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online savings account high interest

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online savings account high interest

Hi, which online bank offers the highest interest for savings accounts right now ? 

Message 1 of 13
12 REPLIES
Established Contributor

Re: online savings account high interest


anonymous4a wrote:

Hi, which online bank offers the highest interest for savings accounts right now ? 


I have a Barclays Savings account paying 1%...

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Message 2 of 13
Frequent Contributor

Re: online savings account high interest


anonymous4a wrote:

Hi, which online bank offers the highest interest for savings accounts right now ? 


Check the link to compare

 

http://bfy.tw/2Vkk

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Message 3 of 13
Frequent Contributor

Re: online savings account high interest

At 1%, it will take upwards of 70 years to double one's balance. Even at 1.5%, will take nearly 50 years. Or to put it another way, at 1%, one will net ~$100 yearly per $10,000 banked. Doesn't pay to park money in banks. Consider long term U.S. treasury bonds.

 

On an aside, from my understanding, the Fed was seeking to discourage banks from offering savings / CD rates too far above the norm. Not sure if such a policy was ever implemented, but it sure seems savings / CD rates are very similar across banks more than I recall in the distant past.

 

Another approach, which relates to this forum, is running everything (utilities, fuel, groceries, meals, etc; paying friends for products / services via Square / PayPal Here; putting work expenses on credit and getting reimbursed while keeping the rewards) through cash back / rewards credit cards - you'll likely net a lot more than any savings account out there.

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Message 4 of 13
Senior Contributor

Re: online savings account high interest

There are sites (in addition to the link above) that compile this information.  Don't overlook Google as a resource:

https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&es_th=1&ie=UTF-8#q=high%20interest...

 

Message 5 of 13
Established Contributor

Re: online savings account high interest


ronpa wrote:

At 1%, it will take upwards of 70 years to double one's balance. Even at 1.5%, will take nearly 50 years. Or to put it another way, at 1%, one will net ~$100 yearly per $10,000 banked. Doesn't pay to park money in banks. Consider long term U.S. treasury bonds.

 

On an aside, from my understanding, the Fed was seeking to discourage banks from offering savings / CD rates too far above the norm. Not sure if such a policy was ever implemented, but it sure seems savings / CD rates are very similar across banks more than I recall in the distant past.

 

Another approach, which relates to this forum, is running everything (utilities, fuel, groceries, meals, etc; paying friends for products / services via Square / PayPal Here; putting work expenses on credit and getting reimbursed while keeping the rewards) through cash back / rewards credit cards - you'll likely net a lot more than any savings account out there.


 

Yup. It is not a long-term saving strategy, you need to invest in something if you expect a meaningful return over 50 years. But it's better than getting zero. If you ARE going to pool cash somewhere, might as well be in a "high" interest savings account. If you are investing for 50 years talk to Vanguard or somebody.

 

When I was saving up for my car purchase I pooled my money into a "high" interest savings account. I put "high" in quotes because it was a whopping 1.25% when I started and recently declined to 1.1% (mysavingsdirect). Still, as my car money saved up in the account month after month I earned a little, and wound up with a few bucks I woudn't have had if I left it in a checking account.

 

Actually the main appeal to me of a savings account is that it's hard to get the money out. Meaning, once I decide to take it out, it takes 2-3 days to ACH it back to my regular checking account. That deters me from spending it until the planned purpose...

 


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...
Message 6 of 13
Community Leader
Senior Contributor

Re: online savings account high interest

Great thoughts by Canadian.  I'll add one thing.  He writes:

 

"If you ARE going to pool cash somewhere...."

 

Not only IF you are, but you SHOULD be.  All financial planners advise you to have an emergency fund or a rainy day fund -- of cash.  And it should be pretty big: at least three months of your salary, likely more.  This is completely separate from your retirement savings, though it can be helpful there if there is a massive stock market crash (where one benefits from a big supply of cash to buy stocks at low prices).

 

If you are willing to move your cash around a bit, it's not hard to pick up at least a thousand a year in various sign up bonuses for checking and savings accounts.  And there are are some regular places to keep cash that are offering 3 or even 5%.

Message 7 of 13
Community Leader
Senior Contributor

Re: online savings account high interest


Canadian-In-Seattle wrote:

ronpa wrote:

At 1%, it will take upwards of 70 years to double one's balance. Even at 1.5%, will take nearly 50 years. Or to put it another way, at 1%, one will net ~$100 yearly per $10,000 banked. Doesn't pay to park money in banks. Consider long term U.S. treasury bonds.

 

On an aside, from my understanding, the Fed was seeking to discourage banks from offering savings / CD rates too far above the norm. Not sure if such a policy was ever implemented, but it sure seems savings / CD rates are very similar across banks more than I recall in the distant past.

 

Another approach, which relates to this forum, is running everything (utilities, fuel, groceries, meals, etc; paying friends for products / services via Square / PayPal Here; putting work expenses on credit and getting reimbursed while keeping the rewards) through cash back / rewards credit cards - you'll likely net a lot more than any savings account out there.


 

Yup. It is not a long-term saving strategy, you need to invest in something if you expect a meaningful return over 50 years. But it's better than getting zero. If you ARE going to pool cash somewhere, might as well be in a "high" interest savings account. If you are investing for 50 years talk to Vanguard or somebody.

 

When I was saving up for my car purchase I pooled my money into a "high" interest savings account. I put "high" in quotes because it was a whopping 1.25% when I started and recently declined to 1.1% (mysavingsdirect). Still, as my car money saved up in the account month after month I earned a little, and wound up with a few bucks I woudn't have had if I left it in a checking account.

 

Actually the main appeal to me of a savings account is that it's hard to get the money out. Meaning, once I decide to take it out, it takes 2-3 days to ACH it back to my regular checking account. That deters me from spending it until the planned purpose...

 


I agree that your emergency fund should be separate from your retirement savings. A online HYS is better than depositing it with the regular brick and mortar institutions unless yours offers a HYS. Even if you can't afford to put a lot into your emergency fund still set up one. Every little bit helps.

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Message 8 of 13
Community Leader
Senior Contributor

Re: online savings account high interest


ronpa wrote:

At 1%, it will take upwards of 70 years to double one's balance. Even at 1.5%, will take nearly 50 years. Or to put it another way, at 1%, one will net ~$100 yearly per $10,000 banked. Doesn't pay to park money in banks. Consider long term U.S. treasury bonds.

 

On an aside, from my understanding, the Fed was seeking to discourage banks from offering savings / CD rates too far above the norm. Not sure if such a policy was ever implemented, but it sure seems savings / CD rates are very similar across banks more than I recall in the distant past.

 

Another approach, which relates to this forum, is running everything (utilities, fuel, groceries, meals, etc; paying friends for products / services via Square / PayPal Here; putting work expenses on credit and getting reimbursed while keeping the rewards) through cash back / rewards credit cards - you'll likely net a lot more than any savings account out there.


Maximizing your cash back rewards is also another way to save money for an emergency fund. Getting paid for spending money you would regaulary do anyway is a nice incentive. It doesn't matter if you have a large monthly spend like 5k or small like $500 every little bit helps.

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Message 9 of 13
Member

Re: online savings account high interest

I have mySavings Direct at 1.1%. All online, easy to set up, no minimum, and links directly with my checking account. It was very easy to set up.

Message 10 of 13