Goldman Sachs vs. Discovery Savings acc?
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...
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.
Ally Bank savings account
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.
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.
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)
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.
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).
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.
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 !
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.
I don’t have a lot of credit history (recently moved to U.S) . I have about 700 and getting mails from Capital One. I do have a Wells Fargo credit card. I’m saving for house a few years later
Few years later? Absolutely don't do savings account then. Listen to what Warren Buffett recommends and go with Vanguard Index funds.