Highest interest earning accounts

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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.
 
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.
 
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.gif


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.
 
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.
 
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.
 
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.
 
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/
 
Check with your credit union. Right now mine is a whopping 1% but usually has a matching dividend at years end.
 
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.
 
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.
 
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.
 
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.
 
I've never bothered to chase high interest bank accounts. For all my life, if I had enough money that would appreciably grow in one... I'd be ahead by putting that money towards one debt or another. I get the premise, make a buck when one can, but it just doesn't seem like a sizable emergency fund is going to make that much money over a year, not worth the effort of running around for it.
 
Avoid divided traps. I'd use a high yield dividend ETF instead.

But ultimately I agree 100% with Wolf. The last 5 years before CV I was looking for big time growth, not dividend return. Amazon has no dividend.... but crazy growth.
 
Originally Posted by Fattylocks
Sure about that capital one 360?

I logged in yesterday and my account is paying 0.50%


How old is that account? If it's older, then it doesn't pay much. You would have to ask them to open the new "360 Performance Savings" one and transfer your funds from the old account there. They won't do it automatically.
 
Originally Posted by Quattro Pete
Originally Posted by Fattylocks
Sure about that capital one 360?

I logged in yesterday and my account is paying 0.50%


How old is that account? If it's older, then it doesn't pay much. You would have to ask them to open the new "360 Performance Savings" one and transfer your funds from the old account there. They won't do it automatically.


They sure don't.

The account is old. I used to have an account with ING bank. Paid 5.0% They were bought out by cap one and the rate slowly but surely declined.

Last summer I transferred most of the balance into their money market account that currently pays just shy of 1.5%

And withdrew another chunk into a test account with American Express. They have a personal saving account that currently is paying 1.5%

And in this day of electronic transfers cap one sure is slow when I want to move money into my local bank.
 
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