High Yield Saving Account Questions

[floatn turd]

I am not a rich man, so I know nothing about savings accounts or where to park a chunk of money for 10 or 20 years (tops).
But
I do have a family member who does have such a terrible problems.

They have some money just sitting in a regular savings account earning very little monthly interest.

Questions:
What are the risks (if any) with putting money into a High Yield Savings Account, that has a APY of like 5.25%, like the two seen below?Rather than using a standard account with 0.47% APY.

If the money's going to sit, it might as well make them some intrest IMO, but what do I know...

Any info would be appreciated.

Thank you
FT

 

[gqchris]

You are absolutely PISSING money in to the wind if you do not have it in a High Yield account. No excuse except for just plain not knowing I guess.

The rates are high. And 100k gets you about 1k a month in interest. Its a no brainer.

 

[racektm]

You are absolutely PISSING money in to the wind if you do not have it in a High Yield account. No excuse except for just plain not knowing I guess.

The rates are high. And 100k gets you about 1k a month in interest. Its a no brainer.

I agree 100%

I would like to know where your are getting 12% in a high yield account?? 5% will get you about $400 +-

 

[sczagurs]

Morgan Stanley high yield savings account coupled with 6 month CD will solve their problem.

 

[Tom Slick]

Marcus by Goldman is a good option as they offer 4.5% plus an additional 1% for referrals. What I like about Marcus is they offer instant transfers. Very simple to get started as well.

 

[havasujeeper]

But when Morgan Stanley takes their cut, what are you left with?

And is Morgan Stanley FDIC insured?

 

[floatn turd]

Thank you all for the input.


I did some searches for the best ones to use, that are FDIC insured with the highest APY and the that Jenius Bank kept popping up.

Is there any homework that should be done on them, since it's not a "known" Bank?

 

[Bear Down]

I am using betterment...No fees for the my high yield 4.75% account. Takes about 2-3 days to transfer from them to my bank if needed.. Their APP is really easy to use/navigate.

 

[sczagurs]

But when Morgan Stanley takes their cut, what are you left with?

And is Morgan Stanley FDIC insured?

Fee is next to nothing and yes money is FDIC insured. I will see if I can grab the exact figures.

 

[2Driver]

If you don’t need it for -20 years why leave it in cash? But good lord get it out of a savings account.

Id tend to stay away from the no name regional banks even if they are insured. I’d try a full service account where you can easily get money out or move some to your checking, like the interest for example. I‘m always touting Schwab but they are stupid easy and have multiple choices for these types of accounts paying up to 5.34% right now. I can move money, wire money send a portion to my Bof A checking each month. Etc…

Another option is insured Muni bonds. I bought a bunch paying 5% tax free, thats the same as making roughly 7% depending on your tax bracket and they pay out twice a year. If you want your bond money back you just sell them like a stock AND they will have appreciated if interest rates go down, which is the direction they are headed. Your interest savings account principal wont appreciate, will float down with rates and will be close to 4% next year.

So you can sit in cash at 5% with no appreciation and ride it down to 4% or get 6-7% locked in equivalent in muni bonds and the bond principal goes up in price. No brainer

 

[badgas]

I use CIT bank for high yield savings. FDIC insured , no problem.

However 10-20 years is a LONG time ? Open a vanguard account and buy an index fund like VTSAX.

The market has only had one 10 year period that did not return a gain 1999-2009

 

[havasujeeper]

I have an Ally savings and Money Market savings account. Both are 4.16% Interest Rate, which is 4.25% yield. I'd love to lateral this $ into a better plan, but since it is linked to my checking account, I can quickly and easily move money back and forth. I know many of my retired neighbors just like to park their liquid savings at the local banks, which pay at maximum .75% on $400k. To me, this is just throwing money away.

 

[farmo83]

I would put money in JEPI or JEPQ if I had a long term horizon for a cash park.

 

[brgrcru]

You are absolutely PISSING money in to the wind if you do not have it in a High Yield account. No excuse except for just plain not knowing I guess.

The rates are high. And 100k gets you about 1k a month in interest. Its a no brainer.

Where are you getting 1 k a month on 100k ?
Ill go tell my financial advisor
You are fired !

 

[2Driver]

Where are you getting 1 k a month on 100k ?
Ill go tell my financial advisor
You are fired !

I think his numbers are off, yeah it’s more like $440 a month in a high yield MM account.

 

[2Driver]

I would put money in JEPI or JEPQ if I had a long term horizon for a cash park.

I have some JEPI, waiting on a price correction to buy more. JEPQ has ultra low trading volume. It’s hard to get it, for sure hard to sell.

 

[havasujeeper]

We all need to understand that age comes into play with setting money aside. If I was a young whippersnapper, you bet, I'd get me a nice, half risky, high yield investment, but at my age, I don't even buy unripened bananas!

 

[Havasu blue label]

Where are you getting 1 k a month on 100k ?
Ill go tell my financial advisor
You are fired !

Maybe 500

 

[spark2678]

I have a Capital One Venture Card and opened a 360 Performance Savings account. Getting 4.35% APY.

 

[floatn turd]

We all need to understand that age comes into play with setting money aside. If I was a young whippersnapper, you bet, I'd get me a nice, half risky, high yield investment, but at my age, I don't even buy unripened bananas!

Stupid Question:
How are High Yield Accounts "risky"?
I understand the APY fluctuates but is the actual money itself ever at risk?
(Assuming the financial system doesn't take a dump and the world is normal)

Thank you
FT

 

[Tank]

Anyone wants to invest money or set up long term investments but don’t want the headache of managing it yourself or don’t trust your own knowledge to get the maximum yield, I highly recommend calling our guy Henry At Hennion & Walsh. Guys a stud. Very patient with explaining things and setting things up right. Just a good dude.

Ask for Henry szawlowski

(973) 299-8989

 

[CLdrinker]

Anyone wants to invest money or set up long term investments but don’t want the headache of managing it yourself or don’t trust your own knowledge to get the maximum yield, I highly recommend calling our guy Henry At Hennion & Walsh. Guys a stud. Very patient with explaining things and setting things up right. Just a good dude.

Ask for Henry szawlowski

(973) 299-8989

What’s his minimum amount.

A big problem is unexperienced folks is nobody wants to touch us unless we have a million bucks minimum.

 

[Tank]

What’s his minimum amount.

A big problem is unexperienced folks is nobody wants to touch us unless we have a million bucks minimum.

Good question. I can find out. I’m sure it needs to be a “decent” amount to make it worth their time. I’ll find out.

Edit @CLdrinker

And this is why I like dealing with H&W. Try getting a rando question via email answered within a couple minutes at Fidelity.

Anyway. Straight from the source -

“The minimum to start buying bonds is just $10,000.00. For the Managed accounts for growth the minimum is $100,000.00; however, I have convinced the team to lower the minimum a few times in the past to $50,000.00 for clients that started with a lesser amount but intended to make regular contributions to continue to build out the account. “

In case you’re wondering “managed accounts” are on the stock market side and have a monthly fee to over see. Investment firms make their money on the bonds side by taking a percent off the top of the purchase of The bond. The market side is referred to as growth accounts because they “usually” build equity quicker than bonds But are more volatile where bonds are more conservative.

We are pretty conservative with our investments so most our stuff is in bonds. But we do have a decent chunk in stocks.

Anyway, that’s the scoop.

Like I said, it’s worth the call. As mentioned in c-ya’s Nvidia Stock thread, our stock investments equity over just the last year through H&W bought the S63 we just bought. And the money we used to pay for the top gun we bought in Jan has already been replaced. When people talk about making your money work for you, this is what they’re talking about. Zero principal used for either purchase. I used Henry’s counsel for both purchases.

For what it’s worth, I share the above because I strongly advise in reaching out to an advisor you can trust. It’s worth it.

 

[CLdrinker]

Good question. I can find out. I’m sure it needs to be a “decent” amount to make it worth their time. I’ll find out.

Edit @CLdrinker

And this is why I like dealing with H&W. Try getting a rando question via email answered within a couple minutes at Fidelity.

Anyway. Straight from the source -

“The minimum to start buying bonds is just $10,000.00. For the Managed accounts for growth the minimum is $100,000.00; however, I have convinced the team to lower the minimum a few times in the past to $50,000.00 for clients that started with a lesser amount but intended to make regular contributions to continue to build out the account. “

In case you’re wondering “managed accounts” are on the stock market side and have a monthly fee to over see. Investment firms make their money on the bonds side by taking a percent off the top of the purchase of The bond. The market side is referred to as growth accounts because they “usually” build equity quicker than bonds But are more volatile where bonds are more conservative.

We are pretty conservative with our investments so most our stuff is in bonds. But we do have a decent chunk in stocks.

Anyway, that’s the scoop.

Like I said, it’s worth the call. As mentioned in c-ya’s Nvidia Stock thread, our stock investments equity over just the last year through H&W bought the S63 we just bought. And the money we used to pay for the top gun we bought in Jan has already been replaced. When people talk about making your money work for you, this is what they’re talking about. Zero principal used for either purchase. I used Henry’s counsel for both purchases.

For what it’s worth, I share the above because I strongly advise in reaching out to an advisor you can trust. It’s worth it.

See I don’t think I would get in. I have about 50k in the kids Charles Schwab account. Our oh shit savings account has a small amount and then we have our 401ks which is where most of the money is.

 

[Mr. C]

I use CIT bank for high yield savings. FDIC insured , no problem.

However 10-20 years is a LONG time ? Open a vanguard account and buy an index fund like VTSAX.

The market has only had one 10 year period that did not return a gain 1999-2009

Went with CiT bank as well. I think it is for a year at 5 1/4 savings. Not CD. Can withdraw when you need it no penalties ( from what I understand)

 

[coolchange]

See I don’t think I would get in. I have about 50k in the kids Charles Schwab account. Our oh shit savings account has a small amount and then we have our 401ks which is where most of the money is.

Why don’t you call Schwab?

 

[Mr. C]

Anyone wants to invest money or set up long term investments but don’t want the headache of managing it yourself or don’t trust your own knowledge to get the maximum yield, I highly recommend calling our guy Henry At Hennion & Walsh. Guys a stud. Very patient with explaining things and setting things up right. Just a good dude.

Ask for Henry szawlowski

(973) 299-8989

Do they have a minimum? Let’s say I come into 350k soon. Will they want me and my money or like some want only 1mil to start. ??

Or really simple. I could just call and inquire

EDIT. Saw your response above.

 

[CLdrinker]

Why don’t you call Schwab?

Rather trust my Pennie’s with someone referred to me than Joe Schmoe assigned to me.

Also would like to see if I should be doing something else with our 401ks.

 

[Tank]

See I don’t think I would get in. I have about 50k in the kids Charles Schwab account. Our oh shit savings account has a small amount and then we have our 401ks which is where most of the money is.

You can get in. Give him a call. Run the numbers with Henry. He’s straight up. He’ll tell you point blank
If you should leave things the way they are or if you can be making more by changing strategies. If those strategies don’t involve him and his firm, he’ll tell
You. That’s how he rolls.

(973) 299-8989

 

[lbhsbz]

, our stock investments equity over just the last year through H&W bought the S63 we just bought. And the money we used to pay for the top gun we bought in Jan has already been replaced.

This is good. I was going to make a post suggesting that those giving advise in here post up their boats and cars, so us broke dicks can better gauge what we're getting into. Any advise from someone with an olds in a jetbote toad by a F150 should be ignored. The S63 / Top Gun deal is solid. lol.

 

[Mr. C]

This is good. I was going to make a post suggesting that those giving advise in here post up their boats and cars, so us broke dicks can better gauge what we're getting into. Any advise from someone with an olds in a jetbote toad by a F150 should be ignored. The S63 / Top Gun deal is solid. lol.

Haha. I’m there with ya.
Old 18 ft outboard pulled by an 08 highlander.
Perspective I guess.

Having your money work for you was the point I got. Whether it’s x amount. Or xxx amount.

Side note. How you doing ??

 

[Tank]

This is good. I was going to make a post suggesting that those giving advise in here post up their boats and cars, so us broke dicks can better gauge what we're getting into. Any advise from someone with an olds in a jetbote toad by a F150 should be ignored. The S63 / Top Gun deal is solid. lol.

That shits funny. It’s like the fat guy offering advise on how to diet and exercise. Love that one. lol

it’s not like the money some guys around here roll but we’re happy with it. And the point wasn’t LAM, it was to illustrate real
Life gains and what Henry did for us. People get weird talking about money and I get that totally. But I’m a true believer in, if you can find the right guy to help manage your money or help You grow your money, you should do it. And I’ve found the right guy for us. And for the record my dad used him for years prior, that’s how I got in contact with him.

If I can pass along how it’s worked for us and that helps others on here, that’s my pleasure to help.

 

[lbhsbz]

Haha. I’m there with ya.
Old 18 ft outboard pulled by an 08 highlander.
Perspective I guess.

Having your money work for you was the point I got. Whether it’s x amount. Or xxx amount.

Side note. How you doing ??

Quiet in the back…the adults are talking (200hp minimum to be part of this discussion)

 

[coolchange]

This is good. I was going to make a post suggesting that those giving advise in here post up their boats and cars, so us broke dicks can better gauge what we're getting into. Any advise from someone with an olds in a jetbote toad by a F150 should be ignored. The S63 / Top Gun deal is solid. lol.

So I guess us broke dicks with jet boats should not participate and try to keep a discord going and learn something should just stfu. Got it.

 

[lbhsbz]

So I guess us broke dicks with jet boats should not participate and try to keep a discord going and learn something should just stfu. Got it.

Do you have an olds or a BBC?... (this is important)

 

[CLdrinker]

This is good. I was going to make a post suggesting that those giving advise in here post up their boats and cars, so us broke dicks can better gauge what we're getting into. Any advise from someone with an olds in a jetbote toad by a F150 should be ignored. The S63 / Top Gun deal is solid. lol.

My boat money is in the kids savings.

 

[Mr. C]

Quiet in the back…the adults are talking (200hp minimum to be part of this discussion)

Off to being poor and under horse powered somewhere else

 

[YeahYeah01]

I use CIT bank for high yield savings. FDIC insured , no problem.

However 10-20 years is a LONG time ? Open a vanguard account and buy an index fund like VTSAX.

The market has only had one 10 year period that did not return a gain 1999-2009

Wish I did this Earlier. Just now getting around to it. I wanted the cash in hand for a vacation house and then prices took off and then Interest took off. For sure missed out a few years of 8 plus percent of 4.5 percent.

 

[badgas]

Stupid Question:
How are High Yield Accounts "risky"?
I understand the APY fluctuates but is the actual money itself ever at risk?
(Assuming the financial system doesn't take a dump and the world is normal)

Thank you
FT

They carry the same risk as your regular savings account, They just have a "higher yield" than our traditional big banks like Chase, WF , BofA etc.

FDIC Insured up to $250,000 per account. If you have more that $250K then open a second one with another bank.

 

[Runs2rch]

They carry the same risk as your regular savings account, They just have a "higher yield" than our traditional big banks like Chase, WF , BofA etc.

FDIC Insured up to $250,000 per account. If you have more that $250K then open a second one with another bank.

250k per borrower. So with wife on account is 500k.

 

[floatn turd]

Thank you all for the info.
I appreciate it.


FT

 

[evantwheeler]

Thank you all for the info.
I appreciate it.


FT

What did you end up doing, anything?

 

[Mr. C]

I use CIT bank for high yield savings. FDIC insured , no problem.

However 10-20 years is a LONG time ? Open a vanguard account and buy an index fund like VTSAX.

The market has only had one 10 year period that did not return a gain 1999-2009

Cit bank for savings as well.
Add or take what you need when you want.
No penalties.
We are about 5 1/4 % Like the monthly interest for sure

 

[Nosocks]

Amex is currently at 4.25%

Easy to shuffle money around and you get the excellent Amex customer service. There are higher return options, but Amex is most in reach for me.

Takes a couple days to get the money in your account. Not a big deal.

 

[shintoooo]

CIT bank offers 5% regular savings account so you’re not locked up like a CD account.

 

[havasujeeper]

Is CIT Bank the same as Citibank?

 

[ChumpChange]

Is CIT Bank the same as Citibank?

No. CIT is a large asset base lender which generally charges higher rates than standard revolving lines credit. So the returns are higher which means they can pay higher on deposits as well.

I know a bank that was paying 6% on CDs opened through July 31. It was cheaper than going to the fed getting overnight money when they did all the analysis.

 

[HNL2LHC]

CIT bank offers 5% regular savings account so you’re not locked up like a CD account.

View attachment 1405433

PerfEtc, I was just talking to the wife about this. We have some money that we have to move out of our standard banking. Thanks for the suggestion.

 

[boatnam2]

Amex is currently at 4.25%

Easy to shuffle money around and you get the excellent Amex customer service. There are higher return options, but Amex is most in reach for me.

Takes a couple days to get the money in your account. Not a big deal.

I have used amex since the start of the higher paying saving accounts started 18-19 months ago but moved most of it into T-bills hoping to catch little, longer payout on yield if rates drop some. They have very quick transfers when I did move money. Everything has dropped quite a bit, I think the HYSA will also when we see first rate cut, hopefully it will go a little longer, nice to have when your in your 60's

 

[Paradox]

Schwab brokers bank CDs. FDIC insured to $250k as is typical. There are many options and banks so just buy from different banks as needed to cover higher amounts.

These rates are currently offered as of this Morning:

The thing with AMX (weve got an account there), Citi and others is that they immediately drop their rate when the rate drop. Yes, you might get 5% today at Citi but, if they decide to drop the rate on Monday, next month, or whenever, they do so and you have no choice but to live with it or find an account elsewhere. They are a good choice to park emergency money but not so good for stable (no risk) longer term income in my opinion.