Does anyone use these? They are regular savings accounts but pay interest in the 3-4% range. That's almost CD money. Do you trust them? Online banks like Capitol One, American Express are household names. Others, like Synchrony, SoFi and CIT are less familiar. These are all are FDIC insured. Capitol One has a deal now if you deposit $100k you get 3% interest plus a $1500 bonus if you keep that minimum in for at least 90 days. Its tempting and I've had their credit card for many years so I guess I trust them.

Still it takes some "getting used to" for an old suspicious guy to put this kind of money into an institution where you can't walk thru a front door!

I'm getting 4% from a brick and mortar bank in my area. Not a CD, a high yield savings. I have used the online ones in the past with good success. But I prefer the locals.

I have used used Marcus which is a Goldman Sachs entity for several years. They now are paying 3.4% with no minimum. CD's are higher. They also have no penalty CD's.

American Express since 2022, but the APY has gone down, starting at ~4.1%, but now 3.1. It still makes me some $400 a year in interest. My credit union only offers this APY in a CD.

I too have used Marcus, easy to use, easy to move money around.

There are a couple of other ones that I believe have higher yields, but they seemed sketchy so I stuck with Marcus.

Capital One and Ally Bank have both been fine for many years.

Took advantage of 3.25 for a year with a new money deposit at Wells. Good timing. I looked at a MM account but didn't seem as good as having access to my savings. Online bank, nope.

I use Fidelity SPAXX and use it as my default position and write checks against it.

Apple, PayPal, Amex. Had Discover and moved it into Amex before Capital One took over

I have SPAXX as my core position for the uncommitted portion of my IRA funds as well as receiving dividends, etc.

I keep my emergency fund in a HYSA at Bask Bank. It's an online only bank, but it's a dividion of a brick and mortar bank - Texas Capital Bank. And it's still FDIC insured anyway.

It's down a bit from the heights of 5.1% back in 2023ish, but it still earns 3.75%, which is better than most HYSAs and leagues better than the 0.01% of a standard savings account.

Good info here. I had no idea local banks would pay that kind of interest. I'm going to check around.

Yes, I've used them in the past and even got my money when the bank went under in 2008. I currently use a Discover one which is now turning into Capital one. No issues, easy to move money out of them electronically.

I had been a customer of Ent credit union here in Colorado. They merged with Wings credit union and Wings credit union is currently offering a 7 month cd at 4.40 %.

Our Vio Bank savings account gets around 4%, fully insured. Vio is the online-only branch of MidFirst Bank, so there's a large name behind it. One downside to a lot of these HYSA's is that the money may not be immediately accessible. It may take a day or two to transfer out, and you are usually limited in the number of transfers per month. It's still more accessible than a CD, however, at the same or better rates than I'm finding around here.

Been doing this through Capital One and Amex for years. Not sure what the concern would be.
Transfers in or out typically only take 1-2 days.

Cit bank is down to 4.1%. When I started with them it was something over 5%.

quote:

Originally posted by Anush:
I have used used Marcus which is a Goldman Sachs entity for several years. They now are paying 3.4% with no minimum. CD's are higher. They also have no penalty CD's.

I have a HY Savings with Marcus too. Also, an Apple Savings which is also hosted by Goldman Sachs. Both are paying 3.4% right now which isn't great. but a lot better than the 0.1% you get from most banks.

The Apple account gets the rewards from my Apple Card purchases automagically rolled into it daily. This is a tremendous convenience.

Neither of them offer a management option other than on-line/mobile. No bank books (remember those?), branches, paper checks or statements (I think you can opt in to paper statements for Marcus, but not Apple).

Apart from the abysmal Marcus mobile app, I have no complaints.

They are the perfect place to park an emergency fund. I've been getting around 4% from CIT bank for years. I check it every once in a while but no big changes.

I have two CapOne HYSA's, one just as a buffer for personal finances and when we recently cut some timber I dropped that in a new one that my mom and I have access to, just for farm expenses. 3% will pay the taxes every year on the farm.