topic Re: Looking for HYSA recommendations in Personal Finance

Looking for HYSA recommendations

TomWB — Tue, 10 Jan 2023 10:45:49 GMT

Hello,

I'm a recent graduate, and will start working FT next month, so I want to set up a HYSA before I start. I've never opened any saving account, only had a Chase collage checking account for ~7 years. I would love to keep things simple and open a Chase saving, but the APY is too disappointing. I've looked at several similar posts, but I guess I'm looking at different deciding factors.

Things I'm looking for listed in order of priority:

1. Easy to manually & automatically transfer money to my Chase checking

2. Good customer service

3. Competitive APY

4. Easy to use website/App

Re: Looking for HYSA recommendations

AndySoCal — Tue, 10 Jan 2023 19:52:31 GMT

@TomWB You can use the line below and customize the search to where you live. Click one high yield savings account up at the top of the web page

https://www.depositaccounts.com/

Re: Looking for HYSA recommendations

Jeffster1 — Tue, 10 Jan 2023 22:05:10 GMT

I've been very impressed with my American Express HYSA savings. I also have the American Express Rewards Checking. I recommend both.

Re: Looking for HYSA recommendations

TomWB — Tue, 10 Jan 2023 22:48:29 GMT

Thank you all for the replys. I ends up going with 3 accounts, Amex, Sofi, and Barclays. I haven't deposited money into Sofi and Barclays yet, since I needed to do the Plaid verification for Sofi, and after that I can only get 1.2 APY before next month as I'm not able to set up direct deposit until I start my job (3.75 APY with direct deposit). And for Barclays, they want me to send in personal documents for verification, which I haven't done yet. I'm still deciding last minute whether I want to open the Barclays account, becuase their system seems pretty old, the iphone app is poorly designed. I doubt I'll have a easy time if I need help for my account in the future. So I'm still open to recommendation for an alternative bank.

Re: Looking for HYSA recommendations

Anonymalous — Wed, 11 Jan 2023 05:01:41 GMT

You initially were just asking about a single HYSA. Do you really need a third? If you're starting in the workforce, a checking account that you can use for most of your payments and a HYSA where you can stash extra money is the core setup, and you've got those covered. The next priority would something like an retirement/investment account, which Sofi is also good at. So it sounds like you're in pretty good shape.

Re: Looking for HYSA recommendations

TomWB — Wed, 11 Jan 2023 05:11:39 GMT

@Anonymalous wrote:
You initially were just asking about a single HYSA. Do you really need a third? If you're starting in the workforce, a checking account that you can use for most of your payments and a HYSA where you can stash extra money is the core setup, and you've got those covered. The next priority would something like an retirement/investment account, which Sofi is also good at. So it sounds like you're in pretty good shape.

Yeah I was actually thinking the same. But I currently have ~40K extra cash sitting in my checking. I put 10K in the Amex account, and 5K in SoFi (due to daily limit). And after I start working, I should have roughly 2K extra after tax, rent, living expense per month. Do you think I should stick with 2 savings, or a third is recommended?

Re: Looking for HYSA recommendations

Anonymalous — Wed, 11 Jan 2023 06:31:11 GMT

@TomWB wrote:
@Anonymalous wrote:
You initially were just asking about a single HYSA. Do you really need a third? If you're starting in the workforce, a checking account that you can use for most of your payments and a HYSA where you can stash extra money is the core setup, and you've got those covered. The next priority would something like an retirement/investment account, which Sofi is also good at. So it sounds like you're in pretty good shape.
Yeah I was actually thinking the same. But I currently have ~40K extra cash sitting in my checking. I put 10K in the Amex account, and 5K in SoFi (due to daily limit). And after I start working, I should have roughly 2K extra after tax, rent, living expense per month. Do you think I should stick with 2 savings, or a third is recommended?

I wouldn't get any more. $40K is fine in a single HYSA, far below the FDIC limit of $250K. There's no reason to spread it among multiple accounts. If you're running into ACH transfer limits, that's a problem, though it may be temporary -- banks tend to restrict new accounts, at least for a few months.

Re: Looking for HYSA recommendations

SeaProbe — Wed, 11 Jan 2023 06:31:04 GMT

Another option to consider is Charles Schwab. Their checking account is linked with a brokerage account and have instant transfers (during bank hours) between them with no minimum amounts and no monthly fees.

You could move your spare cash to the brokerage and put it in a money market fund. As of this week, it is paying around 4.25% interest. There is no minimum amount, and buy/sell orders to the fund are executed at close of business if made during market hours otherwise on the next business day.

This is where I park my cash. The rates are almost as good as a CD, and it is easy to move any amount in or out within one business day.

Schwab isn't very popular here, as they only offer a couple of AmEx cards, but as a bank I've been very satisfied.

Re: Looking for HYSA recommendations

DONZI — Thu, 09 Feb 2023 05:13:07 GMT

..of the 3 accounts you've already chosen, apparently the amex is open and 'done'.

This might be an indication of which may satisfy your #1 desire the best.

I agree with @Anonymalous in that there is little reason IMO to bother with more than 1 HYSA -- unless the daily/monthly xfer limits are not suitable.

Based on previous DP read here and elsewhere, Chase may not like seeing money leave. If you're really fond of Chase for your checking and whatnot, maybe talk to them.

You could do something similar to what @SeaProbe mentioned (which IMO, Schwab is a great option) using JP Morgan and something from BlackRock or other cash choices available on the broker side of things. That way, no potential for Chase getting fussy.

Typically the $ xfer process via a brokerage account is smoother and without the limits that will be placed on HYSA accounts in my experience.. and perhaps instantly between JPM and Chase deposit accounts.

Re: Looking for HYSA recommendations

Kforce — Sat, 11 Feb 2023 18:24:46 GMT

Like all questions, it brings up other questions, and "homework".

1) Easy to manually & automatically transfer money to my Chase checking

Almost all HYS accounts will allow you to push money to another bank/CU's checking or savings. Don't have Chase but almost all bank/CU's also allow you to pull money from another institution. This means transfers can be done from either end the (New HYS) account or (Chase)

* Now the issues, most institutions have daily, weekly and/or monthly limits on the amount & sometimes number of ACH transfers allowed.

My most restricted HYS has a 5k/day, 10k/month ACH restriction from that institution. However if I want to pull from another institution, they honor that amount, so the other receiving institution might have 10k/day or allow $250,000-day. Thus the restriction can be less of an issue, depending on where the funds are traveling. If pull/push of small amounts, limits are not of concern, for others something to think about.

What type of daily / monthly limit will work for you?

Ask/check with Chase as to daily/monthly ACH transfer limits on pulls!

Some accounts only allow one time push or pull and others do allow auto transfers to be set up.

Is once a month manually OK or do you need auto transfers ?

This will limit HYS accounts to a smaller set if needed.

Speed of transfers varies depending on "both" sides of the transfer. HYS-A might arrive at CU-1 in a day, and if sent to CU-2 not show it until day 3. Also just because the money arrives, some apply holds on the money. This also differs between institutions, your time/history with each and amount of money being transferred. ( A true YMMV). Usually it is a day faster to push money than pull it. (Not always but most of the time)

How important is speed of transfer?

Some have history of being faster than others!

2. Good customer service

Have not had any issue with about 7 institutions.

Others might have some info for you.

Competitive APY

All go up/down over time. A lot of the high APR places scare me. I wanted to stick with well established institutions with some history. Over many, many years GS-Marcus and Barclays are my favorite. East to use, transfer, and very large tranfer limits. Capital One has been fast, easy and again no issues with limits but lower APR. Barclays, over time has been a higher earner. Have one off brand institution with highest APR but a 5k limit. Value of APR vs speed, reputation, & limits. Another thing to consider is if picking an institution for HYS/CD's or do you also want a checking with them. Barclay's / GS and some are only savings & CD. C1, USAlliant and others have both.

My favorite, competative but not highest APR would be Barclays. (No checking)

Short history but this year higher than Barclay's would be USAlliant.

4. Easy to use website/App

I only use computer so no help with APP side

Had no issues with any institution's with web pages.

Do like Barclays sub accounts for separating savings for my daughters.

My account, but separate bags of money

Re: Looking for HYSA recommendations

AndySoCal — Thu, 16 Feb 2023 15:05:50 GMT

@TomWB I was with a bank (US Bank) who has savings rates on liquid accounts similiar to Chase Bank. I was moving money to other banks like Discover and Capital One at that time. Typically those transfers would take 2 or 3 days sometimes longer to complete. The thought occured to me why move the checking account to one those banks maybe somewhere else. The advantage if it was with Discover or Capital One the transfer would be immeadiate not the 2 or 3 day lag time. Also I investigated the ATM network where I could withdraw cash without a fee if needed. So I ended up moving the checking to Discover in part due an ATM was a few doors away from my home. The main reason was I had the banking relationship with Discover and their customer service is very good in my experience. What I would suggest you might want to look at a local credit union or bank near you that pays better rates than Chase. You can use depositaccounts.com to help with the research. Some will even help you move the money over. There is also direct deposit change and any auto payments where you are using your account number and routing have to be updated plus bill pay to setup. After two years plus of doing this it has worked out well for me. This only a suggestion.

Re: Looking for HYSA recommendations

Anonymous — Thu, 16 Feb 2023 05:38:30 GMT

There are a few institutions to be a little careful with, I think mysavingsdirect was one. These do not allow external ACH, all pulls and pushes must initiate on their side limiting you to whatever limit they set. While (at the time) the rate was good, I closed it because of the inconvenience, and had to push the money out to do so....

Not quite comparable, but I am very slightly amused by those saying 1 HYSA is enough. A lot of other people would say that about credit cards!

Re: Looking for HYSA recommendations

TomWB — Thu, 16 Feb 2023 06:18:04 GMT

@Anonymous wrote:
There are a few institutions to be a little careful with, I think mysavingsdirect was one. These do not allow external ACH, all pulls and pushes must initiate on their side limiting you to whatever limit they set. While (at the time) the rate was good, I closed it because of the inconvenience, and had to push the money out to do so....

Not quite comparable, but I am very slightly amused by those saying 1 HYSA is enough. A lot of other people would say that about credit cards!

I agree with you. After doing some researches, I have to say arguments for opening multiple HYSAs is definitely more convincing than arguments against. A few pros I gathered are:

1. Bank can lower the rate at any time, so not a good idea to put all eggs in one basket.

2. Sign up bonus.

3. Not really a pro, but many HYSAs don't have maintaince fee.

Re: Looking for HYSA recommendations

AndySoCal — Thu, 16 Feb 2023 15:05:24 GMT

@TomWB I suggest put part of the money in HYSA for emergency purposes. Aslo, you may want to think about CD to lock in the higher rate with some othe rest of the money.

Re: Looking for HYSA recommendations

keekers — Thu, 16 Feb 2023 18:51:09 GMT

@AndySoCal wrote:
@TomWB I suggest put part of the money in HYSA for emergency purposes. Aslo, you may want to think about CD to lock in the higher rate with some othe rest of the money.

Agree with @AndySoCal and I would go one step further...short term CD ladders (12-15 months) to increase your liquidity. Effectively having a portion of your $ become available every 3 months.

Re: Looking for HYSA recommendations

butterpecan — Sat, 24 Jun 2023 21:09:27 GMT

@TomWB The French Bulldog discover card! Omg. I love it.