Capital One 360 Savings Account - Annual Percentage Yield (APY) tracker

[rebound2014]

Discover is at 1.1%. No minimum opening deposit, daily balance or otherwise "minimums" required. No fees whatsoever and you can deposit via mailed check, ACH or wire.

[Moneyklutz]

Ally just bumped up their APY rate to 1.15% on July 1st.. being that the Fed continues to increase the Prime Rate, I'd wager you'll see the others listed in this thread go up as well. 

[Anonymous]

In addition to getting a high yield savings, have you also thought of opening a checking or savings to just get the bank account bonus? There's a post on doctor of credit about this subject. Each bank has a different requirement; like direct deposit, minimum deposit, etc. I think I'm doing the math right, but be sure to correct me if I'm wrong. The goldman sachs has a APY of 1.20%. If you deposit 5K in there, and just let it sit, you'll have $5,060 at the end of the year. With some of these bouses, you could get $200 or $300 per account. If you don't like it, you could close it after a year. It's not much different from people that churn credit cards.

[Anonymous]

In my "high interest" savings account with Capital One, I have between $3,000 - $4,000. I usually do not touch this money. I also have 3 other banks that I have about $6,000 scattered about throughout them (about $2,000 in each). I do this for protection in case one of my accounts gets hacked and the funds get drained. I do not want to put all my eggs in one basket in case of account password steals and account breaches. I also do not touch these other accounts except for my main account with USAA. USAA savings account rate is terrible compared to the higher rate guys. I do love USAA though for other reasons so I will keep USAA as my main bank.

So basically I have Capital One and 2 other accounts that I have funds in that I do not touch. Between all my accounts, I have a total amount of about $8,000 to $10,000 cash value (usually closer to $8,000 or 9,000 depending on montly expenditures).

Basically, according to all of your replies and some of my research, it looks like Goldman Sachs may be the best option to just rest money and gain the most (non risk) interest.

Please keep the suggestions comming. Remember, I am interested in banks that are not artificially raising the interest rates high just to gain new members. I am not interested in constantly chasing higher rates only to have the bank dump the rate once a desired member quota is reached. I would like the best rate banks that have consistently held the highest interest rates over the past 5 years (or longer). The particular suggested bank doesn't have the highest APY, just amount the highest APYs for the longest period of time.

Thank you for your replies.

[Anonymous]

Good.  So you have between 8k and 10k in the bank at all times (as pure cash -- not stocks or bonds or CDs etc.).

A lot of the highest interest accounts you are going to hear about will vary between 1% and 1.25%.  If you do the math, this means that even in the best case scenario, you are making about $100 in interest -- and that $100 is taxable.  So at the end of the day it may be smaller still.  E.g. perhaps $70. 

So a crucial thing to consider is: do I actually care?  Is it especially important to me whether I make $70 a year vs. $78?  This is the spread you are likely to get by choosing accounts based on a 1% vs. a 1.11% rate, say.  Is all the work I do comparing and opening new accounts worth the extra $8?

Also worth considering is whether you'd rather make a lot more -- e.g. $500 or $1000.  You could easily do that by opening a few bank accounts each year that have bank bonuses.  Doctor of Credit is (as the other commenter suggested) a good place to go to find out more about that.

http://www.doctorofcredit.com/a-beginners-guide-to-bank-account-bonuses/

http://www.doctorofcredit.com/best-bank-account-bonuses/

I usually make about $1500 a year that way.

DoC also has a good piece on high interest savings/checking accounts:

http://www.doctorofcredit.com/high-interest-savings-to-get/

This 5% option might be a nice choice if you want to park $5k and leave it there:

http://www.doctorofcredit.com/insight-5-apy-prepaid-card-5000/

[DaveInAZ]

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@Anonymous wrote:

Good.  So you have between 8k and 10k in the bank at all times (as pure cash -- not stocks or bonds or CDs etc.).

A lot of the highest interest accounts you are going to hear about will vary between 1% and 1.25%.  If you do the math, this means that even in the best case scenario, you are making about $100 in interest -- and that $100 is taxable.  So at the end of the day it may be smaller still.  E.g. perhaps $70. 

So a crucial thing to consider is: do I actually care?  Is it especially important to me whether I make $70 a year vs. $78?  This is the spread you are likely to get by choosing accounts based on a 1% vs. a 1.11% rate, say.  Is all the work I do comparing and opening new accounts worth the extra $8?

Also worth considering is whether you'd rather make a lot more -- e.g. $500 or $1000.  You could easily do that by opening a few bank accounts each year that have bank bonuses.  Doctor of Credit is (as the other commenter suggested) a good place to go to find out more about that.

http://www.doctorofcredit.com/a-beginners-guide-to-bank-account-bonuses/

http://www.doctorofcredit.com/best-bank-account-bonuses/

I usually make about $1500 a year that way.

DoC also has a good piece on high interest savings/checking accounts:

http://www.doctorofcredit.com/high-interest-savings-to-get/

This 5% option might be a nice choice if you want to park $5k and leave it there:

http://www.doctorofcredit.com/insight-5-apy-prepaid-card-5000/

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Wow, $1500/yr.? Impressive! The most I ever did was $600. I limit new bank account bonuses for 2 reasons: 1) Direct Deposit requirements. I work for the local county and they HATE changes in payroll direct deposits. I made the 2nd change this year last month and they suddenly claim a "new rule" that the 1st pay after a DD change has to a printed check they mail to me. But I see on that DoC Beginners Guide there's ways to use ACH deposits to get around the DD requirements. And 2) I worry that too many new bank accounts would raise red flags on my Chex/EWS reports. DoC doesn't mention that in his Beginners Guide.You're not concerned about the effect of too many new bank accounts on Chex/EWS/Lexus-Nexis?

And bank new account bonuses are taxable as interest, while credit card spend bonuses aren't. But that's not a biggie, if extra income is going to result in me owing taxes I just figure out how much extra I need to stash in my IRA to eliminate the tax liability.

[Anonymous]

What a great reply Credit Guy in Dixie, thank you! On a side note, look at where Captial One is placed on its offerings for it APY. Ill give you a hint, its not a spot you want to be in.

[gdale6]

Interest rates offered typically are higher if the institution offering them is looking to boost their bottom line. My local bank doesnt need any capital so they never even raised them off the lousy 1/10 of 1% as the fed has been raising the rates.

[Anonymous]

My comments below in blue.  :-)

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@DaveInAZ wrote:

Wow, $1500/yr.? Impressive! The most I ever did was $600. I limit new bank account bonuses for 2 reasons: 1) Direct Deposit requirements. I work for the local county and they HATE changes in payroll direct deposits. I made the 2nd change this year last month and they suddenly claim a "new rule" that the 1st pay after a DD change has to a printed check they mail to me.

I am lucky that way.  At my place of work it is all computerized.  In theory I could change banks every paycheck (every two weeks).  Takes about a minute to make the change.

But I see on that DoC Beginners Guide there's ways to use ACH deposits to get around the DD requirements.

Yeah, they have a dedicated page devoted just to describing which banks permit ACH as a direct deposit and which do not.  And each review of a bank bonus tells you that too.

And 2) I worry that too many new bank accounts would raise red flags on my Chex/EWS reports. DoC doesn't mention that in his Beginners Guide.You're not concerned about the effect of too many new bank accounts on Chex/EWS/Lexus-Nexis?

I went into the bank account chasing "garden" in February of this year, prompted in part by my first  bank account app rejection notice due to too many inquiries.  Aside from hurt feelings it's not a big deal.  Just means you need to stay out of the game for a while.  And I had a LOT of inquiries.  Partly it was Regions fault for screwing up an app and doing way too many inquiries (accident on their part).

And bank new account bonuses are taxable as interest, while credit card spend bonuses aren't. But that's not a biggie, if extra income is going to result in me owing taxes I just figure out how much extra I need to stash in my IRA to eliminate the tax liability.

Pursuing bank account bonsus vs. CC bonuses can be a Both-And.  You open the credit card, make a few small purchases on it, then open a bank account, and use the card to "fund" the bank account, thus meeting the minimum spend req for the card.  Nice way to snap up two big bonuses.

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[toostoosh]

I use Synchrony Bank's High Yield Savings account. I believe that they're at 1.15% currently. Also, they issue an ATM card. They have one of the highest rates that doesn't require a min balance.