Online savings with higher interest rate?

[mainelyfoolish]

The bulk of my cash savings is at Capital One and has been there ever since it was ING Direct. I’ve had this account for over 20 years, so obviously I am not one to change banks to chase a small interest rate increase. However, in this high inflationary time, CapOne is stubbornly sticking to 0.40% and I’m not happy with that.

This money is saved for things like future car purchases (our cars are 10 and 12 years old), vacations, home improvements, orthodontia, etc., so I need it to be accessible and preserve principal. I have already purchased my annual limit of I-bonds.

Has anyone recently changed banks to get a higher interest rate on savings? The one I am seriously considering is Bread Savings (owned by Comenity Bank) which is currently at 0.75%. Does anyone have experience with Bread Savings? Mostly I hope that I don’t go to the trouble of changing banks only to have the new bank drop interest rates right after I move! 

[simpsongal]

I probably wouldn't bother for such a modest increase. Savings rates should start to tick up now that interest rates are going up. I'd sit tight for a couple months and make a move then.

[AdaraMarie]

I moved a lot of my money to sofi last year to get to .25 from .01. They recently increased to 1.25.
If you would like a referral link for a little $, let me know.

[sadlebred]

This is general advice make sure any money moving is done to a FDIC insured bank or an NCUA Credit Union.

Online companies like Chime are not banks and not insured.

[polarbearfans]

I use SmartyPig for savings account. Interest rate is 0.70% if balance less than $10,000.00… then goes down to 0.55% over $10,000.00

[k3am]

We (at work) are currently expecting WSJ prime rate to increase 3% this year alone. Savings rates are going to see some growth across the board.

[brooke77]

Check out the CD rates. I keep some of my savings in a CD and some in a normal savings account. I use Ally and my savings account has a .50% APR and my 18 month CD is 1.5%.

[maloney]

Capital one is back up to .60%

[dancelnow]

I just moved ours from CIT split between Bread and Bask.

[archiethedragon]

May 1, 2022 17:47:02 GMT -5 maloney said:

Capital one is back up to .60%

What kind of capital one account it is?  Mine are still showing 0.30%

[just]

ally is back to .6%

[mommin]

May 16, 2022 9:50:55 GMT -5 archiethedragon said:

May 1, 2022 17:47:02 GMT -5 maloney said:

Capital one is back up to .60%

What kind of capital one account it is?  Mine are still showing 0.30%

I just opened a 360 Performance Savings account at Cap1 last week. It is at .6% while the regular MM account was still at .3%.

[k3am]

May 16, 2022 11:52:23 GMT -5 mommin said:

May 16, 2022 9:50:55 GMT -5 archiethedragon said:

What kind of capital one account it is?  Mine are still showing 0.30%

I just opened a 360 Performance Savings account at Cap1 last week. It is at .6% while the regular MM account was still at .3%.

Capital One made this change a while ago (created the 360 Performance that has a yield higher than the MM account). I'm not sure why they did it, it was annoying but relatively easy to create new accounts and move all my funds over there. Even their customer service people didn't understand why they did it. I don't even see the option to open a money market account anymore though, so maybe they were phasing them out?

[archiethedragon]

mommin, k3am, maloney, Thank you! I just opened a performance savings account.

[mainelyfoolish]

I looked harder at Bread (formerly Comenity) and found some reviews online that people have been limited in how much money they can transfer to another bank at one time (there is nothing in any of the bank account disclosures that says this). It sounded like it might be problematic if someday I want to transfer a large sum of money to my checking account.

I also looked at Bask but they don’t offer joint accounts and that doesn’t work for my needs.

After all that, I decided to keep using my CapOne 360 account since it went up to 0.6%.

[dutchgirl678]

mommin, thanks for that! We have all our savings in our CapOne account but it was still at .3%. I just opened the Performance savings account and moved the money there.

For our kids we have kid savings accounts at the local Credit Union that get 5%!

[steph2008]

Thank you so much for this post!! We have our E fund in Capital One and I just looked and we were at the .3% interest! I just made a new account and switched it. It's our largest account there and was earning the least interest- so glad I was lurking over here today.

[melmel48]

I just looked at my Ally account. They are at .75.

[maloney]

Capital 1 went up to .7 last week

[maloney]

Just bumping to say capital one accounts are now .8%