Savings accounts with online banks

[winb83]

I got over 10 grand parked in a Chase savings account. I'm gonna look to move that into an online savings account and at least get about 1% or so on it instead of the .01% i get now. Discover offers a $100 bonus if you have $15,000 in the account which I could do easily by moving funds from my other savings account with my credit union.

How easy or difficult is it to get your money back from them? I still plan to deal with Chase for checking and credit cards so I'm guessing the only real way to get the money is ACH transfer and walk into a real bank?

 

[dark_magic]

I got over 10 grand parked in a Chase savings account. I'm gonna look to move that into an online savings account and at least get about 1% or so on it instead of the .01% i get now. Discover offers a $100 bonus if you have $15,000 in the account which I could do easily by moving funds from my other savings account with my credit union.

How easy or difficult is it to get your money back from them? I still plan to deal with Chase for checking and credit cards so I'm guessing the only real way to get the money is ACH transfer and walk into a real bank?

Yield calculations (rough, no precision):

$10,000 * 0.0001 = $1
$10,000 * 0.01 = $ 100

According to the rule of 72, it would take you 7200 years and 72 years to double your money at those rates respectively.

$100 / $15,000 = 0.006 ... about .06%

What type of money (purpose) is this? Dry powder? Rainy day fund?

 

[winb83]

Yield calculations (rough, no precision):

$10,000 * 0.0001 = $1
$10,000 * 0.01 = $ 100

According to the rule of 72, it would take you 7200 years and 72 years to double your money at those rates respectively.

$100 / $15,000 = 0.006 ... about .06%

What type of money (purpose) is this? Dry powder? Rainy day fund?

It's an month emergency fund. In theory the money shouldn't be touched and eventually I plan to double it probably next year as I plan to direct all my savings at a house fund this year. for the higher interest I'll also park that money in the same savings account. Right now I have two separate savings accounts and neither earns more than a few dollars per year in interest if that.

 

[dark_magic]

You could do a cashier's check. That will cost a few dollars.

As to the rates of return, it isn't worth it. Whatever gains you netted would be eaten up in taxes and inflation.

 

[mannyrs13]

I got an account with Ally and I can transfer money back and forth online easily. Granted it does take a few days to process but that minimizes impulse spending. As far as the rate of return goes, yeah you're not getting much back in regards to taxes or inflation but if you can use it as just a savings account and have a 401k or Roth elsewhere then it won't hurt.

 

[winb83]

You could do a cashier's check. That will cost a few dollars.

As to the rates of return, it isn't worth it. Whatever gains you netted would be eaten up in taxes and inflation.

1% is better than the .01% I get now. On $15,000 that 1% will buy me 3 video games from Best Buy at no extra cost to me.

 

[GunRanger]

Go with ally. I have one at 1%. It's insured like any other bank and you can just transfer money back and forth with your checking account

 

[Truefan31]

up to you. My emergency fund is in a credit union, where i'm getting over 1%. But I really don't care about it honestly, it's just my emergency fund. I do have an ally account as well for things I save up for, like vacations/car/etc. The rest is in investments.

I hate big banks btw. So I'll always favor credit unions over big banks.

 

[Originalman]

1% is better than the .01% I get now. On $15,000 that 1% will buy me 3 video games from Best Buy at no extra cost to me.

Try those kasasa checking accounts. Some 3.2% to 2.5%.

You get great returns on them. Most won't let you put more than 15k in a checking account. But 10k to 15k a month can give you 20 to 30 bucks a month.

 

[winb83]

Try those kasasa checking accounts. Some 3.2% to 2.5%.

You get great returns on them. Most won't let you put more than 15k in a checking account. But 10k to 15k a month can give you 20 to 30 bucks a month.

I will look into this. I ended up going with Discover for the moment because of the $100 bonus they offered for $15000 by June of this year. They're a pain in the ass because they move money so slow it takes several business days to be accessible so I've still gotta keep several thousand in my old savings accounts incase I need money fast.

 

[Serious]

I got an account with Ally and I can transfer money back and forth online easily. Granted it does take a few days to process but that minimizes impulse spending. As far as the rate of return goes, yeah you're not getting much back in regards to taxes or inflation but if you can use it as just a savings account and have a 401k or Roth elsewhere then it won't hurt.

I transfer money through banks between using Google wallet. It's free and instant

 

[satam55]

I transfer money through banks between using Google wallet. It's free and instant

What advantages does using Google Wallet have over using Paypal?

 

[Serious]

What advantages does using Google Wallet have over using Paypal?

Idk. Google wallet is essentially the same thing I guess. I just find a lot easier then signing into PayPal all the time, I never remember my pw for it.

 

[Ice_MF_Mike]

Ally or capitol one have solid rates for their savings accounts. Very easy to move money to/from them.

Also worth considering govt i-bonds. You cant touch them for a year but the current rate is 2.76%!

 

[winb83]

Still going with Discover. They raised my interest rate to 1.01% APR. I need to add some more money to the account but transfers take forever. YTD I have about $42 in interest payments It's an emergency fund so I'd rather not do government bonds in case it's ever needed.