Citi bank savings interest rate
Anybody tried moving their money here? How is their service and can you move money in and out easily? I dont want to throw that money into the market right now which looks into a turmoil, probably after the election. Currently I see it is offering the highest interest rate of 0.9% . These are the top rates currently. Best Overall Rate: Vio Bank - 0.91% APY High Rate: Citibank - 0.90% APY High Rate: Ally Bank - 0.80% APY High Rate: American Express National Bank - 0.80% APY High Rate: Discover - 0.80% APY High Rate: Comenity Direct - 0.80% APY High Rate: Citizens Access - 0.80% APY High Rate: Synchrony Bank - 0.75% APY High Rate: Popular Direct - 0.75% APY High Rate: Capital One - 0.65% APY #personalfinance #investments
I moved a bunch of money in to Citi last year and regretted it; closed my account as quickly as I could afterwards. Their customer service is absolutely terrible and their online experience has so many gaps compared to other banks.
Okay then any other suggestions for a good savings rate ?
Ally is great!
How is it different than citi?
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Stocks with dividends. Bank interest is tax at marginal tax rate.
As long as it's in the right ballpark, there isn't much point worrying about maximizing the interest rate you're getting on your emergency fund / spending money. Your investments compounding at an average of 6-12% will make soooo much more. Most of the banks you listed are decent, I know Ally is very convenient and has good service
So are you saying rather than putting it into a savings account , put it into stock investments? But those can be risky right
Typically people advise having enough cash on hand for around 6 months of expenses. This can be super useful if something unexpected comes up or if you lose your job. It makes a lot of sense to put this money into a high yield savings account. Ideally, the rest of your available money will go into an investment portfolio. There is risk in the short term (for example, the market could drop 40% next year), but over the last 100 years stocks and bonds have always done well in the long-term (over the course of decades). I'd recommend you search for "three fund portfolio" and read about that philosophy - it's not the only way to invest, but it's probably the best way to start. Also read about "timing the market" - you might get lucky once or twice, but it isn't sustainable and is really just gambling. You should aim to have money in the market continuously for decades, and you should understand that temporary crashes are inconsequential
That’s great. I also contribute to my pre tax 401k . I would like to touch the tax efficiency point you made. I think it is utterly important. Today I talked to the fidelity guys and realized that I am not contributing the 6k to my roth IRA and realized its a mistake. I can also contribute to roth 401k and have it rolled over to roth IRA via the backdoor. I was thinking that I might not want to lock that much money into a account that I cannot touch till 59 years of age but got to know that I can take out my principle after 5 years.
@Op which bank did you finally select?
Not yet any. I was thinking of putting that money into the market. So still waiting to iron out options
Very bad customer service and online banking