Good Paying Savings Accounts

[Riverbug]

Starting a separate thread related to a response within an unrelated thread and I'm curious to see what others have found on the topic. I was pretty excited more than a year ago when I came across the 360 Performance Savings account available at Capital One. It offers a fluctuating interest yield which has remained at 4.25% or higher since I opened it. It requires no minimum balance, no time commitment, or any other commitments. The downside, if you consider it one, is that there are not many branch locations (although there happens to be one about 70 miles from our home) so I consider it online-only. I have had no issues with this at all. The mobile app works great. My father also opened an account and is pretty tickled with actually seeing interest payments coming into his account monthly.

Curious what others have found that might be similar. To me, the keys are that there is no minimum balance (or at least minimal balance) required, no time commitment for keeping funds in the account, no restrictions on withdrawing funds, and interest rate needs to be generous compared to typical savings or money market accounts (say in the 4%+ range?). Anyone care to share your experience?

 

[Jason-Texas]

I use Vanguard for my brokerage and savings accounts. I have them linked to my local Bank which I use for paying bills and minimal check writing.

Money market account has a $3k minimum, currently paying 5.3%. You can also buy CD’s out of this account, but no reason at this time. CD’s are paying less. No brick & mortar stores, all online.

 

[Hoopy Frood]

Local banks are around 5.25% for 7 month CD, 4%-5% for savings accounts. I have some money in Capitol One 360 account, but took most of it out when they dropped their interest rates. None of them are spectacular, but better than 0.01% that some places pay.

 

[DaveInTN]

Everbank offers a Performance Savings account currently paying 5.15%. No min bal, no fees. I think they are based in Jacksonville with branches but everything can be done online.

 

[trailrydr]

Still investing in CDs.... got several at 24mos at over 5%. Do the same with IRAs. CFG Bank has good online non-IRA CD rates. Also, Penfeds premium online savings account usually has good interest rate for a cash savings acct.

 

[Second Chance]

The last partial year we had our (substantial) savings in a USAA savings account, it didn't even generate enough interest to trigger a 1099 ($100 threshold). Since we moved all regular savings to Capital One 360 it's making $400 - $500 a month in interest. (We left checking, bill pay, etc., at USAA and can transfer money back and forth online.) Other investments are with various outfits - Vanguard, Primerica, Mass Mutual, Brighthouse Financial (formerly Met Life for the guaranteed annuities), etc. The savings at 360 have been doing better lately than the investment accounts (interest rates are high and the market has been unstable).

Rob

 

[Riverbug]

Local banks are around 5.25% for 7 month CD, 4%-5% for savings accounts. I have some money in Capitol One 360 account, but took most of it out when they dropped their interest rates. None of them are spectacular, but better than 0.01% that some places pay.

You must be very lucky. I found zero local banks paying anything close to 4% on a regular type savings account that does not require significant minimum balance. Otherwise, CD;s are their option but that's not what I was interested in here as those can be gotten anywhere.

 

[Riverbug]

I do also have Fidelity non-IRA account where it's mostly held in mutual funds but if placed in cash "fund" it's currently paying 6.5%. Our US Bank accounts (money market and checking) pay a pittance. But we use them in tandem to move money between them online, which is great.

 

[Hoopy Frood]

You must be very lucky. I found zero local banks paying anything close to 4% on a regular type savings account that does not require significant minimum balance. Otherwise, CD;s are their option but that's not what I was interested in here as those can be gotten anywhere.

Any of those that pay decent interest, loosely speaking , of around 4%-5% only require a minimum balance of $1,000.

 

[Riverbug]

Any of those that pay decent interest, loosely speaking , of around 4%-5% only require a minimum balance of $1,000.

Is that the case for everyone else? Do you local banks offer those rates as we're discussing? (Asking others here.) I wouldn't have been excited to find Capital One if I could have found any local bank offering those kinds of rates. I have just never found one here. Online banking, yes, local banking no.

 

[trailrydr]

The last partial year we had our (substantial) savings in a USAA savings account, it didn't even generate enough interest to trigger a 1099 ($100 threshold). Since we moved all regular savings to Capital One 360 it's making $400 - $500 a month in interest. (We left checking, bill pay, etc., at USAA and can transfer money back and forth online.) Other investments are with various outfits - Vanguard, Primerica, Mass Mutual, Brighthouse Financial (formerly Met Life for the guaranteed annuities), etc. The savings at 360 have been doing better lately than the investment accounts (interest rates are high and the market has been unstable).

Rob

Our substantial savings account at Penfed gets a pretty decent interest too..... well enough that it does produce a 1099. We dont keep any USAA cash accounts, just credit card for INS discount.

 

[Hoopy Frood]

Is that the case for everyone else? Do you local banks offer those rates as we're discussing? (Asking others here.) I wouldn't have been excited to find Capital One if I could have found any local bank offering those kinds of rates. I have just never found one here. Online banking, yes, local banking no.

Both NBKC, and NASB local physical banks have those rates, but also have online access. Nice to work with if you want actual physical access to your money at any point.

Oops, I was off a bit: NBKC offers 3% with no minimum balance, and a 7 month CD at 5.25% and NASB is at 4.06% up to $24,999, and 5% over $25,000, with $100 minimum. They do have 7 month CD's at 5.05% and 11 month CD's at 5.10%. Nothing spectacular, but better than they have been in recent years. But they both have physical buildings/branches.

Bye the bye, I have no financial consideration in any way.

 

[Riverbug]

Both NBKC, and NASB local physical banks have those rates, but also have online access. Nice to work with if you want actual physical access to your money at any point.

Oops, I was off a bit: NBKC offers 3% with no minimum balance, and a 7 month CD at 5.25% and NASB is at 4.06% up to $24,999, and 5% over $25,000, with $100 minimum. They do have 7 month CD's at 5.05% and 11 month CD's at 5.10%. Nothing spectacular, but better than they have been in recent years. But they both have physical buildings/branches.

Bye the bye, I have no financial consideration in any way.

I'm with you there, no vested interest here either. Was just trying to figure out if it's a MN state thing or the location within the state that makes it so anti-competitive with respect to banking interest rates. CD's are pretty ubiquitous, but brick and morter banks that offer good rates on basic savings accounts seems like finding a unicorn based on my experience. Even at 3% that's a pretty good find for you.

 

[Riverbug]

The last partial year we had our (substantial) savings in a USAA savings account, it didn't even generate enough interest to trigger a 1099 ($100 threshold). Since we moved all regular savings to Capital One 360 it's making $400 - $500 a month in interest. (We left checking, bill pay, etc., at USAA and can transfer money back and forth online.) Other investments are with various outfits - Vanguard, Primerica, Mass Mutual, Brighthouse Financial (formerly Met Life for the guaranteed annuities), etc. The savings at 360 have been doing better lately than the investment accounts (interest rates are high and the market has been unstable).

Rob

Until Capital One and the better rates, I always discounted online banking thinking we needed a local branch. Now that we've been doing it a while, I realize how little we need a branch. We still have a savings and checking account at our local bank but only carry enough in them to cover monthly bills where needed. Now days almost every bill we have is autopay to either credit cards or bank draft to checking that has just enough to cover. Should have made the move years ago but live and learn I guess.

 

[Hoopy Frood]

I agree, we do most of our banking online. But...if I need a couple thousand dollars this afternoon, it's very handy having a local branch to zip over to pick it up. How does one get cash from an online account? I've not tried it, and am curious.

 

[Second Chance]

I agree, we do most of our banking online. But...if I need a couple thousand dollars this afternoon, it's very handy having a local branch to zip over to pick it up. How does one get cash from an online account? I've not tried it, and am curious.

USAA lets folks use any ATM (including overseas) and reimburses the ATM fees (with very few exceptions).

Rob

 

[Hoopy Frood]

Ah, that would be handy.

 

[AUImagine]

Not to nitpick, but the threshold of interest to generate a 1099 is $10 (not $100).

Bankrate dot com is a good comparison shopper for savings/Money market rates around the country.

Brokered CDs from the Vanguard/Charles Schwab/Fidelity bunch are running 4-5.4% depending on length. If you can stomach the non-guarantee guarantee of a treasury bill, those pay about the same, but aren’t subject to state income tax in most (if not all?) states and add a nice tailwind to savings vs a CD.

 

[BobbyT]

I use UFB Direct. They have a savings and Money Market. It is at 5.25 with no minimum. Can transfer money between them and my bank in a day.

 

[Riverbug]

I agree, we do most of our banking online. But...if I need a couple thousand dollars this afternoon, it's very handy having a local branch to zip over to pick it up. How does one get cash from an online account? I've not tried it, and am curious.

That's a good point. We still have our local bank account for now so we can get cash there. We transfer enough monthly to pay bills and get cash as needed. Will probably have to hang on to it for that purpose.