Alternative savings accounts

[CU]

So with basic savings account APY's basically zero and have been for awhile now, I was looking for somewhere else to put about 10K that would be fairly liquid. I don't mind tying it up for 1-3 months. Looked at I Bonds, but those are more long term. Then I ran across interest earning crypto savings accounts based on stablecoins. Never even knew those existed. What is a good exchange with a high APY for stablecoins like USCD? I am new to crypto, but have been reading. Is there another type of account I should be looking at?

 

[VirtualLarry]

Yes, there are a few "crypto savings account" promising extra-ordinary yields on deposits. Unfortunately, most of those places were taking the deposits that people loaned them, and placed them into even MORE risky outfits, in order to (attempt) to make even MORE yields on their deposits.

Anyways, "Not your keys, not your Crypto". Remember that!

Centralized exchanges may promise the moon, as far as interest rates, but given crypto crashing / the "crypto winter", you'll be lucky if the outfit that you've chosen doesn't file for bankruptcy and take possession of your deposits. (Remember, NO FDIC in crypto.)

None of this is financial advice, just a fair warning about getting involved in this space.

 

[dullard]

You might as well just go to Vegas. If you lose your money, at least you got at trip out of the $10k.

 

[sandorski]

The idea of Saving Crypto to benefit from accrued Interest seems so far detached from Reality that I challenge you to a Turing Test!!

Making money with Crypto is pretty simple, you either Mine it or you Buy Low, you Sell High. The latter is the current hotness, although many seem oblivious to the basic rule. That High seems to be $60kish, the Low $30kish, at least it has been within those ranges for a number years now. That "Market" seems more like a game of Chicken, but as long as it does it might get many Rich(more like Richer)quick. After a point of seeing people getting burnt, it will come to an end naturally or be forced to end.

This was mostly a BTC rant, but if the Crypto you are using is related to BTC's Value, then it still should be a concern.

 

[snoopy7548]

I hear Coolcoin returns a high APY. Might wanna check that out.

 

[Jgtdragon]

You can check out Wealthfront, they are paying 1.40 %

 

[Torn Mind]

Doctorofcredit does a good job listing accounts with bonuses.

 

[Lost_in_the_HTTP]

If you have 10 grand to throw away, send it to me.

 

[Lost_in_the_HTTP]

Yeah, I've seen some of those new account bonuses fairly high for amounts over 10K and the money doesn't need to stay there more than a few months.

 

[Stopsignhank]

Do a search for Celsius crypto, then see if you want to put your money into crypto.

 

[Captante]

Alternative savings accounts

I'm gonna go ahead and suggest my Paypal as a prudent choice!







*(results on investments are not guaranteed!)

 

[CU]

LOL. So, I see everyone really likes crypto. The accounts I have looked at are based on USDC backed by USD which is audited monthly to stay 1 to1 locked with USD. I didn't know about USDC until recently. I thought all crypto was extremely volatile. As for FDIC, yes that is a concern. The exchange could go under or get hacked. Some do say they have their own insurance that cover 250K like FDIC does. And, larger exchanges should be more financially stable. Is it more risky than a local bank, sure. But, so are individual stocks. I am looking at this more like how I would look at stock than a local bank's savings account. I was actually thinking of just putting the money in a stock, but I already have mutual funds and IRA's that contain various stocks and assets. Plus who is to say the stock I pick doesn't go up or is down when I need to pull the money out for some reason. And, savings accounts, even the high ones (1.5%) are still way below inflation.

 

[Captante]

 

[CU]

I like the meme above. Off subject, it is just CryptoBros reminded me of when I worked for a high frequency trading company. It was crazy to watch the daily profits swing millions up and down as the close would near. The 2010 flash crash was crazy. They made so much money that day with the volatility. And could then turn around and lose a million another day.

 

[JM Aggie08]

We have an Ally online savings account for money we're still trying to...figure out what to do with lol.

It started at 1.5% a few years ago, shit the bed during covid, and has been going up with rising interest rates.

 

[CU]

And they are now reporting inflation is 9.1%. so it keeps getting worse.

 

[deadlyapp]

Why would anyone think investing with any type of stablecoin or account that "promises" returns above inflation is a good idea after the various complete crashes of the same things in the last month or two is beyond me.

You already sound like you're convinced that this is the best idea and nobody here is going to convince you otherwise.

 

[CU]

Why would anyone think investing with any type of stablecoin or account that "promises" returns above inflation is a good idea after the various complete crashes of the same things in the last month or two is beyond me.

You already sound like you're convinced that this is the best idea and nobody here is going to convince you otherwise.

What stablecoins have crashed? I know about TerraUSD. But, have any Fiat-collateralized ones crashed? I haven't decided yet either. Been looking at this for a few weeks now.

 

[Ken g6]

Looked at I Bonds, but those are more long term.

They're liquid after 1 year, and you lose the last 3 months of interest if withdrawing them within the first 5 years I think, but that's not terrible if you don't need the money for a year.

Still, it's true, I've only put money from my tax return into one so far.

 

[Shmee]

If you want more guaranteed interest at a decent rate, I like the sounds of I bonds right now. I am thinking of buying one myself. Crypto of different types is nice, but I see it as more of something one can invest in and trade like stocks (or one can mine and sell/hodl), rather than a savings account.

 

[drnickriviera]

We have an Ally online savings account for money we're still trying to...figure out what to do with lol.

It started at 1.5% a few years ago, shit the bed during covid, and has been going up with rising interest rates.

I'm starting to ditch ally for bread financial (1.65%) Ally was real fast to drop rates with each fed announcement, but have been dragging their feet with raising rates. Bread allows authenticator apps for 2fa so no more stupid text or email for that

 

[Fritzo]

It's a great time to get into the crypto market as everything is rock bottom right now, and it's not expected to get better until October/November. However, the market is very volitile right now and you might end up putting in say $500 and it be worth $250 for a few weeks. If you're OK with that I've had good luck with SoFi for a savings bank that handles crypto. That new Coinbase Pro looks interesting too if you're going to be doing high-volume deposits.

 

[Muse]

You can check out Wealthfront, they are paying 1.40 %

E*Trade is paying me exactly that on my Premium Savings Account with them, at least it was when I sold my stock a couple weeks ago, and it was FDIC insured up to 500K. I think most online savings accounts now only are FDIC insured up to 250K, the reasons for the difference there I do not know. A quick look at _recommended_ online FDIC insured SA's last week suggests APY's are going up, which I figured would happen with the FED's jacking up interest rates lately.

 

[Muse]

And they are now reporting inflation is 9.1%. so it keeps getting worse.

I don't see a secure place for cash now that isn't being clobbered by inflation. I figure you have to play the long game. Eventually all this will change.

 

[Brainonska511]

If you want a relatively safe place for cash where it won't lose too much value, there aren't many good options:

1) get I-bonds: you just have to hold for a year (3-month interest penalty if you cash out before 5 years, which isn't a big deal)

2) Use a regular savings account if you don't want to lock up the money for a year and just deal with the 1.5% interest rate.

3) spend it. It's worth more today than it is tomorrow in the current environment.