"high" APY online savings accounts

[volk06]

We're looking to move our savings to a higher earning APY savings account. The two we're looking at is Ally at 0.99% or Barclays Dream account at 1.05% with a 2.5% bonus on the interest if you make a deposit less than $1,000 for six months and a 2.5% bonus on the interest if you don't make a withdrawal for 6 months.

Does anyone have any experience with any of these? Granted were more than likely talking a few dollars a year difference starting out since we're starting from scratch on this account. It appears that Ally is more user friendly and easier funding and withdrawing money when needed.

 

[bvance554]

Ally is a new bank looking for business. I have a car financed through them and I like them. I was a huge fan of ING before they were bought by Capitol One. Ally seems to be filling the niche left by ING.

 

[qdeezie]

I've been with Ally for about a year or so for the savings. I honestly have no complaints with Ally in the grand scheme of things.

The only complaint I have (and this is a nitpick) is that when transferring money over to the Ally savings from a different bank, it takes about 3 days for the transaction to post to the Ally account versus 1 day when transferring to/from two different brick and mortar banks.

 

[JHZR2]

Ive used ING Direct, which is now Capital One since around 2000. No complaints. Banks just cant match...

 

[JDW]

Originally Posted By: JHZR2
Ive used ING Direct, which is now Capital One since around 2000. No complaints. Banks just cant match...


X2

 

[zrxkawboy]

We have been happy with Ally.

 

[racer12306]

Originally Posted By: JDW
Originally Posted By: JHZR2
Ive used ING Direct, which is now Capital One since around 2000. No complaints. Banks just cant match...


X2

X3

Right now they are paying .75%, nothing like it used to be, but substantially better than my BoA passbook savings, which pays .02%. Pretty pathetic really.

 

[Wolf359]

If they're long term savings, I'd just stick it in an index fund like the Vanguard Index 500. Up about 15% this year. Last was even better, the 3 year average was 20.74%, even with the down market of 2008, the 10 year average is 7.94%. Haven't paid attention to bank savings rate in years. Only reason to park money there would be for a specific purpose in the next year or two. There's a reason the rich are getting richer.

 

[raytseng]

have had Ally accounts when they were still GMAC and through the bailout.
They are now mostly owned by the taxpayer, but they are federally insured, so it's a commodity same as any other savings account.

You didn't mention anything specific you were looking for in a bank, so ally is going to work same as any other FDIC bank.
Website works fine and pretty straightforward to do savings and checking. When you need to call to work with an agent to do something more complex, it's fast and efficient.

 

[volk06]

Originally Posted By: raytseng
have had Ally accounts when they were still GMAC and through the bailout.
They are now mostly owned by the taxpayer, but they are federally insured, so it's a commodity same as any other savings account.

You didn't mention anything specific you were looking for in a bank, so ally is going to work same as any other FDIC bank.
Website works fine and pretty straightforward to do savings and checking. When you need to call to work with an agent to do something more complex, it's fast and efficient.



Looking for higher interest for savings that is easily accessible and liquid. Thought about starting a money market account once we have enough saved up. I have IRAs and 401K so I dont want to be investing this savings into the stock market.

 

[raytseng]

If you're at the level where you're looking at the difference between 1% and 1.25% APYs, one thing you can calculate out is the Ally CD rates. Ally's fees for breaking contract a CD are relatively mild, so you can come out ahead after like 4 or 5 months.

To be honest, as Wolf said, the APYs are so low it's not really going to make that much of a difference, but if this scratches your itch as something to optimize in your life,go for it.

I would say if you really need things liquid, to still keep a local bank, where you can go if you need like a cashier's check for example. You can use Ally as a holding bank, and for checks and other misc things. You ACH the funds to your local bank if you need money now, or wire it in if you really need it immediately.

 

[MNgopher]

Been a long time ING now Captial One savings account holder. No issues or complaints (other than the rate being way lower than it used to be) but it still beats the brick and mortar banks.

And yes, it does take 2-3 days to move money, so a little planning is needed...

 

[Mr Nice]

Roth IRA is also easily accessible if you need money in an emergency as long as you withdraw the principal. I also agree with Vanguard index fund.

Its rare that you need $10,000 cash on short notice.

 

[volk06]

Originally Posted By: LT4 Vette
Roth IRA is also easily accessible if you need money in an emergency as long as you withdraw the principal. I also agree with Vanguard index fund.

Its rare that you need $10,000 cash on short notice.


I already contribute the max to my Roth IRA.

 

[Mr Nice]

Me too. I've always felt a Roth IRA limit should $10-12K per year, not the max amount it currently is.

For easy income I like dividend stocks: AT&T pay around 5%

 

[volk06]

Does anyone use capitalone 369 checking account?

 

[hattaresguy]

I don't pay attention to interest saving's interest rates anymore because they are to low to really matter. I have no idea what my bank pays.

Your talking about making an extra what $1,500 a year on $100k saved, that's a waste of time and money.

 

[volk06]

Originally Posted By: hattaresguy
I don't pay attention to interest saving's interest rates anymore because they are to low to really matter. I have no idea what my bank pays.

Your talking about making an extra what $1,500 a year on $100k saved, that's a waste of time and money.


Every penny helps.