View Full Version : High Yield Savings Account options?
Hey financial gurus,
I'm interested in different options to store money at a high interest, yet that can be turned liquid quickly. My credit union has some SmartCD thing right now where you need to start the CD with at least $2,000, and can take money out, ONE TIME, with no penalty, as long as you leave a minimum of $1,000 in the CD. I'm looking for something similar. Basically I realize that there will usually be some sort of penalty to remove money. I'm trying to strike the best balance that I can. Essentially, I've got money set aside for emergencies, but I'd like to have it working for me in the mean time instead of just sitting in a regular savings/checking account. This money needs to be readily liquid however since it is emergency money and if I ever need it, I'll need it right away.
What do you business guys do with extra capital you have stashed away as a safety net to have it work for you in the mean time?
CD rates blow big time.
I'm interested in this as well though. I was just thinking of dumping a bunch in my Roth 401k and forgetting about it. I'll just waste it on another awesome toy
Great-Kazoo
08-08-2013, 23:06
Hey financial gurus,
I'm interested in different options to store money at a high interest, yet that can be turned liquid quickly. My credit union has some SmartCD thing right now where you need to start the CD with at least $2,000, and can take money out, ONE TIME, with no penalty, as long as you leave a minimum of $1,000 in the CD. I'm looking for something similar. Basically I realize that there will usually be some sort of penalty to remove money. I'm trying to strike the best balance that I can. Essentially, I've got money set aside for emergencies, but I'd like to have it working for me in the mean time instead of just sitting in a regular savings/checking account. This money needs to be readily liquid however since it is emergency money and if I ever need it, I'll need it right away.
What do you business guys do with extra capital you have stashed away as a safety net to have it work for you in the mean time?
Non metallic coffee can, 24" under ground. Hypothetically speaking, of course. In an area that is not slated for construction within the next 5 years.
I think CD rates blow also, but that was the best example I could think of since I don't really know what's out there. I have a feeling there is no such unicorn as a high interest rate product to store money, yet have it immediately available for use if needed. However, I have enough that I need it to do something that is better than nothing.
Jim, a coffee can isn't any better off than a bank in this situation.
BushMasterBoy
08-09-2013, 02:39
You could buy silver coins, rounds, or ingots. Usually easy to sell and if inflation soars silver goes right up with it. If the SHTF it would probably be a good barter item, if paper money was worthless. If you don't like silver, buy some gold...
Great-Kazoo
08-09-2013, 06:37
I think CD rates blow also, but that was the best example I could think of since I don't really know what's out there. I have a feeling there is no such unicorn as a high interest rate product to store money, yet have it immediately available for use if needed. However, I have enough that I need it to do something that is better than nothing.
Jim, a coffee can isn't any better off than a bank in this situation.
perhaps, but you can withdraw it anytime you like. W/OUT .gov penalties.
Bailey Guns
08-09-2013, 06:39
"High Yield Savings Account"?
"High Yield Savings Account"?
High yield for the government.
Bailey Guns
08-09-2013, 06:51
Whater rates up to now? 1%? 1.03%? With like $25k minimum deposit?
From 1ST Bank
Time Savings Account
Term Interest Rate Annual Percentage Yield
91 Day Time Savings 0.10% 0.10%
1 Year Time Savings 0.20% 0.20%
2 Year Time Savings 0.30% 0.30%
The interest rate and APY may change every Wednesday and on the first business day of each month. Multiple deposits may be made with no minimum deposit required. Additional deposits during the term do not change the maturity of an account. There is a $5.00 service charge per term when the balance falls below $100 on the 91 Day Savings Account. The service charge is $5.00 per quarter when the balance falls below $100 on the One Year Savings Account and on the Two Year Savings Account. Children under 18 years of age are exempt from these service charges.
Learn more »
Time Deposit Account
Term Interest Rate Annual Percentage Yield
91 Day Time Deposit 0.10% 0.10%
182 Day Time Deposit 0.15% 0.15%
1 Year Time Deposit 0.20% 0.20%
2 Year Time Deposit 0.40% 0.40%
3-1/2 Year Time Deposit 0.50% 0.50%
5 Year Time Deposit 0.90% 0.90%
The interest rate is fixed for the term of the account. The interest rate and APY offered for new accounts may change every Wednesday and on the first business day of each month. Minimum deposit is $500. Single deposits only.
Learn more »
Premier Time Account
Term Interest Rate Annual Percentage Yield
91 Day Premier Time 0.15% 0.15%
182 Day Premier Time 0.25% 0.25%
1 Year Premier Time 0.30% 0.30%
2 Year Premier Time 0.50% 0.50%
3-1/2 Year Premier Time 0.60% 0.60%
5 Year Premier Time 1.00% 1.00%
The interest rate is fixed for the term of the account. The interest rate and APY offered for new accounts may change every Wednesday and on the first business day of each month. A minimum balance of $10,000 is required. If the balance of the account falls below $10,000, the rate paid on the account will be the Regular Savings rate. Single deposits only.
dirtrulz
08-09-2013, 07:17
We have some sort of savings account through chase I think. Last the wife told me it was around 5 percent, and it works like a regular savings account, might be worth a look.
eneranch
08-09-2013, 07:24
5% -- no way ; try 0.05%
dirtrulz
08-09-2013, 07:34
5% -- no way ; try 0.05%
Apparently you do not have the same account with them, I do know how to read and know the difference between 5 an .05. So unless you are going through our mail to look at our accounts, you have no idea what you are talking about. Do you honestly think the idiot behind the counter at your local bank knows all the programs their bank offers. Do some real research and call the main office to get some real answers.
i just looked and Chase rates are no better than 1ST Bank.
eneranch
08-09-2013, 07:37
Apparently you do not have the same account with them, I do know how to read and know the difference between 5 an .05. So unless you are going through our mail to look at our accounts, you have no idea what you are talking about. Do you honestly think the idiot behind the counter at your local bank knows all the programs their bank offers. Do some real research and call the main office to get some real answers.
Please enlighten us with the facts !!
I would LOVE to get 5%
Bailey Guns
08-09-2013, 07:39
Apparently you do not have the same account with them, I do know how to read and know the difference between 5 an .05. So unless you are going through our mail to look at our accounts, you have no idea what you are talking about. Do you honestly think the idiot behind the counter at your local bank knows all the programs their bank offers. Do some real research and call the main office to get some real answers.
Dude...you're not getting 5% on any type of bank savings account.
American Express has a high yield account - it pays .85 on $10K, according to their website you can earn $434 over 5 years with $10K invested.
https://personalsavings.americanexpress.com/savings-product.html?extlink=ps-us-PersonalSavings-PS000SA
eneranch
08-09-2013, 07:43
5% cash back is all I found --- https://creditcards.chase.com/freedom/Activate.aspx
Far cry from a 5% Yield on Savings
Bailey Guns
08-09-2013, 07:44
Chase is paying .15% on savings balances over $1M. Chase Rates (https://www.chase.com/index.jsp?pg_name=ccpmapp/individuals/savings/page/chase-plus-savings-rates)
CDs aren't much better. .9% on a 120 month CD with a balance of $1,000 to $10,000. Chase Rates (https://www.chase.com/index.jsp?pg_name=ccpmapp/individuals/cds/page/certificate-of-deposits-rates)
5% cash back is all I found --- https://creditcards.chase.com/freedom/Activate.aspx
Far cry from a 5% Yield on Savings
Yeah, and that is a credit card where they're probably nailing you for 20 percent interest so they're still clearing 15% minus admin costs.
Bailey Guns
08-09-2013, 07:46
5% cash back is all I found --- https://creditcards.chase.com/freedom/Activate.aspx
Far cry from a 5% Yield on Savings
And they aren't paying that 5% (limited time and limited stores) back by paying 5% on savings accounts.
eneranch
08-09-2013, 07:48
And they aren't paying that 5% (limited time and limited stores) back by paying 5% on savings accounts.
^^^ What he said [beatdeadhorse]
dirtrulz
08-09-2013, 07:53
You need to do some real legwork, life exists off the internet you know. Not everyhting can be googled.
Its an online savings account. We set it up 3 or 4 years ago. We had to call them to get the offer. Who knows whether you can still do it or not, that is why I said it may be worth some research. The only way to access it is basically online, the local branch does not even show it on our records. I find it so funny that all of you are so sure you know it all when I have the account paperwork at home that says differently. There are many options out there if you are willing to do a little digging. Etrade used to have some really goods deals, dont know what they are offering now. Open an etrade account and put your money in a mutual fund, some are doing really well right now, I have a couple that are doing over 25% so far this year with a life avg of 15%, and you can put money in and take it out whenever you want for etrades fee, which isnt very much. Honestly putting your money in a bank just guarantees is will never grow.
Bailey Guns
08-09-2013, 07:59
A mutual fund account isn't the same as a savings account. CD rates in 2010 were in the 2% - 2.5% range. You may be earning 5% on a mutual fund (in which case you're doing pretty damn good). You are not earning 5% on a savings account like you initially stated. I don't have to see your statement to know that.
It doesn't have to be a savings account. I just want some where to put money to work, and have it be accessible. Silver would not be liquid enough.
My buddy mentioned a credit union up near Loveland or ft Collins that offered close to 5% on a savings account or maybe even a checking account. Been a couple years but it was definitely up near 5%, not .05 as that is all I get now....if I'm lucky.
dirtrulz
08-09-2013, 08:14
Where did I say the chase account was a mutual fund? Etrade also does savings accounts. I guess I should have made it more obvious that I changed subject a little when I went to funds. I have quite a few funds that are doing well over 5% life avg. The wife just told me it went down to 3.75 a few months ago, which is probably still impossible.
Heres an interesting site that offers 1% Smartypig.com
If you are putting your money in a bank and actually expect it to grow you are kidding yourself.
Not everything can be googled but it's an online account? [Eek3] How about you share the details and help people out instead of just saying "hahaha fuckers I get this much on my account but [fyou] on how you can get the same."
I went to bank rate's site and the best I can see is 1% on a 10k initial deposit. http://www.bankrate.com/funnel/savings/savings-results.aspx?local=false&IRA=false&prods=33&ec_id=m1017108&ef_id=UJrdZQAADh2G3i-u:20130809140443:s
How liquid does it need to be? I'd see if your bank/CU offers investments and see if they have a T-Bill fund you can get into if risk and volatility are your concerns. It would only take a couple of days for funds to be transferred to your checking or savings and the only risk on them are the US gov't going belly up. If you want immediate access to cash, I'd go with the old mayo jar since a less than 1% rate may not be worth the risk associated with bank failure.
kawiracer14
08-09-2013, 08:20
I use Emigrant Direct for a "high yield" savings account and that gives 0.5% .... you ain't gonna find anything that gives any real results in a Savings Account.
dirtrulz
08-09-2013, 08:22
It doesn't have to be a savings account. I just want some where to put money to work, and have it be accessible. Silver would not be liquid enough.
How liquid do you need it? Will you need instant "oh crap" access or could you wait a day or two. Scottrade does 7 dollar trades, not sure what they want to send you money but that would be a good option. Pre-tax options are not good for access as you will pay taxes and high fees. Post-tax retirement accounts are not bad, small fee to pull your money and a couple of days wait. As long as you pick good investments and leave your money their long enough you will make enough to pay for any fees and still come out ahead.
Prices on precious metals were going down, have not checked lately. You wont get top dollar selling those if you need money fast.
Dont ingore the cash back offers on your cards. Pay your bills with the card and keep it paid off every month. No interest, no fees, free money.
If you want real advice spend a few bucks and talk to a financial adviser that is up to date on all that is out there.
dirtrulz
08-09-2013, 08:31
Not everything can be googled but it's an online account? [Eek3] How about you share the details and help people out instead of just saying "hahaha fuckers I get this much on my account but [fyou] on how you can get the same."
Yes, there are things that happen online that cant be googled, amazing, I know. I dont know if chase still offers it, I just threw it out there as a possible option and you guys said it was impossible.
I guess I could spend hours on the phone an emails to find you guys the best possible rate, and maybe you could just send me all your info and I could go ahead and fill out the paperwork for you too, that might make you happy.
Money market account tied to a stock portfolio is the only way to go.
Money market account tied to a stock portfolio is the only way to go.
Who do you recommend? Minimum balance? What kind of returns can you expect?
funkymonkey1111
08-09-2013, 09:31
I get 12% on my secret, nobody can see it, doesn't show up at my local branch accounts. but, it's not on google, so don't bother with any questions.
Bailey Guns
08-09-2013, 09:33
[Coffee]
This isn't retirement funds. This is money saved per door for rental property. If I've got a grand per door for emergencies, plus a bulk fund for emergencies and other investments, I want it working if possible but it can't be locked up in some retirement fund. This is business money. I have a cash back card already for personal accounts, thanks for suggesting that though as it is solid advice.
Summit Bank and Trust (there's one at hwy7 and i25) has 2.01% on a checking account up to 20k balance. That's as good as I've seen anywhere in a long time. https://www.summitbt.com/#/personal-checking
ChunkyMonkey
08-09-2013, 10:00
We have some sort of savings account through chase I think. Last the wife told me it was around 5 percent, and it works like a regular savings account, might be worth a look.
You are mistaken.
ChunkyMonkey
08-09-2013, 10:01
This isn't retirement funds. This is money saved per door for rental property. If I've got a grand per door for emergencies, plus a bulk fund for emergencies and other investments, I want it working if possible but it can't be locked up in some retirement fund. This is business money. I have a cash back card already for personal accounts, thanks for suggesting that though as it is solid advice.
Normal checking will do. $5 a year in interest is not worth your time to shop around for.
TheWeeze
08-09-2013, 10:05
Check with credit unions. There are a lot that do not really offer anything special, but there are a few (Mutual First in Omaha, NE, www.mutualfirst.com) that offers 3.01% on a checking account up to $15,000 if you meet their standards, which include a direct deposit, and 12 transactions on their check card every month. So you'd pretty much have to use it as your main account.
TheWeeze
08-09-2013, 10:07
If you can get away with funding emergencies out of your main account only to stock it back again after selling a some funds, I'd recommend mutual funds all the way. If you can find one earning 5-10% I'd take that all day every day.
Who do you recommend? Minimum balance? What kind of returns can you expect?
Fidelity - just because I use them for other things and they are easy to deal with - with their stock MMA I think its .9% but if you have other accounts with them and a high enough balance they will offer you all sorts of 'custom' options. Again this is only if you need it super liquid. If you can handle a 3 day delay then just put it in a trading account and the sky is the limit (on both losses and gains, but anyone who is not making well over 7% these days isn't trying hard enough) - Fidelity allows you to write checks out of there as well with the right account.
Now we're talking. I'm going over to my credit union today as they have external finance people in house with other options to explore.
dirtrulz
08-09-2013, 12:31
You are mistaken.
Whatever you say, good thing you are around to tell me that. I bow to your all encompassing knowledge of things that have nothing to do with you.
RblDiver
08-09-2013, 12:59
I'll point out that high (read: 2% or greater) interest rates for savings would be pretty darn unlikely at this point in time. The fed discount rate right now is 0.75%, so why would they want to offer you a higher percentage than that. If somehow you had a guaranteed rate from beforehand, consider yourself lucky.
ChunkyMonkey
08-09-2013, 13:35
Whatever you say, good thing you are around to tell me that. I bow to your all encompassing knowledge of things that have nothing to do with you.
Don't be so butt hurt for being wrong. I am in banking and even at credit union or mutual saving side, 5% is simply impossible. Long term CD aren't even closed. High yield bond or junk bond with bbb or baa rating is barely in the 4%. Maybe instead of a regular saving acct it was Detroit municipal bond that was issued after the bankruptcy. :)
RblDiver
08-09-2013, 13:54
Maybe instead of a regular saving acct it was Detroit municipal bond that was issued after the bankruptcy. :)
Hell, they could offer 100% bonds and I'm sure people still wouldn't get 'em!
(In other news, too bad that your next post'll ruin your fun post count of 5,555!)
ChunkyMonkey
08-09-2013, 14:02
Hell, they could offer 100% bonds and I'm sure people still wouldn't get 'em!
(In other news, too bad that your next post'll ruin your fun post count of 5,555!)
It was much higher before the server crash lol
Yeah, 5% sounds wayyyyy too high.
Junk rated Municipal Bonds are running little north of 5 right now.
Even corporate B-/B3 to Caa/CCC maybe running near 5%.
My advice is just open a money market account with discount brokers, and buy load free index funds (etf) once in a while.
ETA: Some had good luck with P2P lending. I am not huge fan of it, but you might want to look into it.
Some people still have %5 savings accounts from back when that was average and they are contractually locked in. I know one guy with %8 as long as his account doesn't go below 1k they can't move his rate
I know one guy with %8 as long as his account doesn't go below 1k they can't move his rate
He's a lucky guy! -and I bet the bank watches his minimum balance like a hawk, just hoping it dips below 1K.
Years ago I had a checking acct. at 1st Bank that paid way more interest than their saving's accts. The coffee can idea isn't as crazy as it used to be. You're not losing as much these days and you know where you can find it when you need it. [dig]
I have a savings account with ING now it's CapitalOne 360 they're currently paying .75% interest with no minimums. If you want to trade stocks you can also open up an account with them through Sharebuilder and have it linked. They have an ongoing promotion for new accounts.
A $25 bonus for new accounts with an initial deposit of at least $250. The $25 bonus starts earning interest upon account opening, but is unavailable for withdrawl for 30 days. Current rate is .75% APY. You can also earn $20 for each referral you make.
Current banks rates.
http://finance.yahoo.com/rates/deposit/savings
Prena, P2P is what got us to this point in the first place. I appreciate the suggestion because it is outside the box and good to go; just not the right fit for this money. Lots of good suggestions guys. I think I'll end up with something guaranteed, but with crappy rates.
I thought of a better example for usage to get the right kind of ideas. It'd be like if I was putting all the damage deposits aside in an account so they do something during the duration of each lease. If I need to refund a damage deposit, I can't have people hold on while I try to get spot +2 on silver, or have a partner lender pay me back, or have less than I need because I lost it in a bad move in the futures market.
Have you considered a Roth IRA? You can direct the funds in a lot of places. You can withdraw the CONTRIBUTIONS anytime tax and penalty free, just not the investment earnings before you're 59.5.
I'm not really interested in money that I can't use for another 30 years. Plus, this is business money.
Not to mention that I think there are limits on contributions every year.
I'm not really interested in money that I can't use for another 30 years. Plus, this is business money.
Not to mention that I think there are limits on contributions every year.
I gave the information based on what I read in the OP of investing 2K and I missed the business part.... If it's business that's different. If you are self employed with a small business, you can open a SEP. This may be something you want to look into:
http://www.dol.gov/ebsa/publications/SEPPlans.html
BTW, Did you read my post? In a Roth IRA you always have immediate access (maybe up to a couple days wait depending on the institution) to your contributions. Unless you roll in money from a traditional IRA, then you have to wait 5 years to touch that without incurring penalties. You're talking about investing $2K, if you contribute 5K in to a Roth (max contribution limit), you can withdraw 5K of that money at any time. So if you do the max every year, in three years you'll have access to 15K of relatively liquid money with no penalties or tax to get it out, since you already paid the tax on it. You just cannot withdraw the investment earnings on that money without paying penalties. So you still have access to most of your money, but you're earning much better interest since you have better investment options. This doesn't sound like it would work for you anyway.
Prena, P2P is what got us to this point in the first place. I appreciate the suggestion because it is outside the box and good to go; just not the right fit for this money. Lots of good suggestions guys. I think I'll end up with something guaranteed, but with crappy rates.
I thought of a better example for usage to get the right kind of ideas. It'd be like if I was putting all the damage deposits aside in an account so they do something during the duration of each lease. If I need to refund a damage deposit, I can't have people hold on while I try to get spot +2 on silver, or have a partner lender pay me back, or have less than I need because I lost it in a bad move in the futures market.
Oh nice. It is good to hear another success story on P2P lending.
To be frank, I do not think there is sure thing in terms of investment/savings these days. Look at what happened to depositors during 2009, and look at the small city municipal bonds.
If you are planning to take little more risk, there are plenty more investment to play with.
Currently, I am LONG on AMD and Wendy's. Not as doing as good as I wanted, but currently doing fair relative to risk vs average indices.
I am doing Research on RiteAid. Just on a possible leverage buyout analysis took me about 8 man hours. :(
My point is, I can get investment ideas from people, but I do my own analysis (also DD).
I do this full time now.
This may be something you want to look into:
http://www.dol.gov/ebsa/publications/SEPPlans.html
BTW, Did you read my post? In a Roth IRA you always have immediate access (maybe up to a couple days wait depending on the institution) to your contributions. Unless you roll in money from a traditional IRA, then you have to wait 5 years to touch that without incurring penalties. You're talking about investing $2K, if you contribute 5K in to a Roth (max contribution limit), you can withdraw 5K of that money at any time.
I'm not sure who said 2k (it might have been me) but I'm looking at investing $10,000+. I understand the ROTH IRA pretty well, and don't want to go that way because all of the profit you make must stay inside the IRA. I can't use any of the profits made to invest into future business without the money being locked up in the IRA.
Oh nice. It is good to hear another success story on P2P lending.
To be frank, I do not think there is sure thing in terms of investment/savings these days. Look at what happened to depositors during 2009, and look at the small city municipal bonds.
If you are planning to take little more risk, there are plenty more investment to play with.
Currently, I am LONG on AMD and Wendy's. Not as doing as good as I wanted, but currently doing fair relative to risk vs average indices.
I am doing Research on RiteAid. Just on a possible leverage buyout analysis took me about 8 man hours. :(
My point is, I can get investment ideas from people, but I do my own analysis (also DD).
I do this full time now.
I do realize that this requires more involvement than just inquiring on-line. I like to ask on here so guys like you can clue me into things I have no idea about, and get me thinking in different directions.
I'm not sure who said 2k (it might have been me) but I'm looking at investing $10,000+. I understand the ROTH IRA pretty well, and don't want to go that way because all of the profit you make must stay inside the IRA. I can't use any of the profits made to invest into future business without the money being locked up in the IRA.
I do realize that this requires more involvement than just inquiring on-line. I like to ask on here so guys like you can clue me into things I have no idea about, and get me thinking in different directions.
For a 10k, I would open a discount brokerage account, which is money market (ex TDAmeritrade, Etrade, etc).
I think other people talking IRA or ROTH is a great idea as well. I think you should consider putting about 20% into it? (talk to your cpa and/or advisor for tax advice prior).
Here is why.
I would open an regular money market account w/ discount broker with fair annual rate, and you can also invest/trade if you desire.
IRA/ROTH is important , because it is tax deferred (for IRA), and tax free (ROTH). It is a retirement vehicle.
I use IRA to mainly "Trade" and use fund in regular acct (money market) to "Invest"
I do "Trade" on a regular account as well, but I try my best to limit it due to tax reasons.
EXAMPLE
I had to sell some portion of Sprint earlier than I wanted to last year , and had to pay much higher tax rate than capital gains taxes.
IF I had it on IRA/ROTH, I would not worry about selling the stock any time.
TAXES
Capital gains tax= 15% (if you hold it for more than 365 days).
Investment Income tax= Rate varies depends on your tax bracket (if you hold less than a year).
LIQUIDITY
Of course, IRA/ROTH is not as liquid. Tax+Penalty for early withdraw.
Regular account, If your fund is just in money market, you can take your money out within 1-2 business day into your checking.
If you Sold the stock and want to withdraw, it takes T+3 PLUS 1-2 business day. (total of approx 5 days) into your checking.
Let us know if you have specific questions.
We invest in real estate. I don't want money tied up in an IRA because when we sell to invest in something better, we don't want that investment to be trapped in an IRA.
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