (Rich Dad Poor...
I liked my return on investment on the tax lien certificates, but there was way too much involvement for me at the time, and I didn't have the time. But, many of my friends ended up making a good chunk of change in it, Im thinking of going back to it again.
I live in NY - and unforuntately, from my quick research. this isnt possible. they only sell wholesale. Also you have to be a holding company. i think westchester county may allow for the public to buy. But it does seem like alotof involvment.
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