Goldman Sachs vs. Discovery Savings acc?

Facebook / Mktg Mymothersa
Nov 14, 2017 31 Comments

I managed to gather $60K so far... not a huge amount of money compared to some rich pol here...

I’m trying to decide between Goldman Sachs and Discovery Savings account which both have more than 1% interest rate.

Seems like putting my money into Chase savings is so stupid because it only gives me 0.01% interest rate.

Also, if I move all my money from Chase to another account, would it effect my chance in getting Chase Freedom card?

Please help me out wise ppl...

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TOP 31 Comments
  • EY / Mgmt rmk5
    What are you saving for? Moving money out of a Chase checking account won't affect your chances of getting the Chase Freedom card. What is your credit score? That card is a relatively easy card to get.
    Nov 14, 2017 11
    • EY / Mgmt rmk5
      It's all about risk tolerance. I'd stash some away in savings and invest the rest if I knew for sure that I was 3-5 years away from buying. But buying good low cost index funds at Vanguard is a good way to go. Just pick 3-4 big highly rated funds
      Nov 14, 2017
    • Microsoft **Ptr++
      If you're already renting and know for sure you're gonna live in the valley, I would actually recommend buying a townhouse or something similar for around 500-600K now with the 60K down payment (you don't really need 20% down). This will put your "rent" towards equity in the house. You can write off property taxes and mortgage interest to reduce you tax bill and use all the appreciation over the years on this first house towards your next house. Also, it looks like you really need to talk to someone who understands money matters. Just ask around and court suggestions in person and read online and familiarize yourself with financial mumbo-jumbo. It will feel overwhelming at first but you'll get a hang of it quick.
      Nov 14, 2017
    • EY / Mgmt rmk5
      This is good advice by **Ptr++
      Nov 14, 2017
    • Facebook / Mktg Mymothersa
      OP
      Thank you so much!
      Nov 14, 2017
    • Surprised to actually see good advice on here more often than not it’s snarky, you suck attitudes
      Nov 15, 2017
  • Intel out&about
    Ally Bank savings account
    Nov 14, 2017 5
    • Amazon 00DgXC
      The best
      Nov 14, 2017
    • Yes it’s awesome
      Nov 14, 2017
    • Microsoft
      lqMc85

      Microsoft

      PRE
      amazon
      lqMc85more
      Why... how much savings percent do they offer?
      Nov 15, 2017
    • Amazon 00DgXC
      1.2%, you can get .1% higher elsewhere but Ally has a much better site. It's not worth the extra .1% to go elsewhere.
      Nov 15, 2017
    • Amazon Snapcrackl
      I have my emergency fund stashed there at 1.25%. I love ally because they raise my APY every time the market rate rises (to be fair though, I have no idea if other banks do this, too).
      Nov 15, 2017
  • Microsoft **Ptr++
    Do you need access to the cash in the short term? If not, you're actually loosing money to inflation if you put it in a savings account. I would recommend Vanguard Index fund with low fees if you have some risk appetite. If it's above your purchase price you can always sell it and get access to cash if you need it. Chase CC will depend solely on your credit score. Sign up for Credit Karma and see if you have a good score. Any score > 700 should get you chase freedom card. For Chase Sapphire Reserve(highly recommend) you might need a score > 760.
    Nov 14, 2017 2
  • Microsoft / Eng FUBAR U
    All the people telling you to invest your house money are fucking wrong. There is a moderate risk the market may crash in the next 3 yrs and that would mean youre stuck renting.

    The market wins long term (10+ years). Short term (3 yrs) is a pure gamble. The cardinal rule of investing is to never invest a dollar you cant afford to lose.

    I have 1.3% in a barclays savings acct. I think thats the best rate readily available today. Put your money there and invest only after you buy a home AND build up an emergency cash fund (at least 3 months of expenses)
    Nov 14, 2017 5
    • Amazon 00DgXC
      I think that's right, your 1.3% is the highest. I picked Ally at 1.2% because of their better interface and super fast funds transfer. One business day from click to the money arriving in my checking account at another bank.
      Nov 14, 2017
    • Microsoft **Ptr++
      Agree about the cardinal rule. My advise about investing it was conditional to 'if you have a risk appetite'. I should have clarified further. I would actually say that there is a high risk the market will crash in the next 3 year. Quite high actually. I stand by the statement of using savings account only to park cash short term though. Savings account in a post Ben Bernanke world is a joke. And they tax those measly gains as well so you have to deal with that additional headache come tax time. If safe investment is a concern, for a 3 year term I'd rather do treasury or AAA rated muni bonds. Assuming we can trust the ratings agencies for muni bonds (which I don't).
      Nov 14, 2017
    • Microsoft / Eng FUBAR U
      Yeah, long term savings in a savings acct is bad. But if getting unlucky means you cant buy a house, not a risk you should take.

      I own a ton of VOO in light of a pending crash, cuz I can just hold it through the lows. My home is half paid off already.
      Nov 14, 2017
    • Microsoft **Ptr++
      VOO is one of the best. As you put it, for long term investors highs-lows don't matter. The key is 'time in the market, not time the market'. In the long term low-fees index funds will beat most mutual funds and other so called excellent investment opportunities.
      Nov 14, 2017
    • Chase / Other
      4@+)0tgjjv

      Chase Other

      PRE
      Bloomberg
      4@+)0tgjjvmore
      Very good advice here , we're either of you on Wall Street or in finance?
      Nov 15, 2017
  • Google flwH01
    At the very least, please invest your money in something better than a savings account. You are literally losing money every year from inflation by parking it there.

    What’s your goal? If it’s to have a safety net, you’re better in treasuries or a Gov bond fund.
    Nov 14, 2017 1
    • Amazon 00DgXC
      I keep three months expenses in an Ally savings account. I have another nine months expenses in a Vanguard short term bond fund. After that it's all in Vanguard equity indexes. So I have a year of savings in cash or short term bonds.

      Ally can move money into my checking account at another bank in ONE DAY. You can't get your tbill money out that fast and you are getting LESS interest on your 91 day tbill than the 1.2% Ally pays.
      Nov 14, 2017
  • OP, I did the same mistake like you. Had saved 90K in a savings account for the past few years without investing a single penny. Too bad that we did not have Blind earlier. Just invest in an s&p 500 index fund !
    Nov 14, 2017 0
  • Microsoft Facts
    I have my money parked in a discover savings account. No regrets. They keep increasing my rates too which is cool. Went up from .85% to 1.15%
    And no, chase won't punish you for moving money from their accounts. I did the same thing and still got a chase sapphire reserve card.
    Nov 14, 2017 0

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