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literally this big posted:I made a post about this a page back. The problem with many of these is that they require gymnastics with direct deposit/etc that I'm not going to do for a $1k deposit/insignificant portion of my emergency fund.
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Sep 26, 2020 19:55
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Residency Evil posted:The problem with many of these is that they require gymnastics with direct deposit/etc that I'm not going to do for a $1k deposit/insignificant portion of my emergency fund. It's just so insanely practical, for someone in my shoes, that I like to mention it every time someone asks about high yield savings accounts.
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Sep 26, 2020 20:32
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Doesn't opening half dozen new accounts hurt your credit score?
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Sep 26, 2020 21:16
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Nitrousoxide posted:Doesn't opening half dozen new accounts hurt your credit score? No.
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Sep 26, 2020 21:20
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I thought average age of account is a factor in your credit score
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Sep 26, 2020 21:21
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Nitrousoxide posted:I thought average age of account is a factor in your credit score
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Sep 26, 2020 21:24
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But, opening the additional accounts at new institutions just means you have more places to keep up with in terms of managing accounts, transferring balances, watching out for fraud, updating contact info when you move, getting more snail/e-mail from more companies about your account, etc.
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Sep 26, 2020 21:37
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Everyone in this thread has signed up for some amount of busywork, often with diminishing returns. Not a big deal if someone's threshold is different from yours.
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Sep 26, 2020 21:41
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Residency Evil posted:Seems like 1.3% overall though? CPI is a fantasy to keep government expenditure low and real GDP numbers looking better than they are.
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Sep 27, 2020 03:46
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What's the good way to measure Price of Things Go Up?
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Sep 27, 2020 03:55
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literally this big posted:Yeah, I think the biggest divide between those who find this useful and those don't is age/wealth/income. Not surprising, given the $10k limit, but that seems to be the deciding factor. If you have <$10k in wealth, then these accounts function as an excellent place to safely store your cash savings, and practically get free a +5% boost to your cash-on-hand every year. If you're worth significantly more than $10k, then I can see it not being worth the hassle. But just to be clear, the only 'work' that goes into these accounts is the initial creation/setup. Once the accounts are funded and the proper auto-transfers are set up, there's no further work necessary other than transferring the money out as frequently (or infrequently) as you'd like. Are you a military veteran ? I looked into a few of these and all the credit unions required either local resident or military vet. I’m willing to park a bit in a credit union for 5% ish. The net spend 5 is a bit outside what I’m willing to do.
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Sep 27, 2020 10:15
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If you can split your direct deposit from your employer into two accounts this seems like the best low effort option: https://www.hmbradley.com/ Put the majority of your dd into your checking account wherever, then divert $50 or $100 into hmbradley. You have to save at least 20% of the deposits you make to earn the 3% APR, but since there's no minimum deposit required, you can just DD a small portion of your paycheck and never touch the account meaning you keep that 3% by not withdrawing more than $20 in a month. No moving money around or whatever, and it eligible to earn that interest on up to $100,000 in the account so your not as velocity limited as the other options.
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Sep 27, 2020 12:06
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Nitrousoxide posted:If you can split your direct deposit from your employer into two accounts this seems like the best low effort option: ....so assuming my work splits deposits , what’s stopping me from parking something like $5k, and deposit $10 a month to said savings account to get 3% back on the whole thing. Do they have restrictions on how much you can withdraw at a time ?
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Sep 27, 2020 14:25
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Duckman2008 posted:....so assuming my work splits deposits , what’s stopping me from parking something like $5k, and deposit $10 a month to said savings account to get 3% back on the whole thing. No restrictions as far as I can tell. I do believe if you withdraw more than you deposit over a quarter then you get no interest in the account for the next quarter. So it's the sort of account that you don't ever want to withdraw from, or if you do you want to have another savings account that you can dump it into for a quarter. I'm personally planning on treating this account as my emergency 6-month to a year lost my job need to be able to continue living fund. and since I'm never ever planning on touching that unless I lose my job I should never run into a situation where I'm drawing it down unless it's an emergency. Sort of like a more liquid CD account.
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Sep 27, 2020 15:09
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Nitrousoxide posted:No restrictions as far as I can tell. I do believe if you withdraw more than you deposit over a quarter then you get no interest in the account for the next quarter. So it's the sort of account that you don't ever want to withdraw from, or if you do you want to have another savings account that you can dump it into for a quarter. Yeah, I def have $x,xxx amount of savings that I haven’t touched in 10 years (good), so I may be right with you there. Deposit $10 a month, leave it be, as long as I can swing it to my main bank with no cost other than not getting interest for 3 months , I’m good with that. If you try it please feel free to post a follow up here. I may try it, I just want to research it a bit more.
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Sep 27, 2020 16:22
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Duckman2008 posted:Yeah, I def have $x,xxx amount of savings that I haven’t touched in 10 years (good), so I may be right with you there. Deposit $10 a month, leave it be, as long as I can swing it to my main bank with no cost other than not getting interest for 3 months , I’m good with that. I signed up for an account last night and have started the process for transferring in some money and set up my direct deposit. Once I get paid this coming week hopefully it'll be set up like it should be and I can see.
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Sep 27, 2020 16:36
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Read the fine print. More places are on to the internet cash chasing and require your direct deposit to be a certain minimum amount. It's not always that much but it could need to be like $200 or whatever.
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Sep 27, 2020 16:45
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H110Hawk posted:Read the fine print. More places are on to the internet cash chasing and require your direct deposit to be a certain minimum amount. It's not always that much but it could need to be like $200 or whatever. It Seems pretty straightforward to me. You need one qualifying direct deposit per month. No minimum value stated https://faq.hmbradley.com/hc/en-us/articles/360039135591-What-are-Savings-Tiers- A qualifing direct deposit is defined as quote:For our accounts, we define direct deposits as those deposits made by the customer’s employer, a federal or state government agency, retirement benefits administrator, or alimony. https://faq.hmbradley.com/hc/en-us/articles/360038741592-What-qualifies-as-a-direct-deposit- And the APY applies to the entire balance, not just the deposits. https://faq.hmbradley.com/hc/en-us/articles/360045937312-Does-my-interest-rate-apply-to-my-entire-balance- No limit to the number of withdrawls a month: https://faq.hmbradley.com/hc/en-us/articles/360039135571-Is-there-a-limit-on-the-number-of-withdrawals-I-can-make-on-my-account- Accounts are FDIC insured https://faq.hmbradley.com/hc/en-us/articles/360039135811-Are-my-deposits-FDIC-insured-
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Sep 27, 2020 17:35
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Seems pretty legit. Does it say how long it takes a new account to start accruing interest? Or is it just evaluated at the end of each quarter i.e. new deposits won't see interest until 1/1/21?
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Sep 27, 2020 18:11
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spf3million posted:Seems pretty legit. Does it say how long it takes a new account to start accruing interest? Or is it just evaluated at the end of each quarter i.e. new deposits won't see interest until 1/1/21? https://faq.hmbradley.com/hc/en-us/articles/360038741512-What-will-my-Savings-Tier-be-when-I-first-open-an-HMBradley-deposit-account- posted:New accounts with confirmed direct deposit will earn a tier no lower than Savings Tier 3 for the first full calendar quarter after opening a deposit account. So you should start out at 1% once you've got a confirmed direct deposit going in. Then the next quarter you should go up to 3% assuming you don't withdraw more than 80% of the amount that you deposit. Either way that's still more than the current interest rate for Ally for savings accounts there.
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Sep 27, 2020 18:24
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Nitrousoxide posted:So you should start out at 1% once you've got a confirmed direct deposit going in. Then the next quarter you should go up to 3% assuming you don't withdraw more than 80% of the amount that you deposit.
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Sep 27, 2020 18:33
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Nitrousoxide posted:If you can split your direct deposit from your employer into two accounts this seems like the best low effort option: Seems real legit. I might have to pull the trigger and send my ally stuff over to them. Please report back on interface and stuff once you get it rolling.
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Sep 27, 2020 18:56
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This was the most polished looking, easy to use bank interface I've used in a while. I just transferred the max deposit of $2500 over from Ally and from "I think I will open an account and see if I can get 3% interest" to "your transfer is processing" was about 5 minutes. I too will update the thread with my experiences as they occur. I did give them a side-eye when the sign up page didnt cover my SSN with ****, but that was it.
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Sep 27, 2020 19:00
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quote:Interest is earned on account balances up to $100,000. Account funds over $100,000 will not earn interest. Terms and conditions apply. That is a remarkably good ceiling.
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Sep 27, 2020 19:46
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Happiness Commando posted:This was the most polished looking, easy to use bank interface I've used in a while. I just transferred the max deposit of $2500 over from Ally and from "I think I will open an account and see if I can get 3% interest" to "your transfer is processing" was about 5 minutes. I too will update the thread with my experiences as they occur. That's interesting, I will have to look into doing the same, thanks.
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Sep 27, 2020 19:52
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Bummer, my employer won't let me do more than one Direct Deposit account. Might still be worth dumping money in from Ally and switching my whole paycheck over.
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Sep 27, 2020 21:16
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Tyro posted:Bummer, my employer won't let me do more than one Direct Deposit account. Might still be worth dumping money in from Ally and switching my whole paycheck over. I'm not so sure that it's useful for that sort of situation. As a primary checking account you're forced to dump 20% of your income into the account in order to keep the high interest rate. You could probably put that 20% into better retirement vehicles instead.
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Sep 27, 2020 22:07
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Nitrousoxide posted:I'm not so sure that it's useful for that sort of situation. As a primary checking account you're forced to dump 20% of your income into the account in order to keep the high interest rate. You could probably put that 20% into better retirement vehicles instead. We have a huge amount in cash right now because there's a good chance we might buy a house in the next year. So might be worth putting it here vs 0.6% at Ally.
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Sep 27, 2020 22:19
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literally this big posted:While there are a lot of banks offering high yield savings accounts like this with lots of restrictions and activity requirements, I don't want to have to actively think about my accounts on such a regular basis, and then suffer negative consequences if I don't live my life in a way that satisfies their requirements. So I looked and I compiled a list of all the no-bullshit super high yield savings accounts on there, and I've posted about the a few times before. FYI Service Credit Union is apparently currently offering a $100 signup bonus
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Sep 28, 2020 04:20
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Signed up for HMBradley last night. Easy and fast sign up + approval and was happy to learn that my employer lets me split up direct deposits. They have an iOS app and 2FA through Authy or whatever. It's a bit buggy for displaying things (I tried to load a Term and Conditions sheet and it flashed it up at me before the screen went blank). The web interface is clearly meant to be the main home. I managed to typo a middle name, so I guess I'll be able to report back on their customer service, since I had to send in a request to do that. I don't have a lot of patience for gaming these kinds of systems, so my plan is to use the bank account more or less as they intended. I'm sending my known fixed costs to the bank that has the joint account and I plan to use HMBradley as the place for emergency funds and holding place for other savings as well as day to day checking. If that causes me to miss out on some interest tiers down the road, I'll get more clever about slicing and dicing my direct deposit and where the expenses come from.
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Sep 28, 2020 15:47
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doingitwrong posted:Signed up for HMBradley last night. Easy and fast sign up + approval and was happy to learn that my employer lets me split up direct deposits. They have an iOS app and 2FA through Authy or whatever. It's a bit buggy for displaying things (I tried to load a Term and Conditions sheet and it flashed it up at me before the screen went blank). The web interface is clearly meant to be the main home. Keep in mind that I don't believe that they offer physical paper checks. So if you ever need to pay for a contractor to come do something at your house or whatever you will definitely want a checking account on another institution with enough funding for it.
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Sep 28, 2020 15:52
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GoGoGadgetChris posted:What's the good way to measure Price of Things Go Up? PCE I guess?
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Sep 28, 2020 21:04
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Chad Sexington posted:PCE I guess?  I'm not very familiar with PCE, but it seems to currently be tracking well below CPI? This may be a better reflection of consumer prices, but it doesn't seem to support an argument that well actually, there's loads of inflation right now, vs. what I said - it's near zero, so the silver lining to falling bank account interest rates is that your cash isn't losing value sitting in low-yield savings right now. e. I also found this metric, "chained trimmed PCE"  which shows inflation at 1.8% (that is, prices 1.8% higher than one year prior) and falling. Given what's shown in the above chart (a plunge in both consumer and producer spending) that makes sense to me; inflation isn't a concern, despite the fed pumping trillions into the economy. Leperflesh fucked around with this message at 21:28 on Sep 28, 2020 |
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Sep 28, 2020 21:24
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Leperflesh posted:
Sure, there's deflationary pressure on a macro level from a sputtering economy. But what is important when looking at how much of your net worth you hold in cash is what the prices on things you actually purchase are doing. And by and large, the prices of things goons are buying -- food (up 4.1%), rent (2.3%), medical care (5.3%) -- are going up while things nobody really needs to buy -- airfare, hotels, new clothes -- are going down. I guess you could argue that's just relative price movements. I don't know poo poo about PCE, as evidenced by the fact that it invalidated my argument, I just threw it out there since it's calculated more frequently than CPI. I don't trust CPI because the hedonic adjustments they make are completely subjective and fail to capture declines in quality of the goods being measured. Chad Sexington fucked around with this message at 22:16 on Sep 28, 2020 |
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Sep 28, 2020 22:09
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Most of the argument I recall in CPI is that it fails to capture increases in quality of goods, not the opposite.
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Sep 29, 2020 00:03
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Looked at the OP of this thread a few years ago upon getting my first real job and followed guidance simply enough--paid off student loans, built up a 6 month emergency fund, and maxed my annual Roth IRA contributions (company didn't have 401k) every year. For 2020 my company finally got a 401k (no matching) and I just left it alone (automatically set to 6%) which kept my take-home pay similar to 2019 and more or less the money going to the emergency fund before is going to 401k now. Anyway, with COVID stimulus + reduction in spending, I have had money leftover to continue saving and being lazy about it just kept piling into the emergency fund which seemed fine when interest rates were around inflation so I was maybe losing money in opportunity cost, but didn't feel like actively losing money having more money than intended sitting about. With interest rates dropping through the floor though, having my emergency fund up to 9 months of expenses seems harmful. So, looking to fix that, the OP's advice would be bumping the 401k contributions because generally tax incentived > not, but not sure how wise it is to have all savings beyond my emergency fund locked up for 30 years so I'm torn on doing that or opening up a normal investment account (will probably just keep it simple and get an index ETF/mutual fund). Is this a reasonable thought to keep semi-liquid investment assets that have tax burden or should I probably just adjust to more 401k taking?
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Sep 29, 2020 00:06
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Nitrousoxide posted:Keep in mind that I don't believe that they offer physical paper checks. So if you ever need to pay for a contractor to come do something at your house or whatever you will definitely want a checking account on another institution with enough funding for it. Are paper checks still really the standard for this type of transaction? I'd hope in TYOOL 2020 we would have a viable alternative. I don't have any paper checks.
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Sep 29, 2020 03:16
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Inner Light posted:Are paper checks still really the standard for this type of transaction? I'd hope in TYOOL 2020 we would have a viable alternative. I don't have any paper checks. You can always go down to Walmart and get a money order, or use Plastiq (fee applies).
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Sep 29, 2020 03:19
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Or cash. But yes, there are many contractors that don’t accept credit cards or electronic transfers.
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Sep 29, 2020 03:20
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bUm posted:Looked at the OP of this thread a few years ago upon getting my first real job and followed guidance simply enough--paid off student loans, built up a 6 month emergency fund, and maxed my annual Roth IRA contributions (company didn't have 401k) every year. For 2020 my company finally got a 401k (no matching) and I just left it alone (automatically set to 6%) which kept my take-home pay similar to 2019 and more or less the money going to the emergency fund before is going to 401k now. You are off to a good start. Money is a means to achieve your goals. What are your goals?
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Sep 29, 2020 03:33
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