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DCU savings rate now 6.17%

Valued Contributor

Re: DCU savings rate now 6.17%


@oldman87 wrote:

@wasCB14 wrote:

If I was going to open a new checking or savings account, I'd be much more interested in getting a straightforward cash bonus than playing APR games with toy balances.

 

Wells Fargo gave me $250 for putting $50 in a checking account for a few months (I think they even only required $25). $250 is worth ~4 years' interest on $1k at 6%, and that doesn't even consider opportunity cost.


I hear this argument all the time, the things is they're not mutually exclusive, you can have $1k making 6.17% APY while going for the BoA SUB, especially SUBs that doesn't require large sums of deposits.

 

Between my 2 Insights, 5 Netspends, 1 Mango, DCU, Premier and WYHY, I have 21k @ 5%+ and 19k @ 4%, about to open another rewards checking for 30k @ 4%, that's $3k+ a year in interest. At the same time, my first batch of deposit account SUBs opened in June/July (7 accounts) just returned a total $1625

 

That sounds like a hassle. I would rather my money worked for me, not the other way around.

 

If I look at my dividend positions in my portfolio, $70,000 also pays me about $5,000 a year without having to do a thing, and that $5,000 is taxed at capital gains rates instead of income. That's also assuming all positions stay flat; if and when I do cash out, the chances those positions are up over a 10+ year period are very high so I'll realize additional gains. My portfolio is diversified enough that risk isn't a serious concern, though I hear that argument from stock-averse people all the time as well.

 

Cash savings are meant for short-term and emergencies, so while more interest is always nice, growing my wealth off of it isn't the goal. The goal is to beat the rate of inflation with it; if I'm doing that, I win. I'm probably in the minority, but I'd rather park it in as few places as is practical with no restrictions on getting at it if I do need it. If I didn't already use DCU for checking, I wouldn't go out of my way for such an inconsequential cap.

Message 11 of 33
Contributor

Re: DCU savings rate now 6.17%


@wasCB14 wrote:

 Wells Fargo gave me $250 for putting $50 in a checking account for a few months (I think they even only required $25). $250 is worth ~4 years' interest on $1k at 6%, and that doesn't even consider opportunity cost.


And then they sold your social security number

| AMEX | DISCOVER | SYNCHRONY | CITI | US BANK | BBVA COMPASS |
Message 12 of 33
Valued Member

Re: DCU savings rate now 6.17%

Anyone know what the interest rate is above 1k if there is one?

Personally I don't mind parking my money in more than one spot, though I understand the adversity for some. I do agree that to a certain extent your money should be working for you, already meeting the rate of inflation, and if it's not, it's time to move your money. However, anything beyond the rate of inflation is bonus, and if you have the ability, warrants a little bit of work (depending on your tax status). Savings isn't just for short term emergencies, or already, ideally it shouldn't be, it's for the future, and rarely do we find mony for free in life, there is almost always a cost. Each person however needs to determine the cost/ return ratio themselves, as often we have different real and perceived valuations of our own time and efforts to accomplish the same thing. Their are also different factors that can affect the return for each individual. Tax status is one I mentioned previously, if your income is already at the tipping point of some arbitrary income number, and your interest gains are significant, you could theoretically lose money. I am nowhere near such a point of concern however, so for me I will take what I can get.

The Beginning Oct 2018 Fico 8

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Current Data Dec 2018 Fico 8








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Message 13 of 33
Frequent Contributor

Re: DCU savings rate now 6.17%

It falls to less than a percent after the first 1k. https://www.dcu.org/personal-banking/savings-reg-shar.html
2017-09-09 FICO 08: EQ 677, TU 640, EX 705
2018-06-16 FICO 08: EQ 688, TU 718, EX 718
2018-11-17 FICO 08: EX 725
2018-11-07 FICO 08: TU 730
Gardening again until... March/April 2019(I want a RAV4)
Message 14 of 33
Valued Contributor

Re: DCU savings rate now 6.17%

So the gotcha is its not worth keeping more than 1000$ in that account *AND* the 5$ ACH fee....

Been pondering going for this one..

 

-J

 

Message 15 of 33
Valued Contributor

Re: DCU savings rate now 6.17%

Definitely don't want to keep more than $1k in there, avoid the ACH fee by initiating ACH from an outside account, I ACH pull the interest as soon as it posts every month from Ally.
Message 16 of 33
Frequent Contributor

Re: DCU savings rate now 6.17%

I transfer a set amount in from PenFed each pay period. Then I collect it all and pay it towards my DCU auto loan.

They also have bill pay, so you can send some out that way, but you might have to move it through a checking account first.
2017-09-09 FICO 08: EQ 677, TU 640, EX 705
2018-06-16 FICO 08: EQ 688, TU 718, EX 718
2018-11-17 FICO 08: EX 725
2018-11-07 FICO 08: TU 730
Gardening again until... March/April 2019(I want a RAV4)
Message 17 of 33
New Contributor

Re: DCU savings rate now 6.17%

If I remember correctly, the first $1,000 earns the premium rate and the additional amount over that gets .25%. It still ends up being a great rate.
Message 18 of 33
Regular Contributor

Re: DCU savings rate now 6.17%

Just signed up going to park $1000
My first card 5/2017

Nfcu 3 cards
Cash 500- $10k-$11.5k-$16.5k/ Cash $11.8/ GoRewards-Platinum-Amex MoreRewards$5.4k-$10k-$5k
Syncrony 5 Cards
Walmart $500-$10k/Marvel $3k-$9k/Tjx $300-$4k/Lowes $3k-$30k\Ebates $5700
Citi 4 Cards
Home Depot $1k-$10k/Tire kingdom $1.3-$3k/Bloomingdales $500-$1500/MacysAmex $2k-5k
Other Banks
StateFarm $6900/Banco $2.2k/Bbva $3k/Target $500-$1.7k/Discover $200\Suncoast CU $15k
Cloc
Nfcu $6000-$15k Penfed $1k
Closed by me
Amex/Deserve/ollo/Amazon/paypal extras
Message 19 of 33
Contributor

Re: DCU savings rate now 6.17%


@DaveInAZ wrote:

@Green456 wrote:

That's $5 per month. Not bad.


$5.141667 per month if you count the pennies & fractions - $61.70 per year divided by 12.

 


Since any money above $1000 only earns 0.25% interest, one does not earn $61.70 interest per year, but "only" $60.07. So the average monthly earning is $5.01.

Message 20 of 33