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Highest interest earning accounts #5420139 05/03/20 05:40 PM
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92saturnsl2 Offline OP
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For a long time I've had money in a high yield savings account which earned the best rate I could find. Recently the interest I've been earning has been nearly halved, making me ponder whether there's a better option.

In looking at CDs, they don't seem to earn an appreciably higher rate, though had I done that months ago, I would still be earning at much higher rate that was typical back then. I suppose this is the advantage of CDs is that the rate is locked in-- but is there any way of knowing or predicting what directions the rates might headed?

Money market accounts typically earn a lower rate from what I can tell than a high-yield savings account, so what is the benefit to a money market account and how does it differ from traditional savings?

I know BITOG makes a poor substitute for a financial adviser, just thought you folks might throw some elementary advice my way on which account might be better given the current events / upside down state of the economy.


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Re: Highest interest earning accounts [Re: 92saturnsl2] #5420149 05/03/20 05:57 PM
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bozo66 Offline
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Checkout CIT Bank.

Re: Highest interest earning accounts [Re: 92saturnsl2] #5420152 05/03/20 06:01 PM
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JayhawkRoy Online Content
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Discover Bank is advertising a 1.40% rate for online savings account. I have had accounts with them to park money and they are pleasant to deal with.

Re: Highest interest earning accounts [Re: 92saturnsl2] #5420156 05/03/20 06:03 PM
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About a year ago I was getting 2.7% on a couple of 1 year CD's today you're likely lucky if you can beat .5%.


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Re: Highest interest earning accounts [Re: 92saturnsl2] #5420161 05/03/20 06:07 PM
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ZeeOSix Offline
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The best investment is to take all your money out of the bank before they start charging negative interest for them to hold your money, lol. laugh

I bought a CD about a year ago that pays 3.1% ... now the same one from the same place is paying 0.60%. It's the economic times, not going to get around it much if any.

Re: Highest interest earning accounts [Re: 92saturnsl2] #5420163 05/03/20 06:08 PM
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JohnG Offline
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Have you looked at dividend paying stocks?

Yes, you get some risk with your "interest, but I will give two examples. Keep in mind that there is risk in any equity investment.

FLMN - Quaterly dividend 22.09%. Price per share $2.23.
OXLC - MONTHLY dividend 33.06% (now-yes not a typo) but who knows what the future will bring. price/share $4.90.

Re: Highest interest earning accounts [Re: ZeeOSix] #5420164 05/03/20 06:09 PM
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PimTac Offline
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Originally Posted by ZeeOSix
The best investment is to take all your money out of the bank before they start charging negative interest for them to hold your money, lol.




Many do that already what with the fees and charges these days.


There is not going to be much of any interest to be had when the Fed rates are at zero. It’s just the way it is.


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Re: Highest interest earning accounts [Re: JayhawkRoy] #5420165 05/03/20 06:10 PM
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ZeeOSix Offline
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Originally Posted by JayhawkRoy
Discover Bank is advertising a 1.40% rate for online savings account.


Is that for the first $500, then the interest paid drops to 0.1% for the money above $500 - ?? That's how most of the banks try to draw people in.

Re: Highest interest earning accounts [Re: ZeeOSix] #5420168 05/03/20 06:14 PM
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Quattro Pete Offline
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Originally Posted by ZeeOSix
Originally Posted by JayhawkRoy
Discover Bank is advertising a 1.40% rate for online savings account.


Is that for the first $500, then the interest paid drops to 0.1% for the money above $500 - ?? That's how most of the banks try to draw people in.

It's for the entire amount. It was actually 2% up until recently, but then a few interest rate cuts took place...
https://www.discover.com/online-banking/savings-account/

Also, Capital One 360 is at 1.5% APY currently:
https://www.capitalone.com/bank/savings-accounts/


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Re: Highest interest earning accounts [Re: 92saturnsl2] #5420191 05/03/20 06:50 PM
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sloinker Offline
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Check with your credit union. Right now mine is a whopping 1% but usually has a matching dividend at years end.


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Re: Highest interest earning accounts [Re: 92saturnsl2] #5420236 05/03/20 07:52 PM
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Ally is 1.5%


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Re: Highest interest earning accounts [Re: JohnG] #5420257 05/03/20 08:16 PM
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Mr Nice Offline
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Originally Posted by JohnG
Have you looked at dividend paying stocks?

Yes, you get some risk with your "interest, but I will give two examples. Keep in mind that there is risk in any equity investment.

FLMN - Quaterly dividend 22.09%. Price per share $2.23.
OXLC - MONTHLY dividend 33.06% (now-yes not a typo) but who knows what the future will bring. price/share $4.90.


I’d be very cautious with such high dividends like that.

Re: Highest interest earning accounts [Re: 92saturnsl2] #5420282 05/03/20 08:45 PM
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A much safer stock: UMH Properties, Inc. 6.375% Series D Cumulative Redeemable Preferred Stock, Liquidation Preference $25 per share
$22.25. At it's current price that is 7.15% yield. This is about as safe a dividend as you will find.


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Re: Highest interest earning accounts [Re: Mr Nice] #5420341 05/03/20 10:06 PM
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Wolf359 Online Content
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Originally Posted by Mr Nice
Originally Posted by JohnG
Have you looked at dividend paying stocks?

Yes, you get some risk with your "interest, but I will give two examples. Keep in mind that there is risk in any equity investment.

FLMN - Quaterly dividend 22.09%. Price per share $2.23.
OXLC - MONTHLY dividend 33.06% (now-yes not a typo) but who knows what the future will bring. price/share $4.90.


I’d be very cautious with such high dividends like that.



Lots of companies are cutting their dividends now so don't count on them in the future. Of course that's in the oil sector so if you're buying dividend stocks in that sector, you shouldn't surprised if they get cut.

I always bought growth stocks, that has normally been the best performing sector of the market. I didn't care for dividends as the point of investing is to get the highest returns commensurate with the risk. Dividend stocks were always considered safer, lower risk investments but I always figured I had time and if I'm going to swing, I'm going to swing for the fences so to speak and not bunt or single like dividend stocks.

High yield savings account are really for short term savings. It's actually riskier putting money in a savings account long term because you basically guaranteeing that you probably just going to keep up with inflation and over time your savings will be eroded and won't really grow. Sure the stock market is riskier, but no over the long term. Of course it's a very tough market to get into right now, but dollar cost averaging might be the way to get in now.

Re: Highest interest earning accounts [Re: 92saturnsl2] #5420606 05/04/20 09:14 AM
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JohnG Offline
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Quote
Lots of companies are cutting their dividends now so don't count on them in the future. Of course that's in the oil sector so if you're buying dividend stocks in that sector, you shouldn't surprised if they get cut.

I always bought growth stocks, that has normally been the best performing sector of the market. I didn't care for dividends as the point of investing is to get the highest returns commensurate with the risk. Dividend stocks were always considered safer, lower risk investments but I always figured I had time and if I'm going to swing, I'm going to swing for the fences so to speak and not bunt or single like dividend stocks.

High yield savings account are really for short term savings. It's actually riskier putting money in a savings account long term because you basically guaranteeing that you probably just going to keep up with inflation and over time your savings will be eroded and won't really grow. Sure the stock market is riskier, but no over the long term. Of course it's a very tough market to get into right now, but dollar cost averaging might be the way to get in now.


Yes, you are right. Ford just ended their dividend, so I sold it.
I've been pulling $18,000.00/yr from dividends since 2009, and my "principal" has continued to grow during that time.
Good solid stocks that pay a decent dividend? How about Pepsi, Coke, Phillip Morris, Lockheed Martin, WalMart, JPMorgan, and quite a few Mutual Funds of that category.
Exxon Mobil just froze there dividend, but will continue to pay it. They just won't increase it.

Except for the risk involved, they all beat any savings account out there.

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