I know that savings account give higher apy which is like 1.70 for most of the banks today. That makes sense if you have lot of money like for 50k you will get $850 but there are checking account bonuses that can give the same amount like citibank . Is it because of the compounding interest that you get on savings? The only con I see is that you don't wanna keep opening bank accounts and maintain them or is it that you are able to transfer money easily from accounts because as far as I know there are no atms provided for savings account. I think the best one for now is Capital One 360 Performance Savings. I will just deposit 10k and get $200 bonus and an apy of 1.70 . I already have a discover savings account. The marcus had a good offer previously : 1% Additional Cash Bonus up to $500 on deposit but it is no longer available :(
What?
It’s Sunday, OP is high on shrooms, give him a break
Beware of Capital One...5 months ago they offered the same account under the name 360 money market with 2.00% APY, they dropped it to 1.50% APY gradually by reducing 10 basis points each month. When I found out and called them they told me to open a new 360 performance savings account. Basically its the sane account with a different name. They also screw customers the same way customers try to take bonus and churn.
To be fair, we have to adjust the rates as the Fed adjusts theirs. Although it is pretty shitty that they secretly started the performance savings product and never informed their old customers about it (I had a 360 money market account, just switched to performance savings). It takes like 30 seconds to open a new account though, so it wasn’t too much work at all
Isn't it the case with other banks as well they cut as fed cut rates? Is the rate locked once you open the account? Cause fed cuts keep happening
Strictly for the 1.70 interest rate. CD rates are about the same. Makes no sense to lock in the money into an CD. Banks offer big bonuses to start an banking relationship with you.
In a typical scenario, ppl try to put it in some online high yield savings account whether 1.7 or 2.4% , just to have some emergency funds which they try not to touch. They don't bother about the interest it generates. Idea is it's better than keeping it at a 0.1% savings account.
Savings account is where you should stash your emergency fund (3-6 months of expenses). For things you might need 1-2 years from now, like a house down payment, a savings account makes sense. You wouldn't want to risk that money on the stock market l.
I am asking why not put it in a checkings account instead of savings since they give higher bonus?
Bonuses are typically a one time thing to get you to start a business relationship with them. Waste of time to keep switching checking account just to get little bonuses and you'll eventually run out of banks you can switch to for bonuses. Better to just invest most money into investment accounts, only keep a few months expenses in a high interest savings account and don't keep a lot of money in checking.
Related question: does opening a new checking or savings account result in a hard pull on credit report?
Usually no, but the only one that does pull your credit AFAIK is the Schwab high yield checking account
The investor checking account with Schwab is pretty good. Reimburses ATM fees. Don't even have to put money in the investment account. Investment account is great for trading, no fees and fractional trading.
I like Ally
Wealthfront has a savings account offering 1.82% right now and they’ve consistently tracked higher than Marcus Ally and all of the other bank’s rates SoFi has a checking account that offers 1.6% with free atm withdrawals anywhere in the world too. The interest is free money. If y’all looking to sign up, dm me for a referral pls 😀
They don’t hv joining bonuses though
Yeah but you make the difference in interest back in like a year if you actually save however the minimum is for 360 or HSBC. They screw you hard with the rates once your account is open and it’s too much work to keep opening and closing accounts. Also wealthfronts transfers take 1 biz day, most banks are slow af and take 3-5. The bonus has to come from somewhere 😉
A wild shygandalf appears! I think I’ve caught them all now.
Because I dont have enough money to actually invest AND have a rainy day fund, so savings account it is 😂